Snapshot

World's tannery

The Leather industry in India accounts for around 12.9% 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 15.7%, Germany 11.6%, UK 10.5%, Italy 6.5%, France 5.7%, Spain 4.5%, UAE 3.9%, Netherlands 3.4%, Hong Kong 3.3%, China 2.6%, Poland 2.0%, and Belgium 2.0%.

The Leather industry has the tendency to generate 250 jobs for every $ 0.2 mn investment.

For further details, please refer FDI Policy

  • bn

    Footwear exports

  • mn

    Leather garments exports

  • mn

    People employed

  • mn

    Finished leather exports

Indian Footwear industry

Second largest producer of footwear and leather garments in the world

Indian Leather industry

Second largest exporter of leather garments in the world

Leather goods India

Fifth largest exporter of leather goods & accessories in the world

Industry Scenario

Exports of leather and leather products touched $5.5 bn during 2018-19

Exports are segmented as:

  • Footwear export accounts for 49.23% share. Product mix with gents (55%), followed by ladies (35%) and children (10%). With an annual production of 2257 mn pairs, a huge domestic retail market exists with 2021 mn pairs (90%).
  • Leather garments industry: Annual production capacity of 16 mn pieces. 9.04% share of India’s total leather export.
  • Leather good and accessories industry including saddlery and harness: Accounts for 23.79% share for leather goods and around 2.7% for saddlery and harness. The annual production capacity of 63 mn pieces of leather articles, 52 mn pairs of Industrial gloves and 12.5 mn pieces of harness and saddlery items
  • Finished leather stands at 15.2%. Tanning industry accounts for an annual production of about 3 bn sq.ft

Growth Drivers

  • Raw material availability

    3 bn sq ft. of leather produced annually

  • Youth power

    55% of the workforce below the age of 35

  • Market advantage

    The domestic market for fashion accessories to double

  • High growth potential on exports

    Capacity modernization coupled with a favorable investment climate

  • Favorable government support

    Assistance to states for infrastructure development of exports

Major Investors

Data On Map

Leather production in India

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FAQ

Frequently
Asked Questions

What is the Leather sector overview of India?

India is the second largest producer of footwear and leather garments in the world and accounts for 13% of the world's leather production of hides/skin. An overview of the sector can be accessed from the Achievement report on the link.

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

Indian Leather Development Programme:

1. One of the major activities under Indian Leather Development Programme is to provide placement linked skill development training to unemployed youth.

2. Provide employment through well planned training in leather and footwear industry.

3. For augmentation of institutional infrastructure, assistance has been provided for establishment of two new branches of Footwear design and development Institute (FDDI) at Banur (Punjab) and Ankleshwar ( Gujarat).

4. Approval has been given for setting-up Mega leather Cluster (MLC) at Nellore, Andhra Pradesh.

What is the eligibilty criteria of ILDP Scheme?

All existing units in leather and leather products, including tanneries, leather goods, saddlery, leather footwear and footwear components sector having cash profits for 2 years, undertaking viable and bankable programmes on technology up-gradation on or after 29th August 2008 are eligible for assistance.

What is Central Sector Scheme Indian Leather Development Programme (ILDP)?

The scheme is aimed at enabling existing tanneries, footwear, footwear components, and leather products units to upgrade leading to productivity gains, right-sizing of capacity, cost cutting, design and development simultaneously encouraging entrepreneurs to diversify and set up new units in the areas.

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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