INDIAN LEATHER INDUSTRY

 

COUNCIL FOR LEATHER EXPORTS

INDIAN LEATHER INDUSTRY – OVERVIEW, EXPORT PERFORMANCE & PROSPECTS

 

  • The Indian Leather, Leather Products and Footwear Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the Country.
  • The export of footwear, leather and leather products from India was to the tune of US $ 3.68 billion during 2020-21.
  • The industry is bestowed with an affluence of raw materials as India is endowed with 20% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries.
  • The leather industry is an employment intensive sector, providing job to about 4.42 million people, mostly from the weaker sections of the society. Women employment is predominant in leather products sector with about 30% share.
  • India is the second largest exporter of leather garments, third largest exporter of Saddlery & Harness and 4th largest exporter of Leather Goods in the world.
  • The major production centers 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.

 

Strengths of Indian leather sector

 

  • Own raw material source – About 3 billion sq ft of leather produced annually
  • Some varieties of goat / calf / sheep skins command premium position
  • Strong and eco-sustainable tanning base
  • Modernized manufacturing units
  • Trained / skilled manpower at competitive wage levels
  • World-class institutional support for Design & Product Development, HRD and R & D.
  • Presence of support industries like leather chemicals and finishing auxiliaries
  • Presence in major markets – Long Europe experience
  • Strategic location in the Asian landmass

Emerging strengths

  • Design development initiatives by institutions and individuals
  • Continuous modernization and technology up-gradation
  • Economic size of manufacturing units
  • Constant human resource development programme to enhance productivity
  • Increasing use of quality components
  • Shorter prototype development time
  • Delivery compliance
  • Growing domestic market for footwear and leather articles

 

Highlights of Product Segments of Indian Leather and Footwear Industry

 

  • Tanning Sector – Annual availability of leathers in India is about 3 billion sq.ft. India accounts for 13% of world leather production of leathers. Indian leather trends/colors are continuously being selected at the MODEUROPE Congress
  • Footwear Sector – India is Second largest footwear producer after China, with Annual Production of 2.58 billion pairs (2018). India is also the second largest consumer of footwear after China, with a consumption of 2.60 billion pairs.

 

Footwear (leather and non-leather) export accounts for about 45.62% share in Indian leather and footwear industry’s export (2020-21).

  • Leather Garments Sector – India is the second largest global exporter.

     Accounts for 8.03% share of India’s total export from leather sector (2020-21).

  • Leather Goods & Accessories Sector including Saddlery & Harness – India is the fifth largest global exporter of Leather Goods & Accessories and third largest exporter of Sadldery and Harness items.

 

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS 2019-20 vis-a-vis 2020-21

 

                                                                                                   Value in US$ Mn

          CATEGORY APR – MAR APR – MAR % VARIATION % Share
  2019-2020 2020-2021   2021
FINISHED LEATHER 524.15 378.23 -27.84% 10.27%
LEATHER FOOTWEAR 2081.67 1485.55 -28.64% 40.35%
FOOTWEAR COMPONENTS 261.67 197.59 -24.49% 5.37%
LEATHER GARMENTS 429.11 295.56 -31.12% 8.03%
LEATHER GOODS 1353.74 944.31 -30.24% 25.65%
SADDLERY AND HARNESS 151.44 186.18 22.94% 5.06%
NON-LEATHER FOOTWEAR 281.97 194.16 -31.14% 5.27%
TOTAL 5083.76 3681.58 -27.58% 100.00%

 

Source : DGCI & S

                                                        

 

                                

% SHARE OF LEATHER & LEATHER PRODUCTS FY 2020-21

 

 


 

Major Markets:

 

  • The major markets for Indian Leather & Leather Products are USA with a share of 17.52%, Germany 13.08%, U.K 8.88%, Italy 6.75%, France 6.67%, Spain 4.18%, Netherlands 4.22%, U.A.E 2.17%, China 2.58%, Poland 2.34%, Belgium 2.17% and Australia 2.04%

 

  • The Top 12 countries together accounts for nearly 72.15% of India’s total leather & leather products export.

 

% SHARE OF INDIA’S EXPORTS OF LEATHER & LEATHER PRODUCTS

IN TOP 12 COUNTRIES IN US $ MN FY 2020-21


 

 

 

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS TO VARIOUS COUNTRIES FOR LAST 5 YEARS.

 

                                                                                           (Value in million USD)

COUNTRY 2016-17 2017-18 2018-19 2019-20 2020-21 %Share of 2020-21
USA 867.19 847.30 893.68 873.29 645.03 17.52%
Germany 657.37 684.41 659.18 607.44 481.44 13.08%
UK 606.18 616.41 597.30 528.84 326.98 8.88%
Italy 374.09 389.06 368.71 320.75 248.6 6.75%
France 287.74 326.38 323.02 301.07 245.42 6.67%
Spain 293.43 281.30 258.26 254.13 154.06 4.18%
U.A.E. 226.72 161.27 226.18 169.86 80.05 2.17%
Netherlands 169.00 196.98 194.43 178.68 155.42 4.22%
Hong Kong 265.60 248.07 190.31 109.16 58.48 1.59%
China 173.72 170.34 148.21 132.12 95.15 2.58%
Poland 101.06 144.47 115.02 106.78 86.26 2.34%
Belgium 104.90 114.80 114.09 112.16 80.02 2.17%
Somalia 94.12 58.82 102.24 57.94 42.42 1.15%
Vietnam 92.38 104.81 98.44 82.48 53.33 1.45%
Australia 82.66 91.16 95.36 85.15 74.95 2.04%
Portugal 67.61 68.62 68.77 58.38 44.45 1.21%
Denmark 77.22 69.35 67.39 68.36 61.24 1.66%
Korea Rep. 68.65 67.22 66.12 57.32 35.91 0.98%
Japan 63.87 71.42 65.53 59.48 45.69 1.24%
Russia 51.15 56.08 52.59 46.58 39.28 1.07%
South Africa 44.13 43.80 52.28 44.68 26.17 0.71%
Chile 41.85 44.90 48.87 39.97 31.92 0.87%
Malaysia 48.60 48.77 46.32 33.67 32.4 0.88%
Austria 27.86 46.26 43.82 46.00 27.72 0.75%
Canada 46.94 50.50 43.27 47.06 35.81 0.97%
Sweden 40.83 43.20 40.02 34.54 28.1 0.76%
Nigeria 20.29 24.75 37.53 19.26 12.79 0.35%
Indonesia 26.97 33.82 37.23 34.35 17.94 0.49%
Mexico 12.14 19.36 36.07 29.68 17.69 0.48%
Saudi Arabia 40.86 37.87 33.65 38.96 23.23 0.63%
Kenya 30.25 22.04 32.29 16.38 11.52 0.31%
Switzerland 24.83 30.37 31.41 37.17 29.5 0.80%
Slovak rep 31.48 36.44 26.61 20.29 14.48 0.39%
Hungary 28.23 24.65 24.31 20.04 20.9 0.57%
Thailand 19.82 19.82 20.20 16.99 14.92 0.41%
Bangladesh 34.98 27.59 19.84 20.42 13.51 0.37%
Finland 17.25 19.76 18.64 16.32 11.66 0.32%
Turkey 19.96 22.63 16.31 11.30 11.85 0.32%
Israel 13.24 15.87 15.86 17.13 13.46 0.37%
Cambodia 10.37 7.27 10.84 9.07 4.7 0.13%
Czech Republic 9.34 11.91 10.52 11.48 8.35 0.23%
Greece 10.16 10.28 10.46 9.61 8.25 0.22%
New Zealand 9.82 9.88 10.16 8.88 8.6 0.23%
Oman 12.29 9.32 9.46 7.46 6.68 0.18%
Sri Lanka Des 14.42 12.34 9.39 8.60 4.57 0.12%
Singapore 33.04 14.42 9.22 8.71 4.59 0.12%
Sudan 14.63 8.86 9.10 14.11 11 0.30%
Taiwan 8.97 8.07 8.44 5.84 4.38 0.12%
Norway 7.54 8.76 6.32 6.77 6.49 0.18%
Djibouti 11.19 8.56 6.28 3.94 3.13 0.09%
Others 209.98 249.40 261.02 221.90 161.09 4.38%
Total 5646.80 5740.97 5691.00 5070.55 3681.58 100.00%
Source: DGCI&S

 

FUTURE OUTLOOK:-

 

The Government of India had identified the Leather & Footwear Sector as one of the 12 Focus Sectors where India can be a Global Supplier. With the implementation of various industrial developmental programmes as well as export promotional activities; and keeping in view the past performance, and industry’s inherent strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and dedicated support of the allied industries, the Indian leather industry aims to augment the production, thereby enhance export, and resultantly create additional employment opportunities.