India’s Leather and Footwear Exports Set to Reach $5.3 Billion with 12% Growth in 2024-25

India's Leather and Footwear Exports Set to Reach $5.3 Billion with 12% Growth in 2024-25

India’s leather and footwear industry is experiencing a significant boost in exports, with a projected increase of over 12%, reaching $5.3 billion in the current financial year. This rise is largely driven by strong demand from key global markets, particularly the US and the UK, according to Rajendra Kumar Jalan, Chairman of the Council for Leather Exports (CLE).

In the previous fiscal year, India’s leather and footwear exports totaled $4.69 billion, and this year, the industry anticipates a notable increase.

“Our order books look promising for the coming months, with substantial demand from international markets”

Rajendra Kumar Jalan, Chairman,Council for Leather Exports (CLE)

The US and UK have emerged as primary markets showing strong interest in Indian leather products.

The Indian leather sector is not only focused on traditional markets like the US and UK but is also exploring new opportunities in regions such as Africa.

The leather industry in India is a major source of employment, with approximately 42 lakh (4.2 Million) people employed in various sectors of the industry.

With an overall turnover of around $19 billion, including exports worth $5 billion, the sector is set for even greater growth.

Jalan projected that the sector could reach a turnover of $47 billion by 2030, with domestic production contributing $25 billion and exports expanding to $13.7 billion.

To achieve these ambitious targets, Jalan emphasized the need for continued government support, especially through the extension of the Production-Linked Incentive (PLI) Scheme to the leather sector.

He believes that such a move would not only boost exports but also generate employment for an additional 7 to 8 lakh people.

Additionally, the CLE has urged the Indian government to reconsider certain export duties that are affecting the sector’s growth, such as the 20% export duty on wet blue and crust and the import duty on finished leather.

Despite the promising growth, the Indian leather industry still faces some significant challenges. The sector needs to address the skilled labor shortage and enhance its focus on design development to stay competitive globally.

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Arshad

Arshad

He is an engineer specializing in Leather Technology, known for his keen interest in analyzing global leather, footwear, and leather goods markets & his ability to make complex information clear & accessible. 

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India's Leather and Footwear Exports Set to Reach $5.3 Billion with 12% Growth in 2024-25