|The Leather Industry scenario in India
The leather industry occupies a place of prominence in the Indian economy in view of its massive potential for employment, export & growth. Exports of leather and leather products have gained momentum during the last 4 decades. Due to this growth, the Indian leather industry has attained recognition in the international market besides occupying a place of pride among the export earners of the country. Today, our potential has grown adequately to
cater to 10% of the worlds market demand. As a direct result of this, the government is encouraging the leather export industry by offering various incentives for setting up units to achieve this growth.
The Indian leather industry is the 8th largest foreign exchange earner for India. By the year 2012, it is likely to achieve foreign exchange earnings of approximately $7 billion. the leather export sector constitutes more than 7% of the country’s export basket. Based on the information received from the Indian Brand Equity Foundation for the year 2004-2005, shoe and sole exports contribute to almost 32% of India’s entire leather product turnover.
India has grown from the role of a raw material exporter to an important supplier of well finished leather goods. The policies adopted by the Indian government have been highly beneficial and key in this growth spurt. In the wake of globalization of the Indian economy, supported with liberalized economic and trade policies since 1991, the industry is poised for further growth to achieve greater share globally.