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Growth of Leather Industry 

Leather Industry occupies a prominent place in the industrial map of the country. India is the second largest producer of footwear, 2nd largest exporter of Leather Garments, 5th largest exporter of Leather Goods and 3rdLargest Exporter of Saddlery and Harness items. Uttar Pradesh and Maharashtra are major production and export centres of leather, leather products and footwear.  According to membership records of Council for Leather Exports (CLE), Uttar Pradesh contributed a share of 31.35% in total exports of leather, leather products and footwear from the country while Maharashtra contributed 2.28% during 2016-17.

As per information received from Council for Leather Exports (CLE), the manufacturing based export of leather, leather products and footwear from India increased from USD 5.65 billion in 2016-17 to USD 5.74 billion in 2017-18, growing by 1.65%. The exports showed decline of 9.84% and 3.56% in Dollar Terms during 2015-16 and 2016-17 respectively. However, during the current year, exports showed increase of 5.25% in rupee terms as compared to the same period last year are:

India’s Exports Leather and leather products – Value in US$ Mn

             
Products 2015-16 2016-17 2017-18 % change

2016-17

% change

2017-18

 
FINISHED LEATHER 1046.45 886.39 874.23 -15.30% -1.37%  
LEATHER FOOTWEAR 2147.98 2128.87 2193.61 -0.89% 3.04%  
FOOTWEAR COMPONENTS 284.34 298.69 335.24 5.05% 12.24%  
LEATHER GARMENTS 553.11 535.66 518.96 -3.15% -3.12%  
LEATHER GOODS 1370.04 1316.63 1365.33 -3.90% 3.70%  
SADDLERY AND HARNESS 146.38 142.35 155.88 -2.75% 9.50%  
NON-LEATHER FOOTWEAR 306.74 338.21 296.68 10.26% -12.28%  
TOTAL 5855.04 5646.8 5739.93 -3.56% 1.65%  
Source : DGCI&S  
   

(Value in Million Rs)

          CATEGORY APRIL –  OCTOBER APRIL – OCTOBER % VARIATION
    2017 2018  
  FINISHED LEATHER 33924.05 32289.59 -4.82%
  LEATHER FOOTWEAR 81199.38 89474.92 10.19%
  FOOTWEAR COMPONENTS 12429.8 13598.43 9.40%
  LEATHER GARMENTS 20563.32 20477.74 -0.42%
  LEATHER GOODS 50951.05 55557.33 9.04%
  SADDLERY AND HARNESS 5848.60 6670.5 14.05%
  NON-LEATHER FOOTWEAR 12589.74 10860.91 -13.73%
  TOTAL 217505.94 228929.42 5.25%

 

The major reasons for the decline in exports are due to external factors namely recession in the major market of European Union (to which about 55% of exports are directed), instability in middle-east, stiff competition from Polyurethane Garments to the Leather Garments segment, decrease in demand of non-leather footwear in African countries due to emergence of production centres in those countries and competition from China and decrease in global imports of finished leather.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha.

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