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FDI In Leather Sectors

The Leather industry in India accounts for around 13% of the world's leather production of hides/skins and handles a robust annual output of about 3 billion sq. ft. of leather. In addition, 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 abundant raw materials with access to 20% of the world's cattle and buffalo and 11% of the world's goat and sheep population. The Leather industry is an employment-intensive industry providing jobs to more than 4 million people, mainly from the weaker sections of the society. Women employment is predominant in the 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.

For every $0.2 million invested in the leather business, 250 jobs are created.

The industry employs 4.4 mn people in India.

  • 2.6 Bn (USD)

    Footwear exports

  • 429 mn (USD)

    Leather garments exports

  • 4.44 mn

    People employed

  • 524 mn (USD)

    Finished leather exports

  • 1

    2nd largest producer of footwear and leather garments in the world

  • 2

    2nd largest exporter of leather garments in the world

  • 3

    5th largest exporter of leather goods & accessories in the world

  • Exports of leather and leather products touched $3.67 bn during April 2020- Feb 2021.
  • Footwear export accounts for a 45.28% share. Product mix with gents (55%), followed by ladies (35%) and children (10%).
  • The global athletic footwear industry is expected to reach USD 114.8 billion by 2022, with a CAGR of 2.1 percent from 2016 to 2022.
  • The leather garments industry accounts for a 14.61% share of India’s total leather export.
  • The leather goods and accessories industry, including saddlery and harness, accounts for a 24.84% share for leather goods and around 4.5% for saddlery and harnesses.
  • 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
  • The central government has granted December 2020- The Mega Leather Cluster project in Kanpur the green light. The project would cost Rs 5,850 crore and is expected to generate 50,000 jobs.
  • June 2020- Von Wellx, a German footwear maker, has moved production from China to India. In partnership with Iatric Industries Pvt Ltd, the manufacture will take place in Agra, Uttar Pradesh.

  • $215.21 mn FDI in leather sectors, leather goods, and pickers during April 2000 – march 2021.
  • $54 mn FDI in the leather industry in India was received during April 2014 - March 2017.
  • 100% FDI inflows to leather and leather goods are allowed under automatic route.

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