Introduction
The leather industry has a significant impact on the Indian economy. It is among the top ten foreign exchange earners in the country. Indian cattle & buffalo population accounts for 20% and the goat & sheep population of the country accounts for 11% of the world’s total. This places it in a dominant position in terms of affluent raw material availability.
With the leather industry being among the oldest trade in the country, India has strong skilled manpower and innovative technology. The country has a strong and eco-sustainable tanning base and modern manufacturing units. It also has strong support from the leather, chemical and auxiliary industries. The industry employs about 4.42 million people in the country. It is a prominent source of employment in the rural parts of India with women employed at about 30% in the sector.
India has four main leather sectors: Tanning, Footwear, Leather Garments and Leather garments and Accessories. The country accounts for 13% of the world’s total leather production. It is also the second-largest producer and consumer of leather footwear.
Major footwear and leather products producing states in India are Tamil Nadu, West Bengal, Uttar Pradesh, Maharashtra, Punjab, Karnataka, Madhya Pradesh, Haryana, Kerala, Rajasthan, and Jammu & Kashmir.
Export Trend
India is the second-largest exporter of leather garments, the third-largest exporter of saddlery & harnesses and the fourth-largest exporter of leather goods in the world. The garments sector accounted for 7.62% of the country’s total leather exports in FY25 (April-December).
Out of the total leather and leather products exported out of India, the footwear segment accounts for the majority of exports, with FY25 (April-December) exports valued at Rs. 1,26,902 crore (US$ 1.51 billion).
Footwear (Leather Footwear, Footwear Components & Non-Leather Footwear) holds the major share of 51.9% in the total export of leather and leather products with an export value of US$ 598.58 million.
Export Destinations
India exports leather to more than 50 countries. USA, Germany, the UK, Italy, France, Spain, Netherlands, China, Belgium, UAE, Australia, Poland, Hong Kong, Denmark, Canada, Vietnam, and Portugal are among the top importers of leather and leather products from India. The Top 15 countries together account about 78.77% of India’s total leather & leather products export during April-December 2024 with export value of US$ 2.87 billion.
During FY25 (April-December), the total export of leather products to the USA was valued at Rs. 6,870 crore (US$ 795.55 million), an increase of 16.30% YoY. During the same period, Germany and the UK imported leather and leather products worth Rs. 3,567 crore (US$ 413.08 million) and Rs. 2,888 crore (US$ 334.44 million) from India, respectively.
The USA was the largest importer of leather and leather products from India and accounted for 21.82% of the country’s total leather exports in FY25 (April-December). Germany and the UK accounted for 11.33% and 9.17% of the exports during the same period.
Government Initiatives
Indian Footwear and Leather Development Program (IFLDP)
The Union Budget 2025-26 introduced a Focus Product Scheme to boost the footwear and leather sector, aiming for Rs. 4 lakh crore (US$ 46.13 billion) turnover, Rs. 1.1 lakh crore (US$ 12.74 billion) in exports, and 2.2 million jobs. A Rs. 2,600 crore (US$ 301.10 million) Public Linked Incentive (PLI) scheme is also under discussion to enhance domestic manufacturing and reduce imports.
The IFLDP scheme was launched to develop the infrastructure, increase production, facilitate investments, and generate employment in the leather industry of India. Under this scheme, US$ 220 million (Rs. 1,700 crore) has been allocated till 2026. Following are the six sub-schemes under IFLDP:
- Sustainable Technology and Environmental Protection (STEP) - The STEP initiative is aimed at sustainable and environment-friendly industrial and tanning activities which are particularly linked to environmental concerns. Considering these issues, zero liquid and wastewater discharge is made mandatory in some states. Assistance for the upgradation of Common Effluent Treatment Plants (CETPs) and vision document preparation is provided under the scheme.
- Integrated Development of Leather Sector (IDLS) - The main objective of this scheme is to encourage entrepreneurs to diversify and set up new units leading to better productivity.
- Establishment of Institutional Facilities - The scheme aims to provide infrastructure upgradation of campuses of the Footwear Design and Development Institute (FDDI).
- Mega Leather Footwear and Accessories Cluster Development (MLFACD) - The scheme was launched to assist entrepreneurs by providing modern infrastructure, technology, training and skill development and human resource development inputs.
- Brand Promotion of Indian Brands in Leather - The scheme aims to provide Indian footwear and leather manufacturers international branding support to provide better product visibility.
- Footwear Sector and Development of Design Studios - This scheme provides design support, technical assistance and opportunities for employment and business.
Governing Body
Council for Leather Exports (CLE)
Formed in 1984, the CLE is the largest and apex body of 2,868 members for trade promotion of the leather and leather industry of India. The objectives of the council are to develop and strengthen the leather industry, undertake promotion, and market development activities, assist importers, provide guidance and act as a liaison between the government and industry. It caters to the needs of leather exporters and serves as a bridge between Indian leather exporters and buyers all over the world. CLE has been formed to provide a one-stop source for international investors to not only access all the information but also avail the required guidance to set up a successful venture in the Indian marketplace.
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Executive Director
3rd Floor, CMDA Tower II,
Gandhi Irwin Bridge Road
Egmore, Chennai - 600008,
Tamil Nadu
India
Tel.:+91-44-28594367-71 (5 line)
Fax: +91-44-28594363/ 64
Email: cle@cleindia.com
Website: www.leatherindia.org
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