India’s Role in the Global Leather Trade

India’s Role in the Global Leather Trade

India stands as a powerhouse in the global leather industry, underpinned by abundant raw materials, skilled labor, and robust support systems. From rural artisans to mega industrial clusters, the leather sector forms a foundational pillar of Indian manufacturing and exports.

Leather Export From India: Global Market Statistics

1. A Global Leader in Leather Production & Exports

  • Raw Material Advantage: India hosts 20% of the world’s cattle and buffalo population and about 11% of goats and sheep, securing a strong raw material base .

  • Production & Rank: It accounts for 13% of global leather production and is the 2nd largest producer and consumer of leather footwear, and the 4th largest exporter of leather goods globally.

  • Export Value: Leather exports stood at US$ 5.26 billion in FY 2022–23, with the footwear segment alone worth nearly US$ 1.68 billion.

2. Key Export Segments & Destinations

  • Top Export Categories:

    • Footwear leads the pack (~42.6% of exports).

    • Leather garments, saddlery, and accessories,  leather handbags ,luxury handbags , black leather handbags, leather tote bags for women, sling bag for women leather men's leather bifold wallet , genuine leather wallet for men also contribute significantly, making India the 2nd‑largest exporter in garments and 3rd in saddlery & harness.

  • Major Markets:

    • USA: Largest importer (~19–22% of India’s leather exports).

    • Germany, UK, Italy, and others also rank high among importers.

3. Regional Powerhouses & Infrastructure

  • Tamil Nadu is the heartland of the leather industry:

    • Holds 60% of India’s tanning capacity and 38% of leather footwear/garment output.

    • Contributes nearly 50% of India’s leather exports, valued around US$ 3.3 billion .

    • Vellore alone accounts for over 37% of the country’s leather exports.

  • Kolkata Leather Complex (Bantala):

    • Tackles 22–25% of India’s entire tanning output through centralized infrastructure and eco‑effluent management.

4. Research & Innovation

  • The Central Leather Research Institute (CLRI) in Chennai, the world’s largest leather research institute, drives innovation in tanning, environmental compliance, design, and workforce training.

  • It has also developed unique technologies like an Indian Footwear Sizing System (2023) and bio‑dressing for burns (2003).

5. Government Support & Programs

  • The Council for Leather Exports (CLE), established in 1984, promotes exports, provides market linkages, and acts as liaison between industry and government.

  • Schemes like IFLDP (₹1,700 crore budget till 2026) and a proposed PLI of ₹2,600 crore aim to enhance production, job creation, and value addition.

  • These policies target infrastructure, branding, design, skill development, and cleaner technologies.

6. Challenges and Sustainable Pathways

  • Environmental Concerns: Tanning produces hazardous waste; many units lack proper treatment facilities, exposing workers to health risks.

  • Declining Exports: FY 2023–24 saw an almost 10% drop due to weak demand from key markets; Tamil Nadu was particularly impacted (~18% decline).

  • Innovation Lag: Slow adoption of R&D and competition from eco‑friendly alternatives like vegan leather challenge incumbents.

7. Geopolitics, Trade Deals & Competitive Landscape

  • A new India–UK FTA promises major gains: it eliminates tariffs on leather and footwear, boosting Tamil Nadu’s exports; UK could become an even stronger market

  • US Tariff Threats: A pending 25% tariff on Indian leather goods could dent exports from Kolkata clusters (~₹2,000 crore to US) and make Vietnam/Bangladesh more competitive.

  • Diversification: A shift toward non‑leather footwear is underway, especially in Tamil Nadu—leveraging China+1 strategies and foreign investments from Taiwanese giants such as Shoetown and Feng Tay.

8. Digital Revolution & Handicraft Brands

  • E‑commerce & Social Media are empowering artisans and MSMEs—brands now gain global visibility and export opportunities via Instagram, Facebook, and marketplaces.

  • Geographical Indications: Santiniketan Leather Goods, with its artisanal heritage and unique dyeing techniques, exemplifies how regional crafts can command export niche appeal.

Conclusion

India’s global leather trade success is rooted in its raw materials, skilled labor, clusters, research institutes, and government support. Yet, to maintain momentum, it must tackle environmental challenges, innovate with sustainable alternatives, and strategically leverage trade agreements and digital platforms. The path ahead lies in resilience, modernization, and global branding of “Made in India” leather.

Frequently Asked Questions (FAQ)

Q1: Where does India rank in global leather production and exports?

  • India accounts for ~13% of world leather production, is the 2nd largest producer of leather footwear, and is the 4th largest exporter of leather goods globally.

Q2: Which Indian states lead leather production and exports?

  • Tamil Nadu (esp. Vellore region) dominates, contributing 60% of tanning capacity, 38% of footwear/garments output, and nearly half of India’s leather exports. West Bengal’s Kolkata complex also plays a central role.

Q3: How many people does the leather industry employ?

  • Around 4.42 million people, with approximately 30% women workers—particularly in rural areas.

Q4: What challenges does the sector face?

  • Key issues include environmental pollution, declining global demand, GST and regulatory burdens, low innovation, and competition from synthetic alternatives .

Q5: What is the impact of the India–UK FTA on leather exports?

  • The FTA, approved in July 2025, removes tariffs on leather and footwear, promising to boost exports, especially from Tamil Nadu.

Q6: Are there innovations helping small artisans and clusters?

  • Yes. CLRI leads R&D; digital platforms expand artisan reach; GI tags like Santiniketan Leather amplify heritage crafts .

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