Leather, a promising sector for the Make in India program

As a 12-billion-dollar sector and the second top producer of leather footwear and garments all over the world, India's thriving leather industry is expected to grow even further with the help of the Make in India program.

As one of the 25 focus sectors of the program, the industry is expected to entice more investors with accessible industry information and less time-consuming business procedures and license applications. The industry is one of the top potential sectors of the program given the availability of leather in India, the young workforce (55 percent is below the age of 35) and a projected 24-percent growth per annum over the next five years.

Launched in 2014, the Make in India program was set up by the Indian government to transform India into a global manufacturing hub. This February and March, international leather fairs have also been set up by the government to showcase products and discuss trends from the leather product industry.

India leather product exports

Based on Developing Country Sourcing's report on India's leather products, India's exports have grown steadily over the past few years. From 2012 to 2013, it had an export value of 5.02 billion dollars, which rose to 5.91 billion dollars from 2013 to 2014. Current markets of the industry include the US, UK, Italy and Germany; however, the industry is seeing South Africa, Australia and Japan as upcoming and promising export markets.

Competitive advantages

One of the most significant advantages of India's leather product industry is its access to raw materials. India produces about two billion square feet of leather annually, since it takes up 21 percent of the world's cattle and buffalo and 11 percent of the world's goat and sheep population.

Leather product suppliers interviewed for the report are also staying competitive by constantly using quality materials and developing new designs and upgrading equipment.

Challenges

Intense competition with exporters offering lower prices from other countries, particularly China, is affecting local leather producers. Power failures in certain areas are also affecting production schedules of companies. Skill-wise, many Indian firms still need to formally train their workers to enable them to keep up with international standards.

This article and its contents are provided by the Hinrich Foundation, a partner of Global Sources in promoting trade across Asia. The products and the suppliers featured in this article are export assistance program beneficiaries of the Hinrich Foundation.

See a comparison table of leather product suppliers on GlobalSources.com