INDIAN LEATHER INDUSTRY

 COUNCIL FOR LEATHER EXPORTS

INDIAN LEATHER INDUSTRY – OVERVIEW, EXPORT PERFORMANCE & PROSPECTS

• The Leather 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 reached a value of US$ 5.69 billion during 2018-19.

• The leather 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 producer of footwear in the world, producing about 2.41 billion pairs (2017).

• India is the second largest exporter of leather garments and third largest exporter of Saddlery & Harness 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 2.41 billion pairs (2017). India is also the second largest consumer of footwear after China, with a consumption of 2.49 billion pairs.

Footwear (leather and non-leather) export accounts for about 45.48% share in Indian leather and footwear industry’s export (2018-19). The Footwear products export mix is:  Gents 58%, Ladies 30%, Children 9% and others 3%.

• Leather Garments Sector – India is the second largest global exporter, next only to Italy, with a global market share of about 17%. Accounts for 8.23% share of India’s total export from leather sector (2018-19).

• Leather Goods & Accessories Sector including Saddlery & Harness – India is the fifth largest global exporter. Accounts for about 28% share of Indian leather and footwear industry’s total export.

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS FOR 5 YEARS

                                                                                               Value in US$ Mn

% SHARE OF LEATHER & LEATHER PRODUCTS FY 2018-19

Major Markets:

• The major markets for Indian Leather & Leather Products are USA with a share of 15.70%, Germany 11.58%, UK 10.50%, Italy 6.48%, France 5.68%, Spain 4.54%, UAE 3.97%, Netherlands 3.42%, Hong Kong 3.34%, China 2.60%, Poland 2.02%, and Belgium 2.00%.
• These 12 countries together accounts for nearly 71.84% of India’s total leather, leather products and footwear export.
• European Union accounts for 54% of India’s total export of leather and leather products.

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

IN TOP 12 COUNTRIES IN US $ MN FY 2018-19

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

                                                                                           (Value in million USD)

Source: DGCI&S

FUTURE OUTLOOK:-

The Government of India had identified the Leather Sector as a Focus Sector under ‘Make in India’ programme keeping in view of its immense potential for growth and employment generation. Accordingly, the Government is also implementing various Special Focus Initiatives under the Foreign Trade Policy for the growth of leather sector. 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.