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 further details, please refer FDI Policy

  • $ 340 mn

    Footwear exports

  • $ 519 mn

    Leather garments exports

  • 3 mn

    People employed

  • $ 874 mn

    Finished leather exports

A

Second largest producer of footwear and leather garments in the world

B

Second largest exporter of leather garments in the world

C

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

  • Open

    Central Sector Scheme Indian Leather Dev…

    The Cabinet Committee on Economic Affairs has approved the C…

  • Open

    Marketing Development Assistance (MDA) S…

    Marketing Development Assistance (MDA) Scheme is under opera…

Investible Projects

Investment Opportunities in Leather

  • Projects

    3

  • Opportunity

    $880.1 mn

  • Promoters

    1

  • District

    3

  • Private Projects

    0

  • Govt. Projects

    3

open

$293.4 mn

Leather & Footwear Cluster Project [Muzaffarpur]

State (s) Bihar
open

$293.4 mn

Perambur Leather & Footwear Cluster Project [Chennai]

State (s) Tamil Nadu
open

$293.4 mn

Leather & Footwear Cluster Project [Kolkata]

State (s) West Bengal

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 link

  • What 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.

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