Leather- a special focus sector
As per National Manufacturing Policy
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 about 3 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 Leather industry has the tendency to generate 250 jobs for every $ 0.2 mn investment.
for more details, please refer to FDI Policy 2017
$ 340 mn
Footwear exports
$ 519 mn
Leather garments exports
3 mn
People employed
$ 874 mn
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
With an annual turnover of over $ 12 bn, the export of leather and leather products touched $ 5.6 bn during 2016-17
Exports are segmented as:
- Footwear export accounts for 49% share. Product mix with gents (55%), followed by ladies (35%) and children (10%). With an annual production of 2065 mn pairs, a huge domestic retail market exists with 1950 mn pairs (95%).
- Leather garments industry: Annual production capacity of 16 mn pieces. 9% share of India’s total leather export.
- Leather good and accessories industry including saddlery and harness: Accounts for 23% share for leather goods and around 2.5% 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 15.6%. 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
Recent Announcements
$ 100 mn Brazilian firm Grupo Priority brings premium shoe brand to India. Grupo Priority has launched its flagship men’s shoe brand West Coast in India in a tie-up with the distribution arm of footwear retailer Metro Shoes.
Founder kids footwear brand Teddy Toes aims to make luxurious international designs easily available in India, and at affordable prices.
Development production centers
Mega Leather Clusters (MLC) implementation by 2020
Opportunity to set-up export units
Exports projected at $ 9 bn by 2020
Major Investors
Data on Map
FAQ
Frequently
Asked Questions
What are the subschemes under IFLADP?
The following are the subschemes that would be implememted under IFLADP during 2017-2018 to 2019-2020
i) Human Resource Development (HRD)
ii) Integrated Development of Leather Sector (IDLS)
iii) Establishment of Institutional Facilities
iv) Mega Leather, Footwear and Accessories Cluster (MLFAC)
v) Leather Technology, Innovation and Environmental
vi) Promotion of Indian Brands in Leather, Footwear and Accessories
vii) Additional Employment Incentive for Leather, Footwear and Accessories sector
For further details please access following linkWhat is IDLS?
IDLS sub-scheme proposes to incentivize investment and manufacturing including job creation by providing backend investment grant/subsidy @ 30% of the cost of new plant and machinery to micro, small and medium enterprise and @ 20% of the cost of plant and machinery to other units for modernization/technology upgradation in existing units and also for setting up of new units. The proposal under this sub-scheme is to incentivize 1000 units in leather, Footware and Accessories & Components sector during the three years with proposed outlay of $ 65.38 mn.
For further details please access following link.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.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.
