The Indian Leather Products Association has urged the government to review the drastic cut in duty drawback rates. The association said the cut, which came into force on June 7, would have an adverse effect on the high employment orientated industry as exports would become economically unviable.

It added that the rates would hit leather glove exporters who are already facing low prices and margins in a competitive international market.

The association said exporters facing the new rates would have to either lose money or refuse to deliver the goods, damaging India's image as an exporting nation.