Indian Leather and Footwear Industry—Government Policies Which Shaped Growth

The Indian Leather, Leather Products and Footwear Industry holds a prominent place in the Indian economy. The total turnover of the sector was about USD 17.5 bn during 2021–22 (exports of USD 5 billion and domestic sales turnover of USD 12 billion). This sector is known for its consistency in high export earnings and employment generation. The sector provides employment to about 4.42 million people and has a predominant women workforce concentration of about 40%. The sector is divided into major product segments as detailed below. In the initial 2 decades since independence, India was a predominant exporter of raw materials such as hides and skins but subsequently, the focus shifted to the export of value-added products. India is now a major exporter of value-added products and a leading supplier to major brands. India also has a huge domestic market for leather products and footwear. The policies and schemes of Government of India and the State Governments including the various committees set-up to promote export of value-added products, the de-reservation of leather sector from Small Scale Industry (SSI), the enactment of Micro, Small and Medium Enterprises (MSME) Development Act of 2006, the schemes implemented under Foreign Trade Policy and the focus long term schemes for the industry have all played a major role in the development of the leather, leather products and footwear industry in the country. As a result, exports from the sector have grown from USD 107.97 million in 1966–67 to USD 4872.70 million in 2021–22. The industry had reached an all-time high export value of USD 6494.41 million in 2014–15, but since then exports have remained more or less stagnant. However, the emerging changes in global sourcing pattern have created immense opportunities for growth of the footwear and leather industry.