The Rise And Growth Of The Indian Leather Industry

By Author: aniketdicosta
Total Articles: 139
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Recently, the Indian leather industry experienced a boom. It stood to gain a bigger share of the global market, with leading brands from US and Europe either importing or planning to source leather and leather products from India.

If one is to believe reports by the Department of Industrial Policy and Promotion of various industries, the leather industry has been developing rapidly. India has around 3% share in the global trade of leather in comparison to China's 20%. In order to promote the rapid advancement of this industry, the Government of India has been constantly making efforts to show improvements.

Leather industry is the 10th largest sector in the Indian manufacturing sector, providing employment to 2.5 million people and weaker sections/minorities, of which about 30 % are women. Also, due to its considerable export revenue, prospects and expansion, this sector holds a prominent place in the Indian Economy. It is also the largest manufacturing sector and its products are considered amongst the top ten export earners ...
... of the country.

Leather garments and other leather goods in India are among the major production and thus have a lot of demand even overseas. India has colossal natural resources of raw hides & skins due to which the export of leather products has undergone a structural transformation resulting in increased exports of various leather products.

Government Programs & Policies

The government has tried its best to incorporate various methods and policies in its five yearly programs for the revival of the leather industry. Under the rule of licensing and reservations all manufacturing items in the leather sector from the SSI list in 2001, had been reserved. Initiatives were also taken by the government to increase the export of value added products and the Central Government from its side took various policy support measures.

Some of them include:

-> Improving duty free entitlement from 1% to 3% for leather products and footwear.

-> CVD exclusion on lining and interlining materials, customs.

-> Excusing duty of machinery and equipments for sewage treatment plants.

-> 5% discount on import duty extended to certain additional machinery.

-> Support by International marketing programme through MDA and MAIS

-> Through the means of shaping various inter ministerial committees.

Throughout the Five Year Plan 400 crores of rupees was made obtainable for various schemes under the Indian Leather Development Programme which included the integrated development of Leather Sector and the Infrastructure strengthening of Leather Sector. Numerous schemes for the support of Rural Artisans namely the INTECHMART and Saddler development comprised of execution of schemes, which were eventually going to be implemented from the 9th Five Year Plan.

Government: Schemes

The government introduced various proposals for the 11th Five Year Plan which were basically strategies focusing on achieving US Dollar seven Billion export earnings by the end of XI five year plan. Augmenting and increasing equipments like raw hides and skins so as to diminish imports of the same and tackling issues relating to the environment to make the leather units meet stern environmental standards were also part of the strategies; lastly, it was proposed that training facilities for dealing with the demands of the industry facing a sharp shortage of skilled manpower, be started.

Government undertaking

The government had got itself involved in the development of the leather industry to a considerable extent. It was indeed very optimistic about its various policy measures and its role in the upgradation of this sector.

Yet it was about time that the government got itself involved into deeper problems that the leather industry was still facing.

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