Indian Leather

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  • Mega Leather Cluster in Ramaipur, Kanpur: Central government proposes cluster to rejuvenate Kanpur’s struggling leather sector, once dubbed “Leather City of India.”
  • Decline Factors:
    • Demonetisation (2016) disrupted cash flow.
    • Pollution control directives (2017) reduced tannery infrastructure.
    • Rising effluent treatment costs.
    • NGT concerns over Ganga pollution (chromium, mercury).
    • Ban on slaughterhouses and restrictions on cattle trade.
  • Significance of Leather Industry:
    • Major sub-sectors: Tanning, footwear, garments, accessories.
    • India: 2nd largest producer/consumer of leather footwear.
    • 13% of world’s leather production, significant exporter.
    • Employs 4.42 million (30% female, rural).
  • Challenges:
    • Export decline due to weak demand.
    • Synthetic leather substitutes
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      threat.
    • High pollution from tanning, poor effluent treatment.
    • Worker health risks, poor labor conditions.
    • GST increased costs for MSMEs.
  • Revival Strategies:
    • Transform CETPs to CIRCLES, fund ZLD micro-treatment.
    • Position India as “China Plus One.”
    • National Leather Tech Hub for innovation.
    • “Bharat Leather Mark” for ethical luxury branding.
    • Digital Udyog Cards for workers, worker wellness mission.
  • Kanpur Situation:
    • 200+ active tanneries.
    • NGT directed health camps due to pollution impacts.
    • Tanneries operating at reduced capacity, pay cuts.
    • Owners shifting to West Bengal, Vietnam, Europe.
  • Worker Impact:
    • Irregular jobs, decreased earnings.
    • Health issues (asthma, COPD) linked to pollution.
    • Lack of labor law implementation.
  • Government Initiatives:
    • IFLDP (Rs 1,700 crore), PLI scheme (proposed Rs 2,600 crore).
    • Drafting new leather and footwear policy for exports.