Leather industry in India
The total production of the Indian leather industry stands at USD 11 Billion with great potential for exports and a huge domestic market. Exports have grown from USD 1.42 Billion in 1990-91 to an all-time high of USD 6 Billion in 2013-14. Exports are projected to grow at 24% per annum over the next five years. The domestic market is expected to double in the next five years. Comparative advantages in cost of production and labour costsUSD 6 Billion worth of exports in 2013-14.The industry accounts 10% of the world’s leather production. There is 24% growth projected in the next five years. 55% of workforce below 35 years of age.[1] A strong base for raw materials – India is endowed with 21% of the world’s cattle and buffalo and 11% of the world’s goat and sheep population. India produces 2 Billion sq. feet of leather, accounting for 10% of the world leather requirements. There is no import duty on the import of raw hides and skins, semi-processed leathers like wet blue, crust leather or finished leather. Imported leather too is now available to the industry at competitive prices.
Growth
High growth potential on exports, the ready availability of leather, the abundance of essential raw materials and rapid strides in the areas of capacity modernization and expansion, skill development and environment management, coupled with a favourable investment climate has made the Indian leather industry a favourable investment destination. With 55% of the workforce below the age of 35, the Indian leather industry has one of the youngest and most productive workforces. The Indian government has put in place an array of measures for skill development and skill upgradation of the workforce. Under the National Skill Certification and Monetary Reward Scheme of the National Skill Development Corporation, financial assistance is given for the training and certification of both the existing workforce and new workers in the leather industry. 20,000 workers have been enrolled under this scheme for training and certification, as of August, 2013. The Human Resources Development sub-scheme under the Indian Leather Development Programme (ILDP) implemented by the Department of Industrial Policy and Promotion, aims to provide skill development training to the unemployed for placement in the leather industry while upgrading skills of the existing workforce at the shop floor level and imparting training to trainers. More than 50,000 youth have already been trained and placed in the industry in the last 100 days with 1,44,000 more expected to be trained annually. The Footwear Design and Development Institute (FDDI) at Kanpur has established itself as the premier training institute for the provision of skilled manpower in the leather industry. It has 53 training centres across the country including eight branches. Another four branches are being set up.
Technology
The entire leather product sector is de-licensed, facilitating expansion on modern lines with state-of-the-art machinery and equipment. Under the IDLS sub-scheme of ILDP, 30% grant is provided on the cost of plant and machinery for Micro and Small units and 20% for other units, with a ceiling of INR 20 Million for each product line. Under the MLC sub-scheme of ILDP, 50% grant with a ceiling of INR 1.25 Billion based on size is provided for the establishment of Mega Leather Clusters to boost infrastructure facility and support services for production and export. Under the Leather Technology, Innovative and Environmental Issues sub-scheme of ILDP, assistance is provided for up to 50% of the project cost with a ceiling of INR 500 Million for upgradation/installation of Common Effluent Treatment Plants (CETPs) to address environmental pollution caused by leather units.
Sectors
The largest centre of the industry is in Jajmau suburb of Kanpur. The major production centers for leather and leather products in India are located in Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Vellore,Melvisharam Pernambut, Trichy, Dindigul and Erode ; West Bengal – Kolkata. ; Uttar Pradesh – Kanpur, Unnao, Ramaipur, Agra, Noida, Saharanpur; Maharashtra – Mumbai ; Punjab – Jallandhar ; Karnataka – Bangalore ; Telangana - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula, Karnal and Faridabad; Delhi; Madhya Pradesh – Dewas ; Kerala– Calicut and Ernakulam / Cochin.
Exports
The major markets for Indian Leather & Leather Products are Germany with a share of 15.01%, UK 11.15%, Italy 10.85%, USA 9.02%, Hong Kong 7.38%, France 6.25%, Spain 6.08%, Netherlands 4.07%, Belgium 2.32%, China 2.54%, U.A.E.2.24%, Australia 1.39%, These 12 countries together accounts for nearly 78.30% of India’s total leather& leather products export. India’s Export of Leather & Leather Products to the European Union touched US$ 3116.52 mn in 2011-12, accounting for a share of 64.01% in India’s total leather export trade of US$ 4868.71 mn.[2]
References
- ↑ http://makeinindia.com/sector/leather/
- ↑ leatherindia.org
| ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||