Question : LEATHER INDUSTRY



(a) whether the Union Government proposes to promote and encourage leather industry in the country;

(b) if so, the details thereof along with schemes/package given by the Government during the last three years and the current year including the funds allocated, State-wise; and

(c) the details of leather goods manufactured/exported and imported during the above said period along with any grants being provided for their promotion?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (DR. S. JAGATHRAKSHAKAN)

(a): Yes, Madam.

(b):
(i) The Central Government had implemented a scheme `Indian Leather Development Programme (ILDP)` during 11th Plan period (2007-2012) for overall development of Leather Sector in India. The scheme is being proposed for continuation during 12th Plan period (2012-17).

(ii) The State wise figure of funds released in the form of grant-in-aid under ILDP for the last three years and the current year are as under:-

For the financial year 2009-10 

Name of State Amount released (Rs. in crore)
Chandigarh 0.11
Gujarat 0.50
Haryana 25.30
Karnataka 0.04
Kerala 0.10
Madhya Pradesh 6.57
Maharashtra 0.76
New Delhi 2.82
Punjab 0.81
Tamil Nadu 56.85
Uttar Pradesh 17.19
West Bengal 28.95
Total 140.00

For the financial year 2010-11

Name of State Amount released (Rs. in crore)
Andhra Pradesh 0.19
Arunachal Pradesh 0.11
Bihar 1.04
Chandigarh 0.11
Haryana 33.53
Karnataka 0.29
Madhya Pradesh 11.76
Maharashtra 1.10
New Delhi 2.75
Orissa 0.37
Punjab 1.69
Rajasthan 2.68
Tamil Nadu 62.04
Uttar Pradesh 16.77
West Bengal 45,22
Total 179,75

For the financial year 2011-12
Name of State Amount released (Rs. in crore)
Andhra Pradesh 0.70
Arunachal Pradesh 0.33
Bihar 3.11
Chandigarh 0.26
Haryana 27.55
Himachal Pradesh 0.34
Karnataka 1.49
Kerala 0.09
Madhya Pradesh 5.88
Maharashtra 2.48
New Delhi 2.05
Orissa 0.74
Punjab 3.38
Rajasthan 5.51
Tamil Nadu 66.30
Uttar Pradesh 36.47
Uttarakhand 0.21
West Bengal 14.11
Total 171.00

For the financial year 2012-13
Name of State Amount released (Rs. in crore)
Gujarat 0.14
Haryana 2.18
Himachal Pradesh 0.03
Karnataka 0.22
Kerala 0.29
Madhya Pradesh 0.62
Maharashtra 0.26
New Delhi 0.71
Orissa 0.37
Punjab 4.00
Rajasthan 5.46
Tamil Nadu 7.77
Uttar Pradesh 11.79
Uttarakhand 0.47
West Bengal 3.00
Total 37.31

(C):
(i) India`s export of leather & leather products has increased from Rs.161524.00 mn in 2009-10 to Rs. 233323.80 mn in 2011-12. During the current year 2012-13 upto Apr-Oct 2012,the export touched Rs. 154232.77 million during April-October 2012 as against the previous year`s performance of Rs. 132869.68 million registering a positive growth of 16.08%. A Statement showing India`s export of leather & leather products during the iast three years and current year upto April-Oct 2012 is appended below:
(Value in Mn Rs) 
CATEGORY APRIL-MAR APRIL-MAR APRIL-MAR Apr-Oct 2009-10 2010-11 2011-12 2012
FINISHED LEATHER 2979179 38324.05 49035.50 35100.62
LEATHER FOOTWEAR 59543.36 67016.81 82196.50 50325.68
FOOTWEAR COMPONENTS 9921.57 10473.46 13506.08 7733.16
LEATHER GARMENTS 20335.10 19365.77 27437.71 17834.81
LEATHER GOODS 35915.51 38991.68 52144.59 36557.36
SADDLERY AND HARNESS 3956.42 4006.02 5156.42 3329.60
NON-LEATHER FOOTWEAR 2060.25 2639.32 3847.00 3351.54
TOTAL 161524.00 180817.11 233323.80 154232.77
% Growth 11.95% 29.04%

Source : DGCI & S

(ii) India also imports leather and leather products. As per latest available data, India`s import of leather & leather products has increased from Rs.31842.88 mm in 2008-09 to Rs.40393.95 mn in 2010-11. A Statement showing India`s import of leather & leather products during the last three years is appended below:
(value in MnRs)
SI.No.	Category	2008-09	2009-10	2010-11 
1 Raw Hides & Skins (ITC HS Chapter 41) 4437.51 3340.46 4071.56
2 Leather (ITC HS Chapter 41) 16671.37 15927.16 17461.61
3 Footwear Components (ITC HS Chapter 3052.60 2647.88 5089.13 6406)
4 Footwear (ITC HS Chapter 64) 4275.21 4546.60 7756.64
5 Leather Products including Leather 3406.19 3869.45 6015.01 Goods,
Leather Garments, Gloves & Saddlery
Total Imports 31842.88 30331.55 40393.95

Source: DGCI & S, Annual Number

(iii) The following funds were released under ILDP for overall development of Leather Sector:-
SI.No.	Year	GOI Assistance	released (Rs. in crore) 
1. 2009-10 140.00
2. 2010-11 170.00
3. 2011-12 171.02
4. 2012-13 35.02

The difference in state-wise figure of release of funds and GOI Assistance released by DIPP for the years 2010-11, 2011-12 & 2012-13 is due to the release of unspent balance of previous year by SIDBI.