India’s leather and footwear export sector is poised for a strong surge in the 2024 fiscal year, with projections pointing to a 12% growth, reaching a total of $5.3 billion. The positive outlook is driven by robust global demand, especially from major markets such as the United States and the United Kingdom.
Growing global demand fuels export expansion
According to Rajendra Kumar Jalan, Chairman of the Council for Leather Exports (CLE), the growing interest in Indian leather goods, particularly from international buyers, has resulted in healthy order books for the coming months. “Several foreign companies, especially from the US, are keen to set up manufacturing facilities in India,” he said, reinforcing the global confidence in the sector.
Sector’s contribution to employment and economy
The Indian leather industry, which employs over 4.2 million people, continues to be a significant player in the nation’s economy. With a total turnover of $19 billion, including $5 billion from exports, the sector represents a vital economic engine. The government’s push for initiatives such as the Production-Linked Incentive (PLI) scheme could further enhance growth, potentially adding 700,000 to 800,000 new jobs.
Ambitious growth plans for the leather industry
Looking ahead, Jalan highlighted the sector’s ambitious growth trajectory, predicting a total turnover of $47 billion by 2030, with domestic production accounting for $25 billion and exports reaching $13.7 billion. To help meet these targets, he has called on the government to extend the PLI scheme to the leather industry and to eliminate the 20% export duty on wet blue and crust leather, which would help Indian leather products remain competitive globally.
Opportunity to strengthen brand India
Industry leaders, such as Yadvendra Singh Sachan, Managing Director of Growmore International Ltd, are optimistic about the continued growth of the Indian leather sector. “The US and EU markets show healthy growth rates, and we need to focus on scaling up our industry and strengthening the branding of Indian leather goods both domestically and internationally,” Sachan emphasized.
India’s rising influence in the global leather market
India’s leather sector continues to evolve, and with the right policy measures, it can strengthen its foothold in the global market. The sector not only provides significant employment but also plays a crucial role in the country’s export growth, reflecting India’s increasing prominence as a manufacturing hub in the global economy.
