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 bn units and is expected to product almost 3 bn 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 $ 80 bn, or eight times its present size, by 2030
- Indian Footwear Market was valued at $ 9.70 bn 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% 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
- $ mn
Leather garments exports
- $ 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
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
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.
Exports of Leather & leather products values at $402.61 mn in May 2022 and records positive growth vis-à-vis May 2021 of 48.53%.
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 $0.7 Tn in 2019, is expected to cross the $1.1 Tn mark by 2025.
Availability of manpower
Young trained workforce with 62% of population in the working age group of 15 to 59 years