Indian Leather Industry – An overview
- 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 composition of export from leather sector undergone a structural change, from an exporter of raw hides and skins to that of value added products. Today, the finished products constitute around 80% of the total export basket.
- India is the largest livestock holding country, endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population.
- The leather industry provides employment to 2.5 million people. Women employment is predominant in leather products sector.
- The industry’s annual production value is estimated to be over US$ 7 billion. The export value during 2008-09 is US$ 3.59 billion.
- India accounts for a share of 2.78% in the global leather import trade of US$127.73 billion during 2007.
- India is the second largest global producer of footwear, accounting for 13% of global footwear production.
- The major production centers are located at Chennai, Ambur, Ranipet, Vaniyambadi, Bangalore, Delhi, Agra, Noida, Jallandhar, Karnal, Kanpur, Kolkata, Mumbai etc.
India’s export of leather and leather products for Five Years:
(Value in Million US$)
|
2004 -05 |
2005 -06 |
2006 -07 |
2007 -08 |
2008 -09 |
Finished Leather |
607.73 |
636.27 |
724.00 |
807.19 |
673.37 |
Footwear |
910.77 |
1045.24 |
1236.91 |
1489.35 |
1533.66 |
Leather Garments |
329.44 |
333.30 |
309.91 |
345.34 |
426.15 |
Leather Goods |
585.72 |
660.17 |
706.28 |
800.46 |
873.30 |
Saddlery & Harness |
61.71 |
77.52 |
82.33 |
106.18 |
92.15 |
Total |
2495.37 |
2752.50 |
3059.43 |
3548.51 |
3598.64 |
% Growth |
12.58% |
10.30% |
11.15% |
15.99% |
1.41% |
|
Source: DGCI&S
Major Export Destination
The major markets for Indian leather products are Germany with a share of 14.12%, Italy 12.82%, UK 11.48%, USA 9.98%, Hong Kong 6.61%, Spain 6.09%, France 6.14%, Netherlands 4.13%, UAE 2.38% and Australia 1.55%. These 10 countries together accounts for nearly 75.30% of India’s total leather products export.
The Government of India had identified the Leather Sector as a Focus Sector in its Foreign Trade Policy 2004-09 in view of its immense potential for export growth prospects 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, the Indian leather industry aimed to augment the production, thereby enhance export to US$ 7.03 billion by 2013-14, and resultantly create additional employment opportunities for overall one million people
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