New Delhi, Dec 22 (KNN) India’s Leather Industry has a potential to generate 250 jobs for every Rs 1 crore investment, the Ministry of Commerce & Industries said in its Achievement Report.

The report highlighted that 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.

Globally, India is the 2nd largest producer of Footwear and 2nd largest exporter of Leather Garments.

India’s leather industry is set to grow exponentially over the next five years with a growth target of 50% in exports from 2016-20.

Per capita consumption of footwear in India is projected to increase and total domestic consumption is expected to reach up to 5 billion pairs by 2020.

The industry is highly labour intensive and employs around 3 million people out of which 30% are women. The sector has a potential to generate 250 jobs for every INR 1 crore investment, said the report.

Indian leather industry was USD 17.85 billion in size during FY2015-16 where exports accounted for USD5.85 billion and the domestic consumption was USD12 billion.

100% Foreign Direct Investment is permitted through the automatic route. During the last two years, (Apr 2014- Sept 2016), a total of USD 53 million has been received in FDI.

The Ministry said that the Government has given its approval for setting up Mega Leather Clusters at Kota Mandal, Nellore district, Andhra Pradesh with a central government assistance of Rs 125 crore.

The project is expected to generate employment for 20,000 people and leverage an investment of at least Rs 500 crore in the first phase itself. (KNN Bureau)