Msme to play a big role in India’s development.

The Spirit of MI “People may not remember what you say, but they remember how you made
them feel.”
Source: FDI Policy

Investment climate in India has improved

considerably since the opening up of the
economy in 1991.
This is largely attributed to ease in FDI norms across sectors of the economy.
India, today is a part of top 100 club on Ease of Doing Business (EoDB) and
globally ranks 1st in the greenfield FDI ranking. India received the record FDI of
$ 60.1 bn in 2016-17.

Subject to the provisions of the FDI policy, foreign investment in ‘manufacturing’

sector is under automatic route. Further, a manufacturer is permitted to sell its
products manufactured in India through wholesale and/or retail, including
through e-commerce, without Government approval.
 The Leather industry in India accounts for around 12.9% of the world’s leather
production of hides/skins and handles a robust annual production of about 3 bn sq.
ft. of leather. The country accounts for 9% of the world’s footwear production. The
industry is known for its consistency in high export earnings and it is among the top
ten foreign exchange earners for the country.

India has an abundance of raw materials with access to 20% of world’s cattle and buffalo and 11% of the
world’s goat and sheep population.

The Leather industry is an employment intensive industry providing job to more than 4 mn people,
mostly from the weaker sections of the society. Women employment is predominant in Leather
products industry with about 30% share. The Leather industry in India has one of the youngest
workforces with 55% of the workforce below 35 years of age.

The Leather industry has the tendency to generate 250 jobs for every $ 0.2 mn investment.

 2.8 bn
Footwear exports

 519 mn
Leather garments exports

 4.42 mn
People employed

 874 mn
Finished leather exports

Industry Scenario
Exports of leather and leather products touched $ 5.74 bn during 2017-18

Exports are segmented as:

 Footwear export accounts for 49.23% share. Product mix with gents
(55%), followed by ladies (35%) and children (10%). With an annual production
of 2257 mn pairs, a huge domestic retail market exists with 2021 mn pairs
(90%).
 Leather garments industry: Annual production capacity of 16 mn pieces.
9.04% share of India’s total leather export.
 Leather good and accessories industry including saddlery and harness:
Accounts for 23.79% share for leather goods and around 2.7% for saddlery and
harness. The annual production capacity of 63 mn pieces of leather articles, 52
mn pairs of Industrial gloves and 12.5 mn pieces of harness and saddlery items
 Finished leather stands at 15.2%. Tanning industry accounts for an annual
production of about 3 bn sq.ft
 Source: statista.com

 Revenue in the Footwear market amounts to US$435,139m in 2019. The market is expected
to grow annually by 4.2% (CAGR 2019-2023).
 The market's largest segment is the segment Textile & Other Footwear with a market
volume of US$202,661m in 2019.
 In global comparison, most revenue is generated in United States (US$91,187m in 2019).
 In relation to total population figures, per person revenues of US$59.04 are generated in
2019.