Snapshot

World's tannery

The Leather industry in India accounts for around 13% of the world’s leather production of hides/skins and handles a robust annual production of about 3 bn sq. ft. of leather. The country accounts for 9% of the world’s footwear production. The industry is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country.

India has an abundance of raw materials with access to 20% of world’s cattle and buffalo and 11% of the world’s goat and sheep population.

The Leather industry is an employment intensive industry providing job to more than 4 mn people, mostly from the weaker sections of the society. Women employment is predominant in Leather products industry with about 30% share. The Leather industry in India has one of the youngest workforces with 55% of the workforce below 35 years of age.

The major markets for Indian Leather & Leather Products are USA with a share of 17.22%, Germany 11.98%, U.K 10.43%, Italy 6.33%, France 5.94%, Spain 5.01%, Netherlands 3.52%, U.A.E 3.35%, China 2.61%, Hong Kong 2.15%, Belgium 2.21% and Poland 2.11%.

India as Footwear hub

  • For every 1,000 pairs produced and sold in India per day, the sector can create 425 jobs spanning manufacturing, allied industries, and retail. 
  • In terms of volume, India produced 1.8 billion units and is expected to product almost 3 billion units by 2024 growing at more than 10% annually 
  • As per Council for Footwear Leather & Accessories, the footwear sector has the potential to grow up to US$ 80 billion, or eight times its present size, by 2030
  • Indian Footwear Market was valued at $ 9.70 Billion in the year 2019 
  • The per capita footwear consumption in India is estimated to have grown from 1.7 pairs in 2016 to 2 pairs in 2019
  • Non leather footwear market in India contributed approximately 59 per cent of the total footwear market in 2019 with a market size of $ 4.3 Bn which is expected to increase to $ 6 Bn in 2024.

For further details, please refer FDI Policy

  • $ bn

    Footwear Exports

  • $ mn

    Leather garments exports

  • mn

    People employed

  • $ mn

    Raw hides and finished leather exports

Second largest producer of footwear and leather garments in the world

Second largest exporter of leather garments in the world

Fifth largest exporter of leather goods & accessories in the world

Industry Scenario

Exports of leather, footwear and leather products touched $4.03 bn during 2020-21.

The different segments of leather, footwear and leather goods exports and their respective share of exports are:

 

  • Footwear- 46.2%
  • Leather Accessories- 25.2%
  • Finished Leather- 6.7%
  • Leather Garments- 14.4%
  • Saddlery & Harness- 4.6%

 

The major production centres for footwear, leather and leather products in India are located in the States of Tamil Nadu – Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode; West Bengal – Kolkata; Uttar Pradesh – Kanpur, Agra, Noida, Saharanpur; Maharashtra – Mumbai; Punjab – Jalandhar; Karnataka – Bengaluru; Telengana Hyderabad; Haryana – Ambala, Gurgaon, Panchkula, Karnal and Faridabad; Delhi; Madhya Pradesh – Dewas; Kerala – Kozhikode and Ernakulam / Cochin; Rajasthan; Jaipur; Jammu & Kashmir; Srinagar.

GROWTH DRIVERS

  • Large millennial population

    Youth contributes 1/3 to the total Indian population with higher focus on branded consumption is driving the consumption of premium footwear.

  • Organized Retail Market in India

    The overall retail market, that grew to USD 0.7 Trillion (Tn) in 2019, is expected to cross the USD 1.1 Tn mark by 2025.

  • Availability of manpower

    Young trained workforce with 62 per cent of population in the working age group of 15 to 59 years

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FAQs

Frequently
Asked Questions

What is the Leather sector overview of India?

India is the second largest producer and consumer of footwear in the world.

The Leather industry in India accounts for around 13% of the world’s leather production of hides/skins and handles a robust annual production of about 3 bn sq. ft. of leather. The country accounts for 9% of the world’s footwear production. The industry is an employment intensive industry providing job to more than 4 Mn people. The industry is home to many leather and footwear clusters across the length and breadth of India.

 

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What are the major initiatives undertaken by the government in recent times in the leather sector?

The Indian Footwear and Leather Development Programme (IFLDP) (erstwhile IFLADP) has been approved for continuation from 2021-22 with an approved financial outlay of INR 1700 crore. IFLDP has been approved by the Union Cabinet on 19.01.2022 as continuation of the erstwhile IFLADP till 31.03.2026 or till further review, whichever is earlier. Indian Footwear and Leather Development Programme(IFLDP) aims at development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production. For more details please visit - https://pib.gov.in/PressReleasePage.aspx?PRID=1795797

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Where are major production centers for leather and leather products in India?

The major production centers for leather and leather products in India are located in the states of :
1) Tamil Nadu – Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode. 
2) West Bengal – Kolkata.
3) Uttar Pradesh – Kanpur, Agra, Noida, Saharanpur; Maharashtra – Mumbai.  
4) Punjab – Jallandhar. 
5) Karnataka – Bangalore. 
6) Andhra Pradesh – Hyderabad. 
7) Haryana  – Ambala, Gurgaon, Panchkula, Karnal and Faridabad. 
8) Delhi. 
9) Madhya Pradesh – Dewas. 
10) Kerala – Calicut and Ernakulam / Cochin. 
11) Rajasthan - Jaipur. 
12) Jammu & Kashmir - Srinagar.

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Is prior government approval required for investing in this sector?

No, 100% FDI is allowed under the Automatic route.

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What are the sub-schemes approved under Indian Footwear and Leather Development Programme (IFLDP)?

Indian Footwear and Leather Development Programme(IFLDP) aims at development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

The following sub-schemes have been approved under IFLDP during 2021-26:-

(i) Sustainable Technology and Environmental Promotion (proposed outlay INR 500 crore):- Special Purpose Vehicle constituted for each CETP would be provided assistance @ 80% of the total project cost for Northeastern Areas with industry’s/beneficiary share to be 20% of the project cost and @ 70% of the total project cost for other areas with industry’s/beneficiary share to be 30% of the project cost with a limit of INR 200 crore.

(ii) Integrated Development of Leather Sector (IDLS) sub-scheme (proposed outlay INR 500 crore):- Assistance would be provided to the sectoral units for their modernization/capacity expansion/technology up-gradation on or after 01.01.2020 @30% to MSME units and 20% to other units. Financial assistance is being proposed to North Eastern Areas also @40% of cost of plant & machinery to MSME units and 30% of the same to other units with additional 5% financial assistance for the domestically manufactured plant and machinery. Maximum assistance will be provided upto INR 15 crore per product line keeping in view 5 times increase in upper limit of investment in Plant and Machinery by MSME.

(iii) Establishment of Institutional Facilities (proposed outlay INR 200 crore):- Setting up of International Testing Centre, Sports Complex, replacement of conventional light fixtures with LED lights and construction of girls hostel in FDDI campuses are planned.

(iv) Mega Leather Footwear and Accessories Cluster Development (MLFACD) sub-scheme (proposed outlay INR 300 crore):- The sub-scheme aims at world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather and footwear industry so as to cater to the domestic market and exports.

Graded assistance is proposed to be provided @50% of the project cost or @70% of the project cost in Northeastern areas, for land development, core infrastructure, HRD and social infrastructure, production facilities including ready to use sheds with plug and play facility, R&D support and export services excluding cost of land with maximum Government assistance being limited to INR 125 crore.

(v) Brand Promotion of Indian Brands in Leather and Footwear Sector (proposed outlay INR 100 crore):- The GoI assistance is proposed to be 50% of total project cost subject to limit of INR 10 crore for each brand in next three year to promote 10 Indian brands in the International Market in 3 years. The designated agency to implement the sub-scheme is being proposed to be selected amongst institutes like NID, NIFT, IBEF, IIFT or Institutes of similar standing.

(vi) Development of Design Studios (proposed outlay INR 100 crore):- This is a new sub-scheme. Assistance would be provided to develop 10 Indian design studio. The studios will promote marketing/export linkages, facilitates buyer- seller meets, display designs to international buyers and work as interface for the trade fairs. Design Studios will be kind of ‘one-stop- shop' providing a wide range of services: design, technical support, quality control etc. Institutes like FDDI, CLRI, NID, NIFT, IBEF, IIFT or institutes of similar standing or any large units of the industry or group of industry would be the implementing agencies. For more details, please visit the link - https://pib.gov.in/PressReleasePage.aspx?PRID=1795797

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