Indian leather industry's global import share at 2% as committee highlights raw material shortages
The Standing Committee on Commerce examined the current analysis and future prospects of the Indian leather industry to identify structural challenges and recommend measures to improve competitiveness, exports, and sustainability.
Ministry of Commerce and Industry (specifically the leather sector, MSMEs, and the Council for Leather Exports); affects leather manufacturers, footwear producers, and workers in the sector.
- Shortage of raw hides and skins and poor quality of cattle hides due to lack of organized animal husbandry; recommended improving collection infrastructure, workforce education, and reducing import dependency.
- Need for specific financial assistance to MSMEs; recommended assessing funding gaps, providing low-interest credit, and faster implementation of the Focus Product Scheme for Footwear and Leather Sector.
- India's share in global import of leather and footwear was about 2% in 2023; recommended leveraging existing Free Trade Agreements (FTAs), negotiating new FTAs with EU and USA, and increasing participation in international trade events.
- Urgent need for increased Research and Development (R&D) facilities; recommended establishing design/testing centers, expanding training institute capacity, and supporting advanced technologies like 3D printing and automation.
- Dependence on foreign technical manpower hampering productivity; recommended greater investment in skilling, international collaborations, and adopting a 'training of trainer' approach.
- Lack of data due to fragmented industry structure; recommended establishing central portals under the Council for Leather Exports and Leather Sector Skill Council for real-time tracking of upskilling.
- Challenges in adopting green practices including lack of eco-friendly machinery and insufficient Common Effluent Treatment Plants (CETPs); recommended establishing treatment plants and providing incentives for eco-friendly chemicals.
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Document details
| Official title | Indian Leather Industry: Analysis and Prospects |
| Source body | Parliamentary Standing Committee reports (via PRS Legislative Research) |
| Reference number | indian-leather-industry-analysis-and-prospects |
| Status | closed (committee_report) |
| Year | — |
| Closing date | — |
| Documents | 1 |