Lok Sabha Question No. 2177 (UNSTARRED), answered on 2018-12-24
Subject: Growth of Leather Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: RABINDRA KUMAR JENA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 2177. TO BE ANSWERED ON MONDAY, THE 24 TH  DECEMBER, 2018.

## GROWTH OF LEATHER INDUSTRY

## 2177.  SHRI RABINDRA KUMAR JENA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the  present  condition  of  the  leather  industry  in  the  country  particularly  in Maharashtra and Uttar Pradesh;
- (b) whether  there  has  been  a  slow  down  in  the  leather  production  and  export during each of the last three years and the current year;
- (c) if so, the details thereof and the reasons therefor along with the growth rate of exports in leather industry;
- (d) whether there has been a supply crunch in leather industry particularly in Agra region of Uttar Pradesh; and
- (e) if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  corrective steps taken by the Government in this regard?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a): As per information received from Council for Leather Exports (CLE), Leather Industry occupies a prominent place in the industrial map of the country. India is  the  second  largest  producer  of  footwear,  2 nd largest  exporter  of  Leather Garments, 5 th largest exporter of Leather Goods and 3 rd Largest Exporter of Saddlery  and  Harness  items.  Uttar  Pradesh  and  Maharashtra  are  major production  and  export  centres  of  leather,  leather  products  and  footwear. According to membership records of Council for Leather Exports (CLE), Uttar Pradesh  contributed  a  share  of  31.35%  in  total  exports  of  leather,  leather products and footwear from the country while Maharashtra contributed 2.28% during 2016-17.
- (b): As  per  information  received  from  Council  for  Leather  Exports  (CLE),  the manufacturing  based  export  of  leather,  leather  products  and  footwear  from India increased from USD 5.65 billion in 2016-17 to USD 5.74 billion in 201718,  growing by 1.65%. The exports showed decline of 9.84% and 3.56% in

Dollar Terms during 2015-16 and 2016-17 respectively. However, during the current year, exports showed increase of 5.25% in rupee terms as compared to the same period last year, as shown below.

India's Exports Leather and leather products - Value in US$ Mn

| Products             |   2015-16 |   2016-17 |   2017-18 | %change 2016-17   | %change 2017-18   |
|----------------------|-----------|-----------|-----------|-------------------|-------------------|
| FINISHED LEATHER     |   1046.45 |    886.39 |    874.23 | -15.30%           | -1.37%            |
| LEATHER FOOTWEAR     |   2147.98 |   2128.87 |   2193.61 | -0.89%            | 3.04%             |
| FOOTWEAR COMPONENTS  |    284.34 |    298.69 |    335.24 | 5.05%             | 12.24%            |
| LEATHER GARMENTS     |    553.11 |    535.66 |    518.96 | -3.15%            | -3.12%            |
| LEATHER GOODS        |   1370.04 |   1316.63 |   1365.33 | -3.90%            | 3.70%             |
| SADDLERY AND HARNESS |    146.38 |    142.35 |    155.88 | -2.75%            | 9.50%             |
| NON-LEATHER FOOTWEAR |    306.74 |    338.21 |    296.68 | 10.26%            | -12.28%           |
| TOTAL                |   5855.04 |   5646.8  |   5739.93 | -3.56%            | 1.65%             |

Source : DGCI&S

## (Value in Million Rs)

| CATEGORY             |   APRIL - OCTOBER |   APRIL - OCTOBER | %VARIATION   |
|----------------------|-------------------|-------------------|--------------|
|                      |            2017   |            2018   |              |
| FINISHED LEATHER     |           33924.1 |           32289.6 | -4.82%       |
| LEATHER FOOTWEAR     |           81199.4 |           89474.9 | 10.19%       |
| FOOTWEAR COMPONENTS  |           12429.8 |           13598.4 | 9.40%        |
| LEATHER GARMENTS     |           20563.3 |           20477.7 | -0.42%       |
| LEATHER GOODS        |           50951.1 |           55557.3 | 9.04%        |
| SADDLERY AND HARNESS |            5848.6 |            6670.5 | 14.05%       |
| NON-LEATHER FOOTWEAR |           12589.7 |           10860.9 | -13.73%      |
| TOTAL                |          217506   |          228929   | 5.25%        |

- (c): As per information received from Council for Leather Exports (CLE), the major reasons for the decline in exports is due to external factors namely recession in  the  major  market  of  European Union (to which about 55% of exports are directed), instability in middle-east, stiff competition from Polyurethane Garments  to  the  Leather  Garments  segment,  decrease  in  demand  of  nonleather footwear in African countries due to emergence of production centres in those countries and competition from China and decrease in global imports of finished leather.
- (d): No.
- (e): The question does not arise, in view of reply at 'd'.

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