India’s footwear, leather goods, and leather industry all play significant roles in the country’s economy. This sector is well-known for its consistent ability to generate sizable export earnings and is ranked among the top ten foreign exchange earners in the country.
Almost 13% of the world’s hides and skins are produced in India, where the leather industry produces a substantial 3 billion square feet of leather annually. India ranks fourth globally in terms of leather goods exports, third in terms of saddlery and harnesses, and second in terms of leather clothing exports. India exported US $3.68 billion worth of leather goods, footwear, and leather goods in 2020–21. The sector provides excellent job opportunities.
There are 4.42 million jobs in the leather industry, most of which are held by members of disadvantaged social groups. About 30% of jobs in the leather products industry are held by women.
India has four main leather sectors: tanning, footwear, and leather garments and accessories.
Since India is home to 20% of the world’s cattle and buffalo and 11% of its goat and sheep population, the industry enjoys an abundance of raw materials. To this can be added the industry’s growing adherence to international environmental standards, inventive technology, highly skilled labor, and the committed backing of related industries.
In spite of these scintillating and enviable features, the leather industry is facing a range of challenges and issues, including the growing use of artificial leather called ‘Vegan’ and animal activists. There are serious sustainability issues and environmental effects associated with the leather industry. A few of the primary environmental issues related to the production of leather are the use of dangerous chemicals, excessive water use, pollution of the air and water, and deforestation.
The leather industry is supported and encouraged by the Indian government as well as a number of state governments, although there are problems with it.
Speaking with Radiance, Patel Yousuf Mohammed, a member of the Southern Regional Committee,Council for Leather Exports said there are three broad challenges to the leather industry, i.e., rising economic costs, the environment, and vegan or artificial leather.
There are multiple steps involved in the production of leather goods, such as obtaining raw hides and skins, tanning and processing the hides, and producing finished leather goods. Cattle, sheep, goats, pigs, and other animals are among the many sources of raw material used in the leather industry.
Patel Yousuf Mohammed, who is also a member of the Executive Committee of the All India Skin & Hide Merchants & Tanners Association, said chemicals and other materials are used during the tanning process to strengthen and preserve the hides and prepare them for use in leather goods. While there are different kinds of tanning that can be used, common techniques include chrome, vegetable, and synthetic tanning. He said vegetation tanning is a traditional tanning process in which tree bark juice and seeds are used for tanning. Although it is an environmentally friendly and cost-effective process, environmentalists objected to it under the guise of “deforestation,” he added.
Following tannery, the hides are cut, sewn, and used in other manufacturing processes to create finished leather goods.
The history of the leather manufacturing sector is rich, going all the way back to ancient times. In ancient times, animal hides have been used for shelter, clothes, and shoes since the prehistoric era. Leather was widely used by the ancient Greeks, Romans, and Egyptians for clothing, footwear, and military gear, among other things. In the Middle Ages, the leather trade flourished in Europe, especially in towns like Florence, Italy, Cordoba, andSpain. Vegetable tannins were used to produce high-quality leather, and tanneries were established along with improved methods for treating leather. During the Industrial Revolution, the leather industry saw tremendous transformation as the development of mechanized tanning techniques and the usage of machinery increased the speed and efficiency of leather production.
The leather industry developed further in the 20th century as a result of improvements in communication, transportation, and technology, which boosted international trade. Although synthetic materials like rubber and plastic began to challenge leather, leather was still chosen for luxury products.
However, worries about animal welfare, impact on the environment, and working conditions in some countries have led to criticism of the leather manufacturing industry in recent years. People for the Ethical Treatment of Animals, or PETA, is an organized group that leads a campaign against the slaughter of animals for human consumption.
Patel Yousuf Mohammed said this was an absurd accusation with no merit because it would be like interfering with divine laws to prevent the majority of people from eating non-vegetarian food.
Another challenge the industry faces is growing cost pressure. He said the manufacturers need to keep their costs under control to remain profitable. This can be challenging, particularly in the face of increasing raw material costs, labor costs, and other expenses; 65 percent of the cost incurred on tanning the skins earlier was 30 percent, he added. Furthermore, the growing market for vegan products has an adverse effect on the leather industry. He argued that although people complained that leather manufacturers were not paying fair prices for hides during Eid al-Adha, they were unaware that this was due to the law of supply and demand.
On the question of pollution, he underlined that the leather manufacturing industry is subject to a range of regulations and standards, which manufacturers must comply with to ensure the safety and quality of their products. This can be challenging, particularly for small manufacturers who may not have the resources to comply with all the requirements. He also pointed out that in making vegan products, more chemicals and hazardous materials are used, which causes more pollution than in the leather industry.
There are about 1600 tannery units in the country, and Tamil Nadu topped the list with 700 units operating. Patel Yousuf Mohammed, who resides in Vaniyambadi in Tamil Nadu, said Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul, and Erode are major tanning centers in the state. Kolkata, Agra, Noida, Saharanpur, Mumbai, Kozhikode, Ernakulam,Cochin, Jaipur, Jalandhar, Bengaluru, Hyderabad and other cities have emerged as tannery centers.
There are numerous competitors fighting for a piece of the lucrative leather manufacturing market. Because of this, it is difficult for manufacturers to stand out from the competition and set themselves apart. The US is a big market for India which is facing a mini-recession, said Patel Yousuf Mohammed.
Vegan products also pose a grave threat to the industry.
According to Patel Yousuf, foreign players are heavily investing in vegan manufacturing. In Tamil Nadu, five factories are being built with an investment of Rs 2000 crore from Taiwan. However, he is optimistic about the future of the leather industry, pointing out that in countries such as China, Vietnam, and Indonesia, hides are being used for food consumption in the form of noodles and ‘papad’.