India’s leather industry is calling for greater support for its small and medium-sized enterprises (SMEs), which form the backbone of the sector, particularly in key leather manufacturing hubs like Kanpur, Agra, and Chennai. Despite their significant contribution to both domestic production and exports, these SME clusters face challenges such as limited access to finance, outdated technologies, and lack of infrastructure, hindering their growth potential.
To address these issues, industry leaders are advocating for financial assistance, training programs, and modernization initiatives to help SMEs enhance their productivity and competitiveness. The goal is to create an environment that enables these businesses to adopt advanced technologies, improve sustainability practices, and meet the growing global demand for high-quality and eco-friendly leather products.
The Indian government has already launched several programs to support the leather sector, such as the Integrated Development of Leather Sector (IDLS), which offers financial aid for modernization and skill development. However, there is a growing need for tailored support specifically for SMEs, which often lack the resources to implement these changes on their own. Assistance in the form of technology transfer, low-interest loans, and subsidies for sustainable production methods could enable SMEs to overcome these hurdles and become more competitive in the global market.
The leather industry’s focus on sustainability is also crucial. SMEs often struggle to adopt eco-friendly practices due to high upfront costs and the lack of proper infrastructure. By providing targeted support, India can encourage SMEs to implement green technologies, such as chrome-free tanning, recycling processes, and water-saving techniques, thereby aligning with the global demand for sustainable and ethical products.
Increased investment in SME clusters will not only boost India’s leather exports but also strengthen the sector’s overall economic contribution, create jobs, and enhance the global competitiveness of India’s leather products. By focusing on the specific needs of SMEs, India’s leather industry can ensure inclusive growth and become a global leader in sustainable leather manufacturing.
