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2018-12-28

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Indian Economy
www.pib.nic.in

Ministry of Commerce & Industry

Growth of Leather Industry

Posted On: 27 DEC 2018 11:44AM by PIB Delhi

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 3rd Largest 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.

 

***

MM/SB



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