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LEATHER

FDI In Leather Sectors

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 billion 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 earner for the country.

India has an abundance of 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, 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.

 

 

  • 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 $5.74 bn during 2017-18

Footwear export accounts for 49.23% share. Product mix with gents (55%), followed by ladies (35%) and children (10%). With an annual production of 2257 million pairs, a huge domestic retail market exists with 2021 million pairs (90%)

The leather garments industry has an annual production capacity of 16 million pieces and accounts for 9.04% share of India’s total leather export

Leather good and accessories industry including saddlery and harness accounts for 23.79% share for leather goods and around 2.7% for saddlery and harness with an annual production capacity of 63 million pieces of leather articles, 52 million pairs of Industrial gloves and 12.5 million pieces of harness and saddlery items

  • 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
  1. Sep 2017: $100 mn Brazilian firm Grupo Priority brings premium shoe brand to India. Grupo Priority has launched its flagship men’s shoe brand West Coast in India in a tie-up with the distribution arm of footwear retailer Metro Shoes.
  2. Feb 2017: Founder kids footwear brand Teddy Toes aims to make luxurious international designs easily available in India, and at affordable prices.

  • $193.7 mn FDI in leather sectors, leather goods and pickers during April 2000 – March 2019
  • $54 mn FDI in leather industry in India was received during April 2014 - March 2017
  • 100% FDI inflows to leather and leather goods is allowed under automatic route

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