Lok Sabha Question No. 2405 (UNSTARRED), answered on 2016-05-09
Subject: Export of Leather and Leather Products
Ministry: COMMERCE AND INDUSTRY
Asked by: VISHNU DAYAL RAM, KONDA VISHWESHWAR REDDY

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2405 (H) TO BE ANSWERED ON 09 TH   MAY, 2016

## EXPORT OF LEATHER AND LEATHER PRODUCTS

## 2405 (H). SHRI VISHNU DAYAL RAM: SHRI KONDA VISHWESHWAR REDDY:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the share of India in the world trade of leather and leather products at present along with the total quantity and value of leather and leather products exported from the country during the last three years;
- (b) whether the export of leather and leather products has declined during the said period and if so, the details thereof along with the reasons therefor;
- (c) whether the export duty on leather hides from India is the highest in the world and if so, the details thereof;
- (d) whether the Government has any proposal to remove the export duty on leather hides in order to promote leather trade of the country and if so, the details thereof along with the other measures taken to promote exports of leather and leather products from the country; and
- (e) whether the Government has launched the Indian Leather Development Program and if so, the details and the objectives thereof along with the status of the programme and the manner in which it is likely to benefit the leather Industry?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a) Madam, the details are enclosed in Annexure.
- (b) The  export  of  leather  and  leather  products  has  grown  from  US$  5015.41  million in2012-13 to  US$  6494.41  million  in  2014-15.As  perprovisional  data  available  for the period 2015-16, the export of leather and  leather products has declined by 10.08% over 2014-15 mainly due to recession in major market of Europe, instability in middle-east, sanctions against Russia etc.
- (c) No, Madam.
- (d) No, Madam.
- (e) Yes, the Government launched the Indian Leather Development Programme    (ILDP)from  the  10 th Five  Year  Plan  and  the  same  has  been continued in 12 th Plan. Department of Industrial Policy & Promotion, Ministry of  Commerce & Industry, Govt.  of India  is  the  implementing  agency.  The objective  of  ILDP  scheme  is  to  augment  raw  material  base,  enhance capacity, modernization and upgradation of leather units, address environmental concerns, human resource development, support to traditional leather artisans, address infrastructure constraints and establish institutional facilities so as to benefit the leather industries in these areas.

*****

According to latest available statistics of International Trade Centre (ITC), Geneva, for the year  2013-14,  the  total  global  import  of  leather,  leather  products  and  footwear  was 172678.85 million US $ and India's share (as per DGCI&S data) was 5937.97 million US $, which is equal to a share of 3.44%approximately.

The value of export of leather and leather products from India during the last 3 years is as follows:-

(Value in million US $)

| Product            | 2012-13   | 2013-14   | 2014-15   |
|--------------------|-----------|-----------|-----------|
| Finished Leather   | 1093.73   | 1284.57   | 1329.05   |
| Footwear           | 2066.91   | 2557.66   | 2945.15   |
| Leather Garments   | 563.54    | 596.15    | 604.25    |
| Leather Goods      | 1180.82   | 1353.91   | 1453.26   |
| Saddlery & Harness | 110.41    | 145.54    | 162.70    |
| Total              | 5015.41   | 5937.97   | 6494.41   |
| %Growth            | 2.91%     | 18.39%    | 9.37%     |
| Source: DGCI&S     |           |           |           |

According to membership records of Council for Leather Exports (CLE), the quantity-wise export of leather and leather products for the period 2012-13 to 2014-15 is as follows:

| Product                      | 2012-2013   | 2013-2014   | 2014-2015   |
|------------------------------|-------------|-------------|-------------|
| Finished Leather (Sq.Ft.)    | 759,565,425 | 828,277,251 | 836,885,101 |
| Footwear Components (Pairs)  | 38,720,932  | 39,862,656  | 64,032,977  |
| Harness & Saddlery (Pieces)  | 15,219,124  | 15,895,995  | 19,415,952  |
| Leather Footwear (Pairs)     | 88,667,982  | 94,920,239  | 105,542,566 |
| Leather Garments (Pieces)    | 10,212,318  | 9,319,606   | 9,385,456   |
| Leather Gloves (Pairs)       | 131,255,350 | 146,216,484 | 149,053,256 |
| Leather Goods (Pieces)       | 144,589,099 | 147,577,953 | 157,193,493 |
| Non Leather Footwear (Pairs) | 12,350,561  | 13,783,038  | 13,630,078  |