Modi govt's crackdown on Muslim-run leather units dents exports, hits jobs

Agencies
October 3, 2017

New Delhi, Oct 3: A government crackdown on Muslim-dominated abattoirs and the trade of cattle dragged down India's exports of leather shoes by more than 13 percent in June, as leading global brands turned to China, Bangladesh, Indonesia and Pakistan to secure supplies.

The drop in exports of shoes and leather garments comes as a setback for Prime Minister Narendra Modi, who has sought to create millions of jobs by more than doubling the leather industry's revenues to $27 billion by 2020.

Emboldened by the victory of Modi's Bharatiya Janata Party (BJP) in the 2014 general election, Hindu hard-liners, who consider cows sacred, became more assertive in their calls for a clamp-down on both the meat and leather industries, run by Muslims, who make up 14 percent of India's 1.3 billion people.

"The writing was already on the wall," Nazir Ahmed, CEO of shoemaker Park Exports, told Reuters by phone from Agra, a shoe-making hub and home to the Taj Mahal. "We have killed the goose that laid the golden egg."

India, the world's second-biggest supplier of shoes and leather garments, exports nearly half its leather goods, with overseas sales estimated at $5.7 billion in the 2016/17 fiscal year to March, down 3.2 percent from a year earlier. Footwear exports fell more than 4 percent in April-June, to $674 million.

Informal sector

In March, after being appointed chief minister of Uttar Pradesh, India's most populous state and a major leather exporter, Yogi Adityanath, a firebrand Hindu monk, ordered a closure of abattoirs operating without licenses.

Slaughterhouse owners complain that much of India's meat and leather trade takes place in the informal sector, and it's hard to get licences, especially for smaller units.

In May, citing cruelty to animals, the federal government banned the trade of cattle for slaughter, and restricted livestock sales only for agricultural purposes such as ploughing and dairy production.

But the country’s top court overturned that order, citing the hardship the ban had caused.

That has not brought relief as repeated attacks on trucks carrying cattle still rankle the leather trade.

"The supreme court has allowed the resumption of trade for cattle, but the ground reality is that cow vigilante groups continue to be active and no one wants to risk his life by transporting cattle," Ahmed said.

Deterred by a clutch of measures that squeezed the supply of leather, a key raw material, brands like H&M, Inditex -owned Zara and Clarks, cut back their orders to India, said M. Rafeeque Ahmed, a leading shoe exporter from the southern city of Chennai and former president of the Federation of Indian Export Organisations.

"We lost orders because our buyers were sceptical of our ability to meet their requirements. Instead, most buyers moved to rival suppliers in Asia and southeast Asia," he said.
A spokesman for India's trade ministry declined to comment.

Earlier this year, a finance ministry report said India should sign more free trade agreements and make tax and labour reforms to drive leather exports, which offer "tremendous opportunities for (the) creation of jobs."

The industry is also grappling with a Goods and Services Tax, introduced in July, which has pushed up production costs by 6-7 percent, exporters said.

Nowhere to hide

The crackdown also hurt day-workers employed at shoe and garment making units and hit leather supplies, forcing manufacturers to import hides from the United States, Australia, and some European nations, raising the cost of production and squeezing margins.
Many tanneries, as a result, have run out of leather.

"My business has come to a standstill because I don't have any inventory at all. Most large shoemakers are importing hides now," said a tannery owner, who asked not to be named so as to avoid retaliation from cow vigilante groups.

Nearly a third of the roughly 3 million-strong workforce, mostly lowly-paid casual workers employed in the leather sector, have lost their jobs in the past six months, according to six shoemakers and two tannery owners interviewed by Reuters for this article.

Since most Indian states have outlawed cow slaughter, the supply of leather largely comes from the legal slaughter of buffaloes whose skins are used in many leather goods.

"Everyone must abide by the rule on cow slaughter and respect sentiments, but by choking the supply of other animal hides, we have nearly killed a thriving industry," said Ahmed of Park Exports.

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News Network
December 5,2025

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New Delhi, Dec 5: IndiGo CEO Pieter Elbers issued a public apology this evening after more than a thousand flights were cancelled today, making it the "most severely impacted day" in terms of cancellations. The biggest airline of the country cancelled "more than half" of its daily number of flights on Friday, said Elbers. He also said that even though the crisis will persist on Saturday, the airline anticipates fewer than 1,000 flight cancellations.

"Full normalisation is expected between December 10 and 15, though IndiGo cautions that recovery will take time due to the scale of operations," the IndiGo CEO said. 

IndiGo operates around 2,300 domestic and international flights daily.

Pieter Elbers, while apologising for the major inconvenience due to delays and cancellations, said the situation is a result of various causes.

The crisis at IndiGo stems from new regulations that boost pilots' weekly rest requirements by 12 hours to 48 and allow only two night-time landings per week, down from six. IndiGo has attributed the mass cancellations to "misjudgment and planning gaps".

Elbers also listed three lines of action that the airline will adopt to address the issue.

"Firstly, customer communication and addressing your needs, for this, messages have been sent on social media. And just now, a more detailed communication with information, refunds, cancellations and other customer support measures was sent," he said.

The airline has also stepped up its call centre capacity.

"Secondly, due to yesterday's situation, we had customers stranded mostly at the nation's largest airports. Our focus was for all of them to be able to travel today itself, which will be achieved. For this, we also ask customers whose flights are cancelled not to come to the airports as notifications are sent," the CEO said.

"Thirdly, cancellations were made for today to align our crew and planes to be where they need to start tomorrow morning afresh. Earlier measures of the last few days, regrettable, have proven not to be enough, but we have decided today to reboot all our systems and schedules, resulting in the highest numbers of cancellations so far, but imperative for progressive improvements starting from tomorrow," he added.

As airports witnessed chaotic scenes, the Directorate General of Civil Aviation (DGCA) stepped in to grant IndiGo a temporary exemption from stricter night duty rules for pilots. It also allowed substitution of leaves with a weekly rest period. 

Civil Aviation Minister Ram Mohan Naidu has said a high-level inquiry will be ordered and accountability will be fixed.

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News Network
December 4,2025

Mangaluru: Chaos erupted at Mangaluru International Airport (MIA) after IndiGo flight 6E 5150, bound for Mumbai, was repeatedly delayed and ultimately cancelled, leaving around 100 passengers stranded overnight. The incident highlights the ongoing country-wide operational disruptions affecting the airline, largely due to the implementation of new Flight Duty Time Limitations (FDTL) norms for crew.

The flight was initially scheduled for 9:25 PM on Tuesday but was first postponed to 11:40 PM, then midnight, before being cancelled around 3:00 AM. Passengers expressed frustration over last-minute communication and the lack of clarity, with elderly and ailing travellers particularly affected. “Though the airline arranged food, there was no proper communication, leaving us confused,” said one family member.

An IndiGo executive at MIA cited the FDTL rules, designed to prevent pilot fatigue by limiting crew working hours, as the cause of the cancellation. While alternative arrangements, including hotel stays, were offered, about 100 passengers chose to remain at the airport, creating tension. A replacement flight was arranged but also faced delays due to the same constraints, finally departing for Mumbai around 1:45 PM on Wednesday. Passengers either flew, requested refunds, or postponed their travel.

The Mangaluru delay is part of a broader crisis for IndiGo. The airline has been forced to make “calibrated schedule adjustments”—a euphemism for widespread cancellations and delays—after stricter FDTL norms came into effect on November 1.

While an IndiGo spokesperson acknowledged unavoidable flight disruptions due to technology issues, operational requirements, and the updated crew rostering rules, the DGCA has intervened, summoning senior airline officials to explain the chaos and outline corrective measures.

The ripple effect has been felt across the country, with major hubs like Bengaluru and Mumbai reporting numerous cancellations. The Mangaluru incident underscores the systemic operational strain currently confronting India’s largest carrier, leaving passengers nationwide grappling with uncertainty and delays.

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News Network
December 4,2025

Udupi: A 40-year-old NRI from Udupi has reportedly lost more than Rs 12.25 lakh in an online investment scam operated through Telegram.

According to a complaint filed at the CEN police station, Leo Jerome Mendonsa, who has been working in Dubai for the past 15 years in computer accessories sales, maintains NRI accounts in Karkala and Nitte.

On November 12, 2025, Mendonsa was added to a Telegram group called Instaflow Earnings by unknown individuals. Users identified as Priya and Dipannita persuaded him to invest in “Revenue Tasks.” Initially, Mendonsa transferred Rs 1,100 multiple times and received the promised returns, encouraging him to continue.

On November 14, another user, Nishmitha Shetty, directed him to register on a website, digitvisionuoce.cc, and invest Rs 4 lakh in various shares. Over the next few days, he made multiple transfers totaling Rs 12,25,000, including Rs 50,000 via Google Pay, believing the scheme was legitimate.

After receiving the money, the alleged handlers stopped responding, and neither the invested amount nor the promised profits were returned.

The CEN police have registered a case under Sections 66(C) and 66(D) of the IT Act and Section 318(4) of the Bharatiya Nyaya Sanhita (BNS), and investigations are ongoing.

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