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 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 & Footwear Products are USA, Germany, U.K, Italy, France, Spain, Netherlands, U.A.E, China, Hong Kong, Belgium, and Poland.
India as Footwear hub
- The country accounts for 9% of the world’s footwear production and is the second largest footwear producer and consumer in the world. For every 1,000 pairs produced and sold in India per day, the sector has the potential to create 425 jobs spanning manufacturing, allied industries, and retail.
- In terms of volume, India is expected to product almost 3 bn units by 2024 growing at more than 10% annually.
- The Indian Footwear Market was valued at $ 9.70 bn in the year 2019 And 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
- The per capita footwear consumption in India is estimated to have grown from 1.7 pairs in 2016 to 2 pairs in 2019
- The Non-leather footwear market is an upcoming segment in India and has 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.
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- $ 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
India is the 2nd largest producer and consumer of footwear in the world.
The major production centres of leather and footwear products in India are located in the States of Tamil Nadu, Andhra Pradesh, West Bengal, Uttar Pradesh, Maharashtra, Punjab, Haryana and Delhi.
India is the 5th largest exporter of leather goods and accessories in the world. India’s exports of leather, footwear and leather products touched $4.03 Bn during 2020-21 with footwear having the largest share of 46.2%, followed by leather accessories at 25.2%.
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