Abstract:
FDI Inflows to Leather and Leather Goods has been development oriented. The Leather and Leather Goods Industry in India is of considerable importance to the Indian economy. At present the Leather and Leather Goods Industry has got huge potential for FDI inflows.
Opportunities of FDI Inflows to Leather and Leather Goods
The important aspects of the leather and leather goods industry in India that provide substantial opportunities for FDI in this sector are -
- India is one of the largest livestock holding countries in the world
- The country supplies nearly 10% of the international leather requirement
- The yearly production value of Leather and Leather Goods is around US$ 4 billion
- The yearly export value of Leather and Leather Goods is around US$ 2 billion
- Export growth Compound Annual Growth Rate was 8.20% in the period 2000 to 2004
- Presently there is a spree in the transfer of technology and Foreign Direct Investment inflows
- Huge potential for future growth, both national and international
Leather and Leather Goods - Production Centers
The important production centers of leather and leather goods in India where foreign investors can invest are -
- Northern Region - Jallandhar and Delhi
- Eastern Region - Kolkata
- Southern Region - Chennai, Vaniyambadi, Ranipet, Dindigul, Trichy, Hyderabad, Bangalore, and Ambur
- Western Region - Mumbai
- Central Region - Kanpur and Agra
Leather and Leather Goods- Production capacity
- Hides - 65 million pieces
- Skins - 170 million pieces
- Leather Footwear - 909 million pairs
- Leather Goods - 63 million pieces
- Leather shoe uppers - 100 million pairs
- Leather Garments - 16 million pieces
- Industrial Gloves - 52 million pairs
- Saddlery - 0.10 million pieces
Leather and Leather Goods - Products exported
Leather products that have high exports provide higher opportunities for FDI. These are -
- Leather Footwear
- Footwear Components (Shoe Uppers, Soles, etc.)
- Leather Garments
- Leather Goods (Including Harness & Saddlery, Leather Gloves, etc.)
- Finished Leather
Exports of the Leather and Leather Goods - 2003-2004
- Leather Footwear - 31.65%
- Footwear Components - 7.19%
- Leather Goods - 23.20%
- Finished Leather - 22.76%
- Leather Garments - 10.72%
- Saddlery & Harness - 2.73%
FDI Inflows to Leather and Leather Goods - Yearly
- In the year 2003, the number of approvals were 212, out of which 44 were technical and 168 were financial, the amount of FDI approved was ` 5744.07 million and the percentage of contribution towards total FDI was 0.20 %
- In the year 2004, the number of approvals were 163, out of which 33 were technical and 130 were financial, the amount of FDI approved was ` 2742.23 million and the percentage of contribution towards total FDI was 0.15 %
Last Updated on 4/23/2011
