Leather Industry of India
The leather industry in India holds a very prominent place in the Indian economy. The leather and leather products industry is one of the oldest manufacturing industries in India. The Indian leather industry provides employment to around 2.5 million people in the country and has an annual turnover of approximately US$ 5,000,000.
The industry includes a massive possibility of providing more employment, growth, and exports. Recently, the exports of leather and leather products have gained massive momentum. The exports of Indian leather goods have registered phenomenal growth. This is due to the fact great emphasis continues to be positioned on the planned growth and development of the leather industry and also at the perfect utilization of available recycleables.
Over the years the leather industry in India has undergone drastic change from as being a mere exporter of raw materials in early 60′s and 70′s to now becoming an exporter of finished, value-added leather products. The key reason behind the transformation may be the several policy initiatives taken by the government of India. The proactive government initiatives have yielded quick and improved results. Because of the government efforts today, the Indian leather industry has attained a prominent place in the Indian export and has made the industry one of the top 7 industries that earns foreign exchange for the country.
Since India adopted the globalization and liberalized economic policies in 1991, the leather industry has flourished consistently in several ways and it has contributed heavily towards the Indian exchequer. Though the industry has developed, it still has great possibility of more growth and investments. Purchasing Indian leather industry is particularly advantageous because the industry is poised to grow further and achieve a major be part of the worldwide trading market.
The federal government of India in its Move Policy for 2000-2009 has identified the leather sector like a focus sector in view of its immense possibility of export growth and generation of employment generation prospects.
Investment opportunities in the leather industry lie in different segments associated with the, including tanning and finishing of leather products, manufacturing of leather garments, manufacturing of leather footwear and footwear parts, and manufacturing of leather goods, for example harness and saddlery amongst a host of other opportunities.
Amongst all of the industries mentioned previously the footwear industry particularly holds greater potential for investments in India. India produces approximately 700 million pairs of leather footwear every year and accounts for an 18% share from the total Indian leather export.
After footwear manufacturing of leather goods promise great investment opportunity. Manufacturing of leather products, for example wallets, travel wares, belts, and handbags offer great returns on investment.
India is one of the best destinations on the planet for purchasing the leather industry because India is endowed with abundant raw materials required for the to grow. India has a huge population of cattle. India accounts for 21% from the world’s cattle and buffalo and 11% of the world’s goat and sheep population. Apart from the easy accessibility to recycleables, investors can enjoy a simple and abundant supply of skilled manpower, world-class technology, competent and favorable environmental standards, and also the devoted support of allied industries.