Leather industry in India is spread over organized as well as unorganized sector. The small scale, cottage and artisan sectors account for over 75% of the total production. Though traditionally and in the beginning, the Indian leather industry has been an exporter of tanned hides and skins, in the early seventies itself, it set its sights on becoming a major player in the leather products segments. The industry uses primarily indigenous natural resources with imports to full fill its exports
Recognizing the need for proper development of leather sector, the Govt.of India constituted a Working Group on Leather and Leather Goods Industry for the betterment of the industry. The Report of the Working Group, which comprehensively dealt with every aspect of this sector, has already been implemented. Based on the recommendations of the Working Group, the various departments are in the process of formulating schemes for integrated development of leather sector besides modernization of major segments of leather industry viz. tanneries, footwear, footwear components and leather goods & garments.
Leather Industry has been identified as one of the thrust areas of exports. The Leather Industry with an annual turnover of over US$ 10 Billion, has increased manifold over the past decades and touched US$ 6 Billion of export. The cumulative annual growth rate of about 8.55%( 5 years). The Leather and Leather Products industry in India employs the large number of work force from weaker section of the of the society. Women employment is predominant in leather products sector with about 30% share of the total work force.
Footwear sector has been identified as an area of extreme focus. India is the second largest producer of footwear and leather garment in the world.
Leather Goods and Accessories Sector including Saddler and Harness is fifth largest global exporters
Backed by a strong raw-material base and a large reservoir of traditionally skilled and competitive labour force, the Leather Industry has an affluence of raw materials with the added strength of skilled manpower, innovative technology from the world class Institutional and support, increasing industry compliance to international environmental standards, the dedicated support of the allied industries and the Indian leather industry has made significant jump.
The major markets for Indian Leather and Leather Products are Germany,USA,U.K,Italy,France, Hong Kong, Spain, Netherland, China,Denmark, UAE and Belgium.