Leather sector has the potential to create 2 million jobs in the next 5 years: MSDE

Chennai,  Sep 23 (KNN) Leather Sector is an Export driven sector and has the potential to create 2 million jobs in the next 5 years, said Dr. Mahendra Nath Pandey, Minister for Skill Development and Entrepreneurship (MSDE).

Speaking at a ceremony held today, where more than a thousand candidates in the leather sector were awarded Recognition of Prior Learning (RPL) Certificates in Chennai, he said that the Government of India had recently announced in the Budget of 2019 that export duty be rationalized on raw and semi-finished leather increasing opportunities in the sector.

Pandey distributed Recognition of Prior Learning (RPL) certificates to the graduating trainees under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) of Skill India, who were trained, assessed and certified on their existing skill sets across leather companies with the due effort of the Leather Sector Skill Council (LSSC).

The certification ceremony was graced by K Pandiarajan, Minister for Tamil language, Tamil Culture and Archeology.

Lauding the efforts of LSSC, Pandey stated, “Globally, India is the second largest producer of leather garments and footwear and with this phenomenal market potential, the sector seems promising in the years to come. When we look back at our past, India has always had a rich heritage of leather crafts like footwear and accessories."

These were prepared by highly skilled craftsmen from various clusters like Agra, Kanpur, Ambur and other regions, he added.

Addressing the gathering, Pandey said these skills need to be preserved and people should be encouraged to make them a means of sustainable livelihood. I am glad to see the outcome of your RPL programs undertaken in close collaboration with the industry.

“The Government of India has allowed 100% foreign direct investment (FDI) in the sector and rationalized export duty on raw and semi-finished leather. The sector employees over 2.5 million people and has potential to create 2 million jobs in the next 5 years,” he further added.

India accounts for about 13% of the world’s leather production. Footwear and Leather products in the world. The leather and leather products industry contribute less than 1% to India’s GDP and Footwear industry contributes about 2% to India’s GDP. Indian leather industry has huge potential for exports.

It can reach USD 9.0 billion by 2020, from the present level of USD 5.85 billion. India has trade agreements with Japan, Korea, ASEAN, Chile etc., and is negotiating Free Trade Agreement (FTA) with European Union, Australia etc.

Fashion and trends have a great influence in this industry. There are many opportunities for entrepreneurship in traditional leather trades and new forms of leather substitutes, said Pandey. 

He said "We need to cater to basic needs as well as luxury segments, with vast potential for exports. On this occasion, I would advise the Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs) to review their manufacturing processes in terms of quality of output and wastage reduction by skilled professionals."

On the occasion,  he also announced “Mochi Swabhimaan Initiative, a nation-wide activity where LSSC will extend support to the cobbler community who provide leather-based services, with CSR funds and bring respect to their skills by giving them better working environment in the form of kiosks/umbrellas.

The government will also support this idea and will ensure they work in a dignified manner, said Pandey.