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Leather and Leather Products sector is one of the important sectors among the various

constituents of the manufacturing sector in India, mainly due to its contribution towards
employment. It is one of the unique sectors which have the advantage of the both value
addition and export potential. It also contributes significantly to total manufacturing
output and exports from the country.
Leather industry has massive potential for employment, output growth and export. The
sector is one of the top eight foreign exchange earners worth over Rs. 10000 crores per
annum and accounts for 3% of the global leather-related trade of Rs. 387200 crores. An
estimated 15% of total purchase of leading global brands in footwear, garments, leather
goods & accessories in Europe, and 10 percent of global supply is outsourced from
India. Leather industry has undergone dramatic transformation in the recent years from
a mere exporter of raw materials in the sixties to that of value added finished products in
the nineties.
The Indian leather industry comprises of both organized and unorganized and
organized sectors.
The organised manufacturing sector broadly consists of tanning and dressing of leather
manufacture of luggage, handbags saddlery, harness and footwear. Currently
unorganized sector plays a dominant role in the entire production. The small scale,
cottage and artisan sectors account for over 75 per cent of the total production and
majority of them belong to unorganized sector. Though footwear is produced by both
large and small scale sector, the small scale sector has almost 90 per cent share in the
total production of footwear in India.
Indias leather and leather products exports have been growing at 6.80% per annum
during 1991-92 to 2007-08. Major export destinations are Germany, USA, UK, Italy and
Hong Kong. Indias exports of finished leather have been growing at the rate of 6.42%
during 1993-94 to 2007-08. Hong Kong is one of the major export destinations of
finished leather products. Hong Kong cornered the largest share (42%) of Indias
finished leather export in 2007-08.

Leather Footwear:
Indias exports of leather footwear have been growing at the annual rate of 3.50%
during 1991-92 to 2007-08. The leading importer of Indian leather footwear is UK
followed by Germany, USA, Italy, etc.
Leather Goods: Indias exports of leather goods have been decreasing at the rate of
2% per annum during 1991-92 to 2007-08 period. Germanys position as the major
destination of Indias leather goods exports during the early 90s has changed
drastically. UK, Spain, Netherlands, Australia, UAE and Belgium have all increased their
imports from India.

Leather Garments: Leather garments exports from India have been decreasing at the
annual rate of 2.46% during 1995-96 to 2007-08. Germany is the leading importer of
leather garments during 2007-08. The share of Belgium and Canada has increased
over the years. Leather garments exports to Germany, Italy, USA, France, UK and
Netherlands declined over the years.

Leather Footwear Components: Indias exports of leather footwear components have

been decreasing at an annual rate of 2.27% during 1995-96 to 2007-08. Indias exports
of leather footwear components have increased to Spain, Portugal, France, Switzerland,
Slovakia, Austria and Hungar, Italy, Germany and France are the major importers of
Indian Leather Footwear components.

Saddlery and Harnesses: Indias exports of saddlery and harnesses have been
increasing at the annual rate of 8.96% in the period of 1995-96 to 2007-08. However,
the export shares of USA, Germany, France, Netherlands and Australia have been