Indian Council of Leather Exports (CLE) along with Footwear Design and Development Agency and Central Leather Research Institute has planned to more than double the sales revenue in next five years to US $ 27 billion. Last year, leather sector reported the total sales of nearly US $ 13 billion, of which exports accounted for US $ 6.5 billion. By 2020, the export target is US $ 15 billion.
In order to attract Foreign Direct Investment, introduce new technologies, designs and concepts and showcase India’s potential to the outside world, Council of Leather Exports along with the above mentioned agencies has mapped roadshows, business-to-business meetings and conferences in different countries.
The initial round of roadshows and B2B meetings were held in China, Taiwan and Germany, while the next round is being held at New York. This will be followed by yet another show at Sao Paulo in Brazil and Italy in January. A two-day buyer seller meet is also scheduled to be held in Dubai on December 15-16. The export of leather to these countries accounts for nearly 45 per cent.
As per the Council for Leather Exports India’s positions as the third largest global supplier of leather garments is only going to strengthen given the availability of quality raw material coupled with skilled craftsmanship. Major brands like Armani, Zegna, Abercrombie & Fitch, Marco Polo, Mango, Andrew Maarc, and Guess source Leather Garments from India.
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The major markets for Indian leather garments are Germany with a share of 23.23%, France 11.55%, Spain 12.17%, Italy 10.07%, USA 9.459%, UK 6.68%, Netherlands 3.77%, Denmark 4.49% and Canada 2.19%.
M. Rafeeque Ahmed, Chairman, Council for Leather Exports says, “The target has been set in consultation with the Commerce Ministry by bringing in the leather sector under the purview of ‘Make in India’ scheme. Our first target is to double the total sales by 2020. We are working out on capacity building, road shows for attracting foreign direct investment.”
In 2014-15, this sector registered 10.5 per cent growth to end at US $ 13 billion. However, the leather sector posted negative growth of 9.5 per cent during the first seven months of the current fiscal ended October 2015-16 due to the declining international demand for Indian products coupled with less unit value realisation. During the period under review, leather products accounted for 3 to 5 per cent growth, while finished leather sector was down by 24 per cent.
Some of the key factors making the sector passive and impeding its growth are financial constraints, high interest rates and lack of infrastructure facilities. The Euro zone crisis, economic sanctions by EU and Russia, intense competition from neighbourhood countries and depreciating rupee are also adding to the woe.
Bharat Tex Special Report 2026 
