A Study On The Indian Leather Exports To North America1

1
PROJECT REPORT
On
“A STUDY ON THE INDIAN LEATHER

EXPORTS TO NORTH AMERICA”
Submitted to :
MRS. SHWETA WADHWA
(Programme Lecturer)
Submitted by :
PARITOSH BERRY
BBA – H6B
Roll No. : 42
JAGANNATH INTERNATIONAL MANAGEMENT

SCHOOL
Kalkaji, New Delhi
2
ABSTRACT
The topic chosen for the current Thesis study is “A study of leather exports from India to
North America”. The following study is based on a strong assumption that “India is one
of the major exporters of leather and leather goods to North-American countries”. This
Hypothesis is based on an excerpt from the study conducted in US Embassy to India’s on
the bilateral trade patterns.
Nature of Study
The Thesis study in subject now is an exploratory study with a touch of descriptive
research. Fundamentally it is a Primary Data Study.
Mode of data collection
Questionnaires & Internet is the only source for obtaining the data for this Thesis.
However for converting the data into the usable format and context MS Word and MS
Excel have been extensively used.
Analytical tools used
 Simple Percentages and growth rates have been used as a part of

Mathematical tools.
 Using statistical tools like GAP, the complex data has been tabulated and
drawn into charts and analyzed subsequently.
 As a part of business tools, SWOT analysis has been adopted.
Theoretical Orientation
The study must include all the basic knowledge about the industry and Economies
involved in the study. For this purpose, an extensive understanding of the different
aspects of links involved in the whole value chain of the study had to be carried out. Once
the reader felt the gasp of the topic and nitty-gritty’s involved, I have introduced him to
various combination of the quantitative data relevant to the topic.
Outcomes
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The above dealt tools are sure to establish clear-cut relationship between the missing
information obtained from the secondary research. The outcome necessary for
establishing the conclusion and to prove the hypothesis would be from the quantitative
information.
Limitations of the Research
 For the sake of better understanding and analysis, North America has been
defined as USA and Canadian markets only.
 The data quoted in this report is considered to be latest, since the available
sources are not uniform and not as often updated.
 No future projections for the Industry have been made, since such
projections are subjected to a lot of intricate factors of the Industry. And it
is not possible to deal with so many factors in a small study like this.
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ACKNOWLEDGEMENTS
I would like to convey my gratitude to Mrs. Shweta Wadhwa for her kind support and
insightful guidance at every step of this Thesis Writing, without whom this work would
not have seen the light of the day. He has been of great inspiration and support for me at
every turn of the process.
Further I would like to thank and credit all my professors at JIMS with the success of
this work, which is an offshoot of the seeds of knowledge sown by them. Most
Importantly, I would like to thank Mr. Anoop Sethi for their invaluable suggestions in
this work and for having guided me to the right path at the right time.
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TABLE OF CONTENTS
INTRODUCTION TO THE TOPIC
1. About the Leather Industry

………………………………………………....... 2
1.1.1 Introduction to Leather Crafts in India ………………….
……………3
2. India – Snapshot of the Economy and Infrastructure…………………...….

…4
2.1 Economic Overview………………………………………….………..…4
2.2 Infrastructure…………………………………………………….……....5
2.3 Indian Ports……………………………………………………………....6
3. Organizational Setup for Promoting Exports in India…………………..…….8

3.1 ITPO…………………………………………………………………..…..8
3.2 Fairs in India………………………………………………………..…....9
3.3 Fairs Aboard…………………………………………………...……........9
4. Trade Initiatives with North America……………………………………....…11

4.1 Trade with North NAFTA……………………………………..……….11
4.2 Measures Undertaken for Export Promotion to NAFTA……..…......15
5. Current Status of Leather Exports from India………………….……..…..…16

5.1 About Council for Leather Exports (CLE)………………………...…17
5.2 Global Leather Industry………………………………………….……18
5.3 Forms of the Leather Exported…………………………………….....19
5.4 Export Duty Chargeable on the Indian Leather Goods…………..….22
5.5 Global Exports vis-à-vis India's Export…………………………...…..23
6. USA – Country Profile……………………………………………………...…..25

6.1 Economic Overview…………………………………………….........…25
6.2 Trade Policy Developments…………………………………………….27
6.3 INDO-US Leather Trade…………………………………………….…30
6.4 Government of India’s Initiatives……………………………….....
…..31
7. Canada – Country Profile………………………………………………...……32

7.1 About the Country………………………………………...………..…..32
7.2 Economic Overview……………………………………………….……32
7.3 Trade Policy………………………………………………...………..….33
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7
METHODOLOGY .............................................................................................35
ANALYSIS
8. Supply Side Analysis……………………………………………………………37

8.1 Quick Facts About the Indian Leather Market……………….……...37
8.2 Market Size……………………………………………………………...39
8.3 Performance of Leather Exports in the Past……………………...…..40
8.4 Trade with North America………………………………………....…..43
8.5 Competitive Scenario………………………………………………..….44
8.6 Exports Promotion Measure for Leather Industry in India………....46
9. Demand Side Analysis……………………………………………………….....47

9.1 North America’s Total Leather Imports………………………….…..47
9.2 US Trade Policy on Footwear and Leather Products…………...……50
GAP ANALYSIS
10. Demand – Supply Gap………………………………………………………….51

10.1 Calculation of the Net Imports of the North America………………..51
10.2 Calculation of Net Exports from India to North America…………...51
10.3 Demand -Supply Gap for Leather Trade with the USA………….….51
10.4 Demand -Supply Gap for Leather Trade with Canada…………...…52
10.5 Demand -Supply Gap for Indian Leather Trade with North………..52
SWOT ANALYSIS
11. Strengths and Weaknesses for Indian Leather Industry…………………….54

11.1 Strengths………………………………………………………………..54
11.2 Weaknesses………………………………………………………….….56
12. Opportunities and Threats in the Global Leather Industry……………………..57
12.1 Opportunities…………………………………………………..……….57
12.2 Threats…………………………………………………………..………59
12.3 Major Competitors …………………………………………………….61
RECOMMENDATIONS ………………………………………………………62
CONCLUSION ………………………………………………………….……..63
BIBLIOGRAPHY ………………………………………………………….…..65
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LIST OF TABLES
i. Types of Leather and Their

Application……………………………………… 3
ii. Economic Indicators of
India………………………………………………..….5
iii. Snapshot of Indian Infrastructure
…………………………………………..…5
iv. India’s Export and Import to/from the
US……………………………...……11
v. India’s Export and Import to/from
Canada…………………………………..13
vi. Export Duty Charged on Indian Leather
goods………………………...……22
vii. Economic Indicators of United
States……………………………………..…..27
viii. Economic Indicators of Canada in
2006………………………………………33
ix. Sources of Production of
Leather……………………………………….……..37
x. Category-wise leather producing
Firms………………………………………39
xi. Leather Production by
Category…………………………………………..…..39
xii. Value of Indian Leather Products Exported During 2005 –
06……………...40
xiii. Destinations Including Canada for Indian Leather
exports………………....41
xiv. Leather Imports by
India…………………………………………………...….42
xv. Exports of Broad Categories of Leather
…………………………………...…43
xvi. Top 10 Exporters of Leather as a Share of the World’s
Exports…………....44
xvii. Top 10 Exporters of Leather as a Share of the World’s
Imports…………....44
xviii. India’s Share in the World-wide Leather
Imports…………………………...45
xix. Value of the Leather Apparel Imported by the US in the
Recent Past……...47
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xx. Imports of Leather by the North America in the Recent

Past……………….48
xxi. Value of the Leather Apparel Imports by Canada in the
Recent Past…...…48
xxii. Value of the Leather Imports by the US in the Recent
Past…………………49
xxiii. Value of the Leather Imports by Canada in the Recent
Past……………..…49
xxiv. Net Imports of Leather Products in North
America……………………..…..51
xxv. Net Imports of Leather Products in North
America…………………………51
LIST OF FIGURES
I. Important Hubs for Leather Production in

India……………………………38
II. Breakup of Total Indian Leather Exports in 2005 – 06………………….….40
III. Value of Leather and Leather Products Exported During 1999 –
2005….…41
IV. Demand-Supply Gap with
USA………………………………………………..52
V. Demand-Supply Gap with Canada………………………………….
……..….53
VI. Demand-Supply Gap with North
America…………………………………....54
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PREFACE
This Thesis report is motivated to study one of the emerging topics of the Indian Foreign
Trade. The topic chosen for the current Thesis study is “A study of leather exports from
India to North America”.
The nascent motive in studying this particular topic is to investigate the rapidly changing
conditions in the Foreign Trade Environment and the promises that it has in store for the
Emerging Economies like India.
The present study is based on a strong assumption that “India is one of the major
exporters of leather and leather goods to North-American countries”. This Hypothesis is
based on an excerpt from the study conducted in US Embassy to India’s on the bilateral
trade patterns. The referred article observes that India’s major exports to US include
gems and jewellery, textiles, coir, jute and handicrafts, chemicals and allied products,
engineering goods, leather and leather manufactures, etc.
The Hypothesis could be proved with the help of a thorough probe into the leather trade
trends in the past both at the Exporter’s and Importer’s end. We will try to identify the
Gap in the foreign trade trends between India and North America. We will plug the Gap
with the help of some judicious analytical tools. The resulting trend would give us a clear
picture about the actual scenario of the Leather Trade trends between India and North
America.
Here for this study purpose I have considered the USA and Canada as the whole North
American market.
INTRODUCTION TO TOPIC
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1. About the Leather Industry
Leather
Leather is the suitable forms of Animal skins and hides. These skins and hides are treated
to preserve them. Tanning converts the otherwise perishable skin to a stable and non-
decaying material. Though the skins of animals such as ostrich, lizard, eel, and kangaroo
have been used, the more common leathers come from cattle, including calf and ox;
sheep and lamb; goat and kid; horse, mule, and zebra; buffalo; pig and hog; and seal,
walrus, whale, and alligator. Leather making is an ancient art that has been practiced for
more than 7,000 years
Tanning
By the term ‘Tanning’, one might get confused with a term used for tanning of fair skin
into dusky. The tanning of fair skin in humans by sunlight is completely different:
ultraviolet light causes production and redistribution of the pigment melanin in epidermal
cells.
In case of Leather industry it is the process through which raw animal hides or skins are
chemically treated to convert them into leather. Vegetable tanning (using bark, wood,
roots, or berries) has been practiced since prehistoric times. After removal of hair, flesh,
or fat, a tanning agent displaces water from the interstices between the protein (mostly
collagen) fibers in the skin and cements the fibers together. The agents most widely used
are vegetable tannin, salts such as chromium sulfate, and fish or animal oil.
Types of Leather
i. Types of Leather and Their Application

Types of Leather Application/Nature
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Full-Grain leather Furniture and Foot-wear

Corrected-Grain leather Leather garments of inferior quality
Suede Processed hide known as Latigo
Patent leather Plastic coated leather
Shagreen Un-tanned leather from horse’s back
Buckskin Imperishable leather
Belting leather Used in Luxury products like briefcases, portfolios,
and wallets
Napa leather Used in higher quality wallets, toiletry kits, and
other personal leather goods
Source:
www.answeRScom
1.1 Introduction to Leather Crafts in India
Rajasthan
The Rajasthan state has a long history in leather craft and industry and leather shoes
known as ‘jootis’ or ‘mojdis’ (shoes decorated with beautiful embroidery) are made in
Jaipur and Jodhpur. Embroidery known as ‘kashida’ is done on the jootis. This
embroidery is mainly done by the women, who also do a bit of fancy stitching or
appliqué work to give a designer look to the shoes that have neither a left nor a right foot.
Leather is also used for bookbinding and Alwar is well reputed for this craft that
flourished in the 19th century under Maharaja Banni Singh. Bikaner is again famous for
its kupis or camel-hide water bottles.
Delhi
The current Indian capital Delhi was also an important centre of leatherwork during the
Mughal period, Traditional leather jootis and slippers, which were sometimes ornamented
with pearls, gold and silver were the piece de resistance. Embroidered bags, shoes were
other popular items.
2. India – Snapshot of the Economy and Infrastructure

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2.1 Economic Overview
The economy of India is the fourth largest in the world as measured by purchasing power
parity (PPP), with a GDP of US D3.63 trillion. When measured in USD exchange-rate
terms, it is the twelfth largest in the world, with a GDP of USD785.47 billion or Rs 35,
34,615 0 million in 2005. India is the second fastest growing major economy in the
world, with a GDP growth rate of 9.1percent, as of the first quarter of 2006. India's per
capita income (PPP) of USD 3,400 is ranked 122nd in the world.
For most of its independent history, India adhered to a quasi-socialist approach, with
strict government control over private sector participation, foreign trade, and foreign
direct investment. Starting from 1991, India has gradually opened up its markets through
economic reforms by reducing government controls on foreign trade and investment.
Privatisation of public-owned industries and some sectors to private and foreign players
has continued amid political debate.
India has a labour force of 496.4 million of which 60percent is employed in agriculture or
agriculture-related industries, 17percent in mainstream industry and 23percent in service
industries. India's agricultural produce includes rice, wheat, oilseed, cotton, jute, tea,
sugarcane, potatoes. Major industries include textiles, chemicals, food processing, steel,
transportation equipment, cement, mining, petroleum and machinery.
ii. Economic Indicators of India

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FY 2005 -06
Indicator Percent growth
Value in million USD
Service sector growth - 9.8
Domestic and International air traffic growth 36.3 *
-
Domestic and International air cargo traffic 17.5*
-
growth
Growth in merchandise exports - 29.2 *
GDP at factor cost at current prices 72,316.3 12.5
Agriculture and allied sectors 114,937.8 2.3
Food grains production (tones) 209.3 2.3
Index of industrial production 215.4 7.8
Electricity generated (kwh) 458,600 4.7
Wholesale price index 196.2
4.1
(on February 4, 2006)
Money supply (Outstanding at the end of
576700.5 16.4
financial year)
Imports at current prices 108,803
26.7
(April-Jan 2005-06)
Exports at current prices 74,978
18.9
(April-Jan 2005-06)
Foreign currency assets 133,770
8.2
(by end January 2006)
Exchange rate (Re/USD)
44.25
(Average April-January 2005-06) 2.1
(* Estimated figure)
Source: http://www.ibef.org
2.2 Infrastructure
iii. Snapshot of Indian Infrastructure in the Recent Past

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Indian Roads
National
Gauge Route (km) Widening to WideningTotal to Track
Major
Period Highways totalRunning Track (km) (km)
Two Lanes Four Lanes bridges
Broad length44,220
(in km) 62,180 1,06,400
2002- 03
Meter 58,112
15,180 710
15,880 418 14
31,060
2003- 04
Narrow 65,569
3,410 671
3,450 799 17
6,860
2004- 05 65,569 221 841 1
Railway Network (1998-99)
Air traffic at Major Airports
Source: http://civilaviation.nic.in/ ; http://www.indiacore.com
2.3 Indian Ports
Indian Ports are the gateways to India's international trade by sea and are handling over
90percent of foreign trade.
The 6,000 km long Indian coastline has 12 major ports and 181 minor/ intermediate ports
out of which 139 are operable. The major ports are located at Calcutta/ Haldia, Chennai,
Cochin, Ennore, Jawaharlal Nehru Port at Nhava Sheva, Kandla, Mormugao, Mumbai,
New Mangalore, Paradip, Tuticorin and Vishakhapatnam.
The 12 major Indian ports handle 90 percent of the all-India port throughput. The 139
minor ports are under the jurisdiction of the respective State Governments. During 2001-
2002, the total cargo handled at major ports was 287.56 million tones as against 281.10
million tones during 2000- 2001.
Though the bulk of Indian trade is carried by sea routes, the existing port infrastructure is
insufficient to handle trade flows effectively. The current capacity at major ports is
overstretched. The major ports together have a capacity of 215 million metric tones
(MMT) at 1997- 98 levels. The major ports handled 287.56 million tones in 2001- 2002.
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The situation of limited capacity and high demand has inevitably resulted in port
congestion.
Problem Areas
The performance of Indian ports does not compare favorably with that of efficient
international ports. On three important parameters- capacity, productivity and efficiency,
Indian ports lack in comparison to some of the major international ports. In international
terms, labor and equipment productivity levels are still very low due to the outdated
equipment, poor training, low equipment handling levels by labor, uneconomic labor
practices, idle time at berth, time loss at shift change and high mining scales and low
datums.
3. Organizational Setup for Promoting Exports in India

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3.1 INDIA TRADE PROMOTION ORGANISATION (ITPO)

The Trade Fair Authority of India (TFAI) was incorporated under Section 25 of the
Companies Act, 1956, on 30th December 1976, and commenced business with effect from
1st March 1977. Subsequently, the Trade Development Authority, a society, registered
under the administrative control of Ministry of Commerce & Industry, was merged with
the TFAI with effect from 1st January 1992 and the newly formed Company was renamed
as India Trade Promotion Organization.
To strive to be the pre-eminent trade promotion organization of India and as such to
promote, facilitate, encourage and coordinate various activities and programmes which
would enhance India’s share in international trade and contribute in maximizing the
country’s foreign exchange earnings through the instrument of trade in goods and
services.
Objectives
 To promote, organize and participate in industrial trade and other fairs and
exhibitions show-rooms and depots in India and abroad and to take all measures
incidental thereto for boosting up country’s trade.
 To publicize in India and abroad International Trade Fair and Exhibitions to be
held in India and invite the foreign participants to participate in them.
 To organize and undertake trade in commodities connected with relating to such
fairs, exhibitions show-rooms and depots in India and abroad and to undertake the
purchase, sale, storing and transport of such commodities in India or any where
else in the world.
 To undertake promotion of exports and to explore new markets for traditional
items of export and development exports of new items of export and development
exports of new items with a view to maintaining, diversifying and expanding the
export trade.
3.2 Fairs in India

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ITPO’s domestic exhibitions mirror the latest developments in various sectors of the
Indian industry. These events provide opportunity to the Indian manufacturers/ exporters
to promote their export and also launching and test marketing of their new products and
services. During 2005-06, ITPO’s calendar of exhibitions consist of 23 exhibitions
including IITF’ 2005, India International Leather Fair, International Lather Goods Fair,
Tex-Styles India, Delhi Book air, Arogya, Aahar, Sajavat Fair, Stationery Fair,
Gardening fair (new event), Sports Goods & Physical Fitness Equipment Exhibition, I.T.
India and Education and Job Fair. In addition, 70 other exhibitions are being organized
by Industry Associations, EPCs and private fair organizers. These include Indian
Handicrafts & Gifts Fair, Auto Expo 2006, Plast India, DEF Expo and World Book Fair.
During the year 2006-07, ITPO targets to organize about 26 fairs in India. This will
include some well established fairs like IITF, Aahar, Delhi Book Fair, IILF Chennai
besides event on new product like Gardening and Cool Home etc. In addition, the other
organizers are likely to hold 60 third party events including major fairs like Indian
Handicrafts and Gifts Fair, Garment Fair, Super Seven Show, Indian Enginerring. Trade
Fair, 2006.
3.3 Fairs Abroad

During April-December 2005, ITPO organized participation in 46 trade fairs out of total
58 events expected to be held during the year 2005-06. Out of these 46 event, 18 were
general events and 28 were specialized events further of all the 46 events, 12 were in
WANA, 16 were in Europe, 8 in South East Asia and 10 in America. It includes “Expo
2005 Aichi, Japan” concluded in the month of September, 2005.
Trade Development Activities

ITPO organizes several export development programme by using different promotional
tools for selected products in identified markets. This created awareness of India’s
manufacturing and export capabilities especially in new markets, as also provided
opportunities to Indian exporters to garner export orders During the year up to
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December 2005, four Buyer Seller Meets were organized- the 16th India Home Furnishing
Fair and the 26th India Garment Fair in Japan and one Buyer Seller Meet in Auckland,
New Zealand and another one in Sydney, Australia. These four events together generated
business worth USD 26.24 million and were attended by 2733 buyers from leading
department stores, wholesalers, importers, trading houses etc.
Two BSMs/ Indian exhibitions are targeted to be organized in Japan during 2006-07.
During the year up to November, 2005, visit of 10 Buying Delegations from Japan,
Russia, USA and Germany was hosted and one to one meetings were organized with the
potential India units during their visits. During 2006-07, we expect to host about 12
Buying Delegations from various countries across the globe.
In order to get maximum foreign business delegation at the time of IITF 2005, a Seminar
on “International Trade Opportunities in Technology” was organized. An export
potential Seminar is proposed to be organized during Tex-Styles India 2006.
Under the new Business Development Programme with Department Stores, two
Department Stores have been identified for organizing India Promotion during next year.
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4. Trade Initiatives with North America
4.1 Trade with North American Free Trade Agreement (NAFTA)

Region
The North America Free Trade Agreement (NAFTA) was signed in 1994. It is a free
trade area among the United States of America, Canada and Mexico. It is the largest and
most important trading block of the world. India’s bilateral trade with member –
countries of the NAFTA are as follows:
India-U.S. Bilateral Trade
The US is India’s largest trading partner and foremost export destination. At present it
accounts for 16.48 percent of India’s exports and around 6.26 percent of India’s imports.
India accounts for only about 1.06 percent of the USA’s total exports and imports.
iv. India’s Export and Import to/from the US

(In million USD)
Percentage Percentage Balance of

Year Exports Imports
Growth Growth Trade
2000-2001 9305.12 10.83 3015.00 (-) 15.31 6290.12

2001-2002 8513.34 (-) 8.50 3149.62 4.46 5363.73
2002-2003 10895.76 27.98 4443.58 41.08 6452.18
2003-2004 11490.11 5.45 5034.86 13.31 6455.25
2004-2005 13271.47 15.50 6833.19 35.72 6438.28
Source: DGCI&S
Trend in India-U.S. Bilateral Trade
Growth of India's exports to the US in the year 2004-05 over the previous year was
15.50percent while the growth in the US exports to India was 35.72percent over the
previous year. There is a huge untapped potential to increase bilateral trade. Major items
of Indian exports to the US are: Gems & Jewellery (USD 4040.95 million); RMG Cotton
incl. Accessories (USD 1403.38 million); Manufactures of Metals (USD 738.02 million);
Primary & Semi-Finished Iron & Steel (USD 576.99 million); Drugs, Pharmaceuticals &
Fine Chemicals (USD 576.42 million). Major import items from the US to India are:
22
Electronic Goods (USD 1248.68 million); Machinery except Elec. & Electronic (USD
812.94 million); Other Commodities (USD 717.05 million); Organic Chemicals (USD
363.50 million); Transport Equipments (USD 348.42 million).
During the period April-August, 2005, India’s exports to the US at USD 6003.36 million
registered a positive growth of 14.26percent over the Corresponding period of the
previous year when the exports were USD 5254.17 million.
During the period April-August, 2005, India’s imports from the US at USD 2760.11
million registered a positive growth of 26.38percent over the corresponding period of the
previous year when the imports were USD 2184.02 million.
FDI Approvals
The US ranks first and accounts for about 24.41percent (USD 16.40 billion) of the total
FDI approvals of USD 67.84 billion accorded since 1991. The leading sectors attracting
FDI from the US are Fuels (Power & Oil Refinery), Telecommunications, Electrical
Equipments, Food Processing Industries and Services.
Prospects in Trade for the Region
Considering the size of the U.S’s import market, there is an immense scope for expanding
our export base. In light of China’s performance in the U.S. market, it is felt that it should
be possible for India to raise its market share from 1percent to 2percent in the U.S.
market in the next three years, with the right medium term strategy.
India-U.S. Commercial Dialogue
During the visit of the U.S. President to India, a document “India-US Relations: A Vision
for the 21st Century” was released by the Prime Minister of India and the President of
United States of America on 21st March, 2000 at New Delhi. To implement the Indo-
U.S. Commercial Dialogue envisaged in that document, the Minister of Commerce &
Industry and Secretary, U.S. Department of Commerce had signed the India-United
23
States Commercial Dialogue on 23.3.2000 at New Delhi. Interactions under this

Dialogue have been taking place from time to time to sort out concerns of both sides on
bilateral issues. These include Video conferences on Intellectual Property Rights,
Agricultural Biotech & Food Safety Regulations and on Standards.
India - U.S. Trade Policy Forum
The establishment of the India-US Trade Policy Forum was announced during the visit of
Prime Minister Dr. Manmohan Singh to the US in July, 2005. It is designed to expand
bilateral trade and investment relations between India and the United States. The Trade
Policy Forum is a part of the overall economic dialogue between India and the United
States. The Forum had its first meeting in New Delhi on November 12, 2005 and
discussions were held on Tariff and Non-Tariff Barriers; Agriculture; Investment;
Services; Intellectual Property; and the Doha Round.
India-Canada Bilateral Trade
At present India’s exports to Canada accounts for 1.02percent of India’s global exports
and India’s imports from Canada accounts for 0.70percent of India’s total imports.
India’s exports and imports to/from Canada have been as below:
v. India’s Export and Import to/from Canada

(In million USD)
Percentage Percentage Balance of

Year Exports Imports
Growth Growth Trade
2000-2001 656.47 - 397.07 - 259.40

2001-2002 584.42 (-) 10.97 529.43 33.28 55.38
2002-2003 698.27 19.40 566.29 6.96 131.98
2003-2004 763.20 9.30 725.89 28.18 37.31
2004-2005 818.25 7.21 760.33 4.74 57.92
Source: DGCI&S
24
During the period April-March, 2004-05, India’s exports to Canada at USD 818.25
The major commodities of exports to Canada are Readymade Garments of Cotton

including accessories (USD 193.07 million), Drugs, Pharmaceuticals & Fine
Chemicals (USD 106.35 million), Manufactures of Metals (USD 58.67
million), Cotton Yarn, Fabrics, Made-ups (USD 52.58 million), Machinery and
Instruments (USD 34.64 million) were the major products exported to Canada.
The major commodities of imports from Canada are Newsprint (US D 117.21 million),
Pulses (USD113.70 million), Fertilizers (USD 112.11 million), Pulp and Waste Paper
(USD 69.19 million) and Electronic Goods (USD 59.96 million) were the major products
imported by India.
During the period April-August, 2005, India’s exports to Canada at USD 363.52 million
registered a positive growth of 13.10percent over the corresponding period of the
During the period April-August, 2005, India’s imports from Canada at USD 292.34
previous year when the imports were USD 204.67 million.
The thrust areas for increasing India’s export to Canada are: Leather and Leather Goods,
Gems and Jewellery, Sports Goods, Chemicals and Pharmaceuticals, Processed Food
(both agriculture and marine), Engineering Goods, Auto parts and Ancillaries, Computer
Software Packages etc.
25
Annual Trade Policy Consultation Meeting
In October, 2003, the Prime Ministers of India and Canada had announced the holding of
annual Trade Policy Consultation Meetings between the Secretaries of the two countries.
The first meeting was held in New Delhi. In the second meeting, which was held on 16 th
May, 2005 in Ottawa, Canada, consultations covered a range of issues including progress
of WTO negotiations, respective bilateral and regional trade policy initiatives, ways to
enhance two-way investment flows and trade promotion efforts, and market access
irritants.
4.2 Measures Undertaken for Export Promotion to NAFTA
Dissemination of trade related information with respect to NAFTA partners is

coordinated with the Apex Chambers of Commerce / EPCs. Emphasis is laid on the
identified important sectors for expansion and consolidation of our trade. The analyzed
trade data of NAFTA countries is regularly passed onto the Apex Chambers of
Commerce and Export Promotion Councils for dissemination among their member
exporters, who are also provided assistance for promoting exports, participation in
fairs/exhibitions, identification of export products and potential market areas for exports,
details of reputed buyers etc. The difficulties faced by the exporters in NAFTA countries
are regularly taken up with the concerned authorities in these countries and the issues are
resolved through correspondence, video conferences and meetings. The various
legislations/ steps taken by these countries and the possible impact of these measures on
Indian exports are analyzed regularly and follow up action is taken in consultation with
other Ministries/Departments and our Missions.
26
5. Current Status of Leather Exports from India
India accounts for approximately two percent of the world trade in leather and leather
products. To be on the fast track of growth and to have a larger cake in the international
business, continuous technology up gradation and modernization are the most powerful
driving forces like in any other manufacturing sector that dreams steady growth and
expansion. With this being the primary objective, India's Council for Leather Exports
(CLE) has taken a number of initiatives. To propel the combined efforts of the tanning
and manufacturing sectors, the Central Leather Research Institute (CLRI), the Fashion
Technology and Development Institute and CLE as the main cog in the wheel, an action
plan has been chalked out. The growing international demand apart, the action plan also
suggested measures to face Indian leather's industry's major compt1itors in Asia: China,
Indonesia, Korea and Taiwan.
To boost the country's leather industry, the Indian federal government has earmarked a
Rs 4.5 billion (USD 95 m) grant to be made available to the industry over a span of five
years but that's not without any string. The fund availability is conditional upon the
sector's attracting an annual investment of Rs 2.2 trillion. In 2002, investments in the
leather sector stood at Rs 410 million. Footwear and their components account for about
25 percent of India's total leather products exports. These two markets also offer Indian
leather industry vast scope for exports of Saddlery and harness.
Besides the European market where Indian leather products already enjoy a strong
presence, the US too is emerging as a very strong and promising export destination for
Indian leather industry. US today accounts about 25 percent of a massive USD 96 billion
global trade in leather and leather products. The importance of European market could be
gauged by the fact three major EU countries-Germany, Italy and UK- today accounts for
approximately 42-45 percent of leather and leather products exports from India. These
three countries together exported leather products worth USD 814.82 m in 2001-02
against country's total leather and leather products exports valued at USD 1.93 billion.
27
CLE is trying to make a dent in new 1larkets. Focus countries include the Latin American
countries, Israel and Japan. Japan is the fifth largest importer of leather & leather
products in the world. Japan now imports over USD15 million worth leather and leather
products from India. In fact, between 1998 - 99 and 2001-02, India's exports leather
products to Japan have more than doubled. According to the latest available provisional
data, exports in the first 10 months in fiscal 2002-03 to Japan stood at USD 7.53 million
against USD 7.30 m during the comparable period of 2001..02. CLE aims at raising
India's share in Japan's total imports of leather and leather products to 2 percent by 2005-
06 from the current level of 0.5 percent which in other words means forex earnings to the
tune of USD 70 m in next three years from the 2001-02 level of over USD 15 m.
5.1 About Council for Leather Exports (CLE)
The Council for Leather Exports was set up in July 1984. A non-profit company
registered under the Indian Companies Act, 1956, the Council functions under the
Ministry of Commerce, Government of India. The Council is entrusted with export
promotion activities and overall development of the Indian leather industry. The
Council's activities also include promoting Foreign Direct Investments and Joint
Ventures in the Indian leather industry. The CLE serves as a bridge between Indian
leather exporters and buyers all over the world.
Council's Services to the Indian Leather Industry
 Collecting, collating and disseminating world market intelligence
 Updating the information on global trends in fashion & design, product

development and adaptation
 Dissemination of information of commercial and technological nature

through seminars, news bulletins and magazines
 Organizing participation of Indian exporters in international fairs and

buyer-seller meets Sponsoring sales-cum-study teams and trade
delegations
 Inviting foreign experts for providing technological inputs to Indian

28
leather exporters
 Organizing international leather fairs in India
Council's Services to Overseas Buyer
 Serving as a focal point for disseminating information on Indian manufacturers

and exporters
 Organizing visits of buyers' delegations from different countries
 Liaising with various international organizations dealing with trade information
 Providing trade and commercial information on Indian leather industry
5.2 GLOBAL LEATHER INDUSTRY
The global leather industry is valued at about USD 85 billion.

Most of the producing countries are developing countries, while developed markets such
as the US are major consumers of leather products. The industry is buyer-driven, with
producing countries manufacturing in line with specifications, guidelines and technical
advice provided by the buyer countries.
China and Italy are the leading producing and exporting nations in the world with exports
worth USD 19 billion and USD 13 billion respectively. India, with an output of USD 4
billion and exports of USD 2.4 billion, is placed third. The leather industry occupies a
prominent place in the Indian economy in view of its substantial export earnings,
employment potential and growth. The industry provides employment to about 2.5
million people, of which 30 per cent are women.
Exports have risen from USD 1604 million in 1999-2000 to USD 2379 million in 2004-
05 at a CAGR of 8 per cent. India has a 2.32 per cent share in the global leather trade and
ranks eighth in the world in terms of the countries foreign exchange earnings from the
industry.
The composition of exports has also been changing, with more and more value added
products being exported. In 2004-05, for example, value added finished products
constituted around 80 per cent of the total exports from the industry, a far cry from 7 per
cent in 1956-57. The value addition is at present to the tune of 200 to 500 per cent. India
29
has plans to double its leather exports over the next 5 years It has been estimated that
India has the capacity to meet nearly 10 per cent of global leather requirement.
The Indian leather industry comprises the following key sub-sectors - tanning and
finishing, footwear, footwear components, leather garments and leather goods and
accessories. A large part (nearly 60-65 percent) of the production is done by the
small/cottage sector.
Leather and leather products production is centered in southern, northern and eastern
India. Key production units are located in Tamil Nadu, West Bengal, Uttar Pradesh,
Punjab, Karnataka, Andhra Pradesh, Haryana and Delhi. Tamil Nadu is the biggest
leather exporter in the country with the south accounting for 43 percent of the country’s
share. The industry uses primarily indigenous natural resources with little dependence on
imported resources.
5.3 Forms of Leather Exported
 Finished leather
 Footwear and components
 Footwear
 Components
 Leather garments
 Readymade Garments
 Leather goods
Footwear and Components
The footwear segment includes shoes, slippers and sandals. Shoe uppers and soles are
part of the foot wear components. India's per capita annual consumption of footwear is
around 1.5 pairs against the per capita annual consumption of approximately 5 to 6 in
developed countries like USA & UK. As leather footwear is costlier than other substitute
30
material footwear made from PVC, PU, Rubber, TPR etc., and the leather footwear
segment accounts for less than 25 per cent of the total footwear market in India. Thus, the
per capita consumption of leather footwear is less than 0.5 pairs The domestic production
of leather footwear and components has increased, from approximately 430 million pairs
in 1991-92 to 565 million pairs in 1994-95.
In future, the domestic demand is estimated to grow at a faster pace due to a rise in urban
population, rise in middle class population which has already crossed the 200 million
mark. A number of large players (with a few having tied up with international players)
have entered the shoe market and are developing brand culture in this segment. The
major domestic players in footwear are Bata, CSC, Aero, Liberty, Masco, Wasan,
Phoenixes. The exports (especially of shoe components) are also likely to grow, with a
number of large players setting up units with 75 per cent export commitment.
Increasingly major multinationals are shifting their production base to countries with
cheap labor costs. The overall demand for this segment is estimated to grow by more than
15 per cent p.a. in future. As part of the liberalization process, the government has
permitted the setting up of shoe and component manufacturing units by large players,
with an export commitment of 75 per cent.
Leather Garments and Leather Goods
The leather garments industry includes manufacture of jackets, trousers, skirts etc.
Leather goods include belts, wallets etc. The domestic production of leather garments and
leather goods was 3 million and 73 million pieces respectively. The bulk of leather
garments production is meant for export, due to lower domestic consumption on account
of weather conditions. India does not have a significant share in the world leather
garment market, inspite of its high potential. The future domestic demand for leather
garments may not grow as fast as the export demand. However, both the domestic and
export demand for leather goods are likely to grow at a fast rate, in future. A few major
corporate houses like Hindustan Lever, L&T, Ponds, and Tata Exports etc. have also
entered into marketing and exports of leather products.
As far as Saddlery goods are concerned, it is almost based on cottage and small scale
units. Kanpur is the only production centre of saddlery goods in India.
31
The Tanning Industry
The industry has a large tanning capacity per day but it utilizes only 60-70percent of its
installed capacity. The turnover of the tanning of the tanning industry is estimated at INR
80-90 billion for the year 1999-2000. The industry produces about 2 billion sq.ft of
finished leather of which only 10-15 percent valued at USD 240 million. is exported. The
problem relating to effective discharges of effluents which is a WTO compulsion is
increasingly threatening the small and medium scale tanneries all over the country. The
tanning industry is heavily dependent on indigenous raw hides and skins for its supply of
raw materials which is very fragmented. Imports are low despite exemption from customs
duties due to high import prices (3-4 times higher) and absence of appropriate machinery
to process the imported hides and skins. As international pressures to supply good quality
leather products mount, the leather manufacturers would have to increase the use of
imported hides and skins to improve the image of Indian Leather and Leather products. In
the Indian tannin sector, the tiny units primarily engage in producing semi-finished
leather, the small units engage in producing both semi-finished leather and finished
leather and the large units are usually fully integrated units. There are many drawbacks in
this industry, it needs to upgrade technology, it needs proper finance for high capital
investment, poor & erratic Raw material, production and process and infrastructure.
Footwear Industry
There are nearly 4000 units engaged in manufacturing footwear in India. The industry is
dominated by small scale units with the total production of 55percent. The total turnover
of the footwear industry including leather and non-leather footwear is estimated at INR
85-95 billion including INR1200-14,000 million in the household segment. India's share
in global leather footwear imports is around 1.4percent Major Competitors in the export
market for leather footwear are China (14percent), Spain (6percent) and Italy (21percent).
Leather Garments & Goods
These two segments are essentially dominated by the small scale sector with LSIs having
32
a very negligible share of less than 3percent in garments. Due to increased export
demand, the capacity for the leather garment industry has been rising and is presently 18
million pieces per annum. Production is placed at 12 million pieces per annum with
capacity utilization at 60-75percent with an aggregate turnover of INR 22,000 million.
The share of leather garments in total exports of leather and leather products has been
rising and is presently around 24percent, having grown at CAGR of 9percent, since 1995-
96 to reach INR 21,040 million in 2000-01. India's import in world import garments is
around 11 percent. Our main competitors are China, Italy and Turkey.
5.4 Export duty Changeable on Indian Leather products
vi. Export duty charged on Indian Leather goods

Duty Rate
S.No. Description of Article
(percent)
1. E.I tanned leather 15
2. Snake skin 10
3. Finished leather of goat, sheep and bovine animals and Nil
of their young ones
4. Raw fur Iamb skins 10
5. (a) Clothing leather fur suede/hair, hair-on Nil
suede/shearing suede leathers
(b) Fur leather
(c) Cuttings and fleshing of hides and skins used as raw Nil
materials for manufacturing animal glue gelatin
6. Luggage leather-case hide or side/suit case/hand bag 25
luggage/cash bag leather
7. Industrial leathers, namely: 15
(a) Cycle saddle leathers 15
(b) (i)Hydraulic/packing /belting/washer leathers 25
(ii) Industrial harness leather 15
8. Picking band leathers 15
9. Strap/combing leathers 15
10. Miscellaneous leathers, namely :
(a) Book binding leathers Nil
(b) Skiver leathers Nil
(c) Transistor case/camera case leathers 25
11. Fur of domestic animals, excluding Iamb fur skin Nil
12. Shoe upper leathers, namely:
(a) Bunwar leather Nil
(b) Kattai/slipper /sandalleather Nil
33
(c) Chrome tanned sole leather Nil
5.5 Global Exports vis-à-vis India's Export
 The global trade in leather and leather products increased over the years and has
reached USD 88 billion in 2004
 The export of Indian leather and leather products grew manifold over the past three
decades and its current share in global trade is 2.51 percent.
 In world import of leather, India's share is 2.24percent. the major exporting countries
of leather and their shares are Italy 23.39percent, Korea 9.60percent, the USA
6.80percent, Argentina 6.11percent, and Germany 5.72percent, whereas India's share
in world import of leather footwear is 1.43percent.
 The major exporting countries of leather footwear and their shares are Italy
16.62percent, China 15.00percent, Portugal 5.63percent, Spain 5.600,/0, Brazil
4.28percent, Indonesia 3.61percent, Germany 3.'6percent, Belgium Luxembourg
2.69percent, the UK 2.56percent etc.
 In world import footwear components, India's share is 4.96percent. The major

exporting countries of footwear components and their shares are Italy 20.12percent,
Korea 7.80percent, China 7.45percent, The USA 6.98percent , Romania 5.74percent,
Germany 4.63percent, Tunisia 3.15percent etc. .
 In world import of leather garments, India's share is 11.17percent The major

exporting countries of leather garments and their shares and China 39.22percent ,
Pakistan 9.24percent, Turkey 7.10percent, Italy 7.02percent, Germany 5.02percent ,
Korea 4.98percent, the USA 2.54percent etc.,
 In world import of leather goods, India's share is 7.08percent. The major exporting
countries of leather goods and their shares are Italy 21.65percent, China 16.52percent,
France 11.51 percent, the USA 5.22percent, Greece 4.83percent, Thailand
4.62percent, Germany 3.69percent etc.
34
 In world import of leather gloves, India's share is 9.62percent. The major exporting
countries of leather gloves and their shares are China 35.77percent, Pakistan
2.62percent, Germany 2.02percent, Italy 1.92percent, Hungary 1.57percent, Mexico
1.20percent etc.
 In world import of saddlery & harness, India's share is 8.27percent. The major
exporting countries of saddlery & harness and their shares are China 14.27percent,
Germany 11.34percent, the UK 10.55percent, the USA 7.41percent, Denmark
3.96percent, Mexico 3.68percent, Italy 3.68percent etc.
 In world import of non-leather footwear, India's share is 0.08percent. The major

exporting countries of non-leather footwear and their shares are China 26.03percent,
Italy 6.73percent, Belgium-Luxemburg 4.35percent, Indonesia 3.49percent, Spain
2.61percent, France 2.06percent, Thailand 1.79010, etc.
 India has stiff competition in international market from countries like China,
Vietnam, Thailand, Indonesia, etc., which are emerging as major manufacturing
countries.
6. USA – Country Profile

35
6.1 Economic Overview
GDP
Consumer spending decelerated, increasing 2.5 percent after increasing 4.8 percent. The
slowdown in consumer spending accounted for more than half of the slowdown in real
GDP growth.
 Business investment in equipment and software turned down, decreasing
1.0 percent, following a 15.6- percent increase.
 Exports decelerated, increasing 3.3 percent after increasing 14.0 percent.
 Inflation, as measured by prices for domestic purchases, increased 4.0
percent in the second quarter after increasing 2.7 percent. Excluding food
and energy, prices increased 2.9 percent, following a 3.0-percent increase.
Personal Income
1Wages and salaries, the largest component of personal income, increased
20.6 percent in June after remaining unchanged in May. Growth turned
3Up in private industries, reflecting a strong upturn in services industries.
 Interest and dividend income rose only slightly more than the previous month.
 Proprietors’ income increased 0.1 percent, after increasing 0.7 percent.
Balance of Payments
The U.S. current-account deficit decreased USD14.4 billion to D208.7 billion
(preliminary) in the first quarter of 2006.
Exports
36
Exports of goods and services increased USD 2.4 billion in June to USD120.7 billion,
reflecting an increase in goods exports. Services exports decreased.
 The increase in goods exports reflected increases in all major categories.
The largest increases were in capital goods, industrial supplies and
materials, and automotive vehicles, parts, and engines.
 The decrease in services exports reflected decreases in travel and other
private services.
Imports
Imports of goods and services increased USD2.2 billion in June to USD185.5 billion, as
both goods imports and services imports increased.
 The increase in goods imports was more than accounted for by increases
in consumer goods and automotive vehicles, parts, and engines. Industrial
supplies and materials and capital goods decreased.
 The increase in services imports mostly reflected increases in royalties and
license fees and passenger fares.
Industrial Growth
Real growth in the services sector slowed to 4.1 percent in 2005 due primarily to slower
growth in information and real estate and rental and leasing.
 Manufacturing increased 4.0 percent in 2005 and accounted for over 90
percent of the 2.6 percent growth in the goods sector.
 Information-communications-technology producing industries comprised
less than 4 percent of GDP and accounted for nearly 13 percent of real
GDP growth.
37
vii. Economic Indicators of United States

(Figures in USD)
Indicator Previous Current

Per Capita Income
27,551 27,640
(at Nov. 2005 currency rates)
Farm Sector Income 72.6 56.2
12.5percent 12.7percent
Poverty
(2003 Census) (2004 Census)
Consumer Price Index 0.4 0.6
March 2006 April 2006
0.5 0.9
Producer Price Index
March 2006 April 2006
Crude Oil Prices (USD/barrel) 70.38 72.14
April 28, 2006 May 5, 2006
4.1percent 1.1percent
Change in Gross Domestic Product
3rd Qtr 2005 4th Qtr 2005
Change in Corporate Profits 4.6percent (-) 4.0percent
2nd Qtr 2005 3rd Qtr 2005
Change in Personal Consumption 0.9percent 0.9percent
Expenditures November 2005 December 2005
Source: http://www.whitehouse.gov
6.2 Trade Policy Developments
On 18 May 2005, the US Committee for the Implementation of Textile Agreements

(CITA) announced to invoke safeguards on four categories of textiles and clothing
imports from China, including men's and boys' cotton and man-made fiber shirts, not knit
(category 340/640), man-made fiber trousers (category 647/648), man-made fiber knit
shirts and blouses (category 638/639), and combed cotton yarn (category 301
As a result, on A will request consultations with China on these products and, on the date
those consultations are requested, will put in place quotas that will limit the growth in
imports of the covered products. The quota level will be 7.5percent above the amount of
imports of these products from China entered during the first 12 months of the most
recent 14 months preceding the month in which the request for consultations is made.
The quota level will be prorated to respond to the number of days left in the year as of the
38
date of the request for consultations. Consultations must be held within 30 days of
China's receipt of the request, and will last for a maximum of 90 days. In the event a
mutually satisfactory solution cannot be reached by the conclusion of the consultations
period, the quotas will remain in place through the end of 2005.
On 13 May 2005, CITA announced to invoke safeguards on three categories of textiles

and clothing imports from China, including cotton knit shirts and blouses, cotton trousers,
and cotton and man-made fiber underwear. On 28 April 2005, CITA also agreed to
consider the textile safeguard petitions submitted on 6 April by a coalition of textile
industry groups. The products targeted by the petitions and subject to consultation are as
follows: men's and boys' cotton and man-made fiber woven shirts; cotton and man-made
fiber sweaters; cotton and man-made fiber brassieres; cotton and manmade fiber robes
and dressing gowns; other synthetic filament fabric; man-made fiber knitted shirts and
blouses; and manmade fiber trousers.
In a related development, the US Court of Appeals for the Federal Circuit (CAFC) issued
an order on 27 April lifting the preliminary injunction issued by the Court of International
Trade (CIT) on 30 December 2004. As such, CITA has resumed consideration of the
threat-based safeguard petitions submitted by the domestic industry during the fourth
quarter of last year until the courts decide the case of its merits. These petitions include
cotton yarn, cotton trousers, man-made fiber trousers, men's and boys' wool trousers,
cotton shirts, man-made fiber shirts, men's and boys' cotton and man-made fiber woven
shirts, cotton and man-made fiber underwear and other synthetic filament fabric; knitted
fabrics, cotton and man-made fiber brassieres and cotton and man-made fiber robes and
dressing gowns.
On 22 October 2004, the CITA determined that the US market for socks (Categories
332/432 and 632 Part) was being disrupted by imports from China, and that this situation
threatens to impede the orderly development of trade in these products. As a result, CIT
A has established a twelve-month limit on socks from China from 29 October 2004 to 28
October 2005.
39
On 5 April 2005, the US Department of Commerce (DOC) announced two major changes
to AO practices involving non-market economy (NME), including China. Under the new
practice, application for a separate AD rate will no longer be made by completing and
returning the Section A of the questionnaire to the DOC. Instead, an applicant should
complete an application form which will be posted for each investigation on DOC's
website. In addition, each exporter applying for a separate rate will be required to list all
the suppliers whose merchandise they export to the US during the period of investigation
or review. The dumping margin assigned by the DOC to an exporter will be a combined
rate, which is calculated from the rate of the exporter and those of the producers' which
supplied merchandise to it for export to the US.
Trade Rules and Regulations
Goods brought into the US are often subject to import duties, but import licenses are
generally not required. There are no foreign exchange controls over payments for
imports.
Imports are usually subject to ad valorem and/or specific import duties. Regular rates are
applied on imports from locations enjoying normal trade relations (NTR) or formerly
most favored-nation status, including Hong Kong and the Chinese mainland. Products
from some countries receive preferential import treatment via the US Generalized
Scheme of Preferences (GSP). CBP has final authority on tariff classification for duty
rates purposes.
The US rigorously enforces laws on dumping. When the DOC determines that a class of
foreign goods is being, or is likely to be, sold to purchasers in the US at less than its fair
value, an antidumping duty investigation may be conducted. The USITC is responsible
for conducting the final injury investigation. If all the determinations are affirmative, the
DOC will issue a duty order.
Imported goods are usually required to be marked with the country of origin in English.
The marking has to be permanent, legible and conspicuous. Additional labeling is
required on food, cosmetics, textiles and apparel, selected household products and
40
flammable fabrics.
Certain imported products must be approved by the proper US authority. For example,
certification by the Underwriters' Laboratory or ETL Testing Laboratories must be
obtained for electrical appliances, gas equipment and fire prevention apparatus. Under the
Convention on International Trade in Endangered Species of Wild Fauna and Flora
(CITES), the US requires specific documents for fur imports.
6.3 INDO-US LEATHER TRADE
Though US is the second largest importer of Indian leather and leather products after
Germany and UK, the Indo-US trade during the year 2004-05 has seen a significant jump
with 11.18 percent over and above the previous year 2003-04 trade value. The footwear
segment alone posted a growth of 15 percent over the previous year.
India's share in US leather garment sector in 2003 was 3.23percent, while during the
same year, leather goods accounts for 4.27percent and saddlery & harness 4.42percent.
The share of footwear is just above 1 percent. Therefore, there is immense potential for
Indian footwear in the US market, said Rafeeque Ahmed, chairman of CLE.
World leather and leather products market in 2003 was USD88 billion., out of which,
footwear constituted for USD 53 billion (60percent). The rest are leather garments and
accessories. Out of this nearly half the size of world footwear market (30percent world
footwear) is in US, the volume of which during 2003 was USD16, 083 million. It is this
segment, which is aimed by the Indian footwear companies to increase their exports to
US.
6.4 GOVERNMENT OF INDIA’S INITIATIVE
Ministry of Commerce, Government of India, has identified US as one of the "Focus

Markets" and is assisting CLE and individual exporters to reach the US footwear market.
CLE has engaged a marketing consultant MIs Footwear Consulting Group in 2002 to
chalk out the marketing strategy for the US market. As part of this strategy, CLE has
been taking part in WSA Fair in Las Vegas every year from 2002 and showcased Indian
products. CLE has also organized several Buyer-Seller-Meets (BSMs) during the WSA
fairs As a result, Wal-Mart, the biggest Retailer Stores of US visited India during Nov
41
2003 and since then started outsourcing from Indian companies. Today, Wal-mart is
sourcing its products from at least five Indian firms and the trade turnover for Wal-Mart
operations alone is expected to touch USD 80 million to USD l00 million in 2006.
42
7. CANADA – Country Profile
7.1 About the Country
A land of vast distances and rich natural resources, Canada became a self-governing
dominion in 1867 while retaining ties to the British crown. Economically and
technologically the nation has developed in parallel with the US, its neighbor to the south
across an unfortified border. Canada's paramount political problem is meeting public
demands for quality improvements in health care and education services after a decade of
budget cuts. The issue of reconciling Quebec's francophone heritage with the majority
Anglophone Canadian population has moved to the back burner in recent years; support
for separatism abated after the Quebec government's referendum on independence failed
to pass in October of 1995.
7.2 Economy - Overview
As an affluent, high-tech industrial society, newly entered in the trillion dollar class,
Canada closely resembles the US in its market-oriented economic system, pattern of
production, and affluent living standards. Since World War II, the impressive growth of
the manufacturing, mining, and service sectors has transformed the nation from a largely
rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade
Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA)
(which includes Mexico) touched off a dramatic increase in trade and economic
integration with the US. Given its great natural resources, skilled labor force, and modem
capital plant Canada enjoys solid economic prospects. Solid fiscal management has
produced a long term budget surplus which is substantially reducing the national debt,
although public debate continues over how to manage the rising cost of the publicly
funded healthcare system. Exports account for roughly a third of GDP. Canada enjoys a
substantial trade surplus with its pr41cipal trading partner, the United States, which
absorbs more than 85percent of Canadian exports.
43
viii. Economic Indicators of Canada in 2006

Indicator Unit Value
Population Estimate - Canada - 32,501,147
Consumer Price Index - Total 1992=100 130.5
Unemployment Rate percent 6.4
Real GDP Growth Rate percent 2.9
Target for the Overnight Rate1 percent 4.25
Prime Interest Rate2 percent 6.0
Employment - 16,504,800
Labour Productivity - percent
percent 0.5
Change, Seasonally Adj.
Corporate Operating Profits CAD 56,100,000,000
Merchandise Imports CAD 32,807,000,000
Merchandise Trade Surplus CAD 4,748,000,000
percent
Real Gross Domestic Product 0.9
Change
Money Supply (M1) CAD 150,019,000
Industrial Product Price Index 1997=100 113.7
Source: http://www.canadianbusiness.com
7.3 Trade Policy
Canada maintains a liberal trade regime. There are no foreign exchange restrictions, and
import licenses are only required for a limited number of goods. Imports are generally
subject to import duties.
Import licenses are required for items regulated under the Export and Import Permits Act.
The Act lists various agricultural products (poultry, eggs, and dairy products), a number
of textile and clothing items, and certain steel products.
The importation of certain commodities is however tightly controlled. Examples of

regulated goods include: food products, clothing, drug and medical devices, hazardous
products, some offensive weapons and firearms, endangered species and motor vehicles.
As agreed in the Agreement on Textiles and Clothing (ATC), the majority of textile and
clothing products of Hong Kong origin are subject to import quotas by Canada. In
compliance with the Phase 3 of the ATC liberalization process, effective from January 1,
2002, Canada removed 9 categories of Hong Kong textile and clothing products
fully/partially from quota restrictions. According to the ATC, all quotas on textiles and
clothing will be eliminated by 1 January 2005.
44
Duties are assessed on the transaction value (the price actually paid or payable for the
goods), including commission, brokerage, packing, royalties and transportation to the
Canada point. Hong Kong and China origin goods are eligible for the preferential tariffs
under the Canadian General Preferential Tariff (GPT) Scheme.
A provincial sales tax (PST) is assessed on all imports to British Columbia (7.5 percent of
the duty paid value), Manitoba (7 percent), Ontario (8 percent), Prince Edward Island (10
percent), Quebec (7.5 percent) and Saskatchewan (6 percent). Additionally, a broad-
based value-added sales tax, known as the goods and services tax (GST), is levied at
7percent. In the three Atlantic provinces (Newfoundland, New Brunswick and Nova
Scotia), the PST and GST were combined in April 1997 to form a harmonized sales tax
(HST) at a standard rate of 15percent for all goods and services. In addition, excise taxes
are charged on goods such as tobacco; wine; jewellery; some heavy automobiles;
automobile air conditioners; and gasoline, diesel fuel, aviation gasoline and aviation fuel.
Canada may impose anti-dumping duties on imports considered to be priced less than the
"nominal" price charged in the exporter's domestic market and caused material injury to
the concept industry in Canada. Currently, Canada imposes anti-dumping duty on seven
items from the Chinese mainland, including waterproof rubber footwear; women's leather
and non-leather boots; bicycles; garlic; hot-rolled carbon steel plate and sheet; waterproof
footwear and bottoms; leather footwear (metal toecaps); xanthenes and steel pipe nipples,
couplings and fittings.
Canada requires bilingual labeling (English and French) for most products. Bilingual
designation of the generic name on most pre-packaged consumer products is required
under the federal Consumer Packaging and Labeling Act. Under this Act, the product
identity declaration, net quantity declaration and dealer's name and principle place of
business must appear on the package/label of a consumer good sold in Canada.
The agency responsible for inspection of imports, Canada Customs and Revenue Agency,
also requires an indication of the country of origin on several classes of imported goods.
Goods not properly marked will not be released from Canada Customs \ll1til suitably
marked. In general, environmental claims that are ambiguous, misleading or irrelevant, or
that cannot be substantiated, should not be used.
45
METHODOLOGY
Nature of Study
The Thesis study in subject now is an exploratory study with a touch of descriptive
research. Fundamentally it is a Secondary Data Study.
Data Collection
Types of Data Collected
The data collection technique is solely secondary. The following types of secondary date
have been collected and used for the study.
 Quantitative
 Qualitative
 Descriptive data
 Insightful information
Data Collection Procedure
Qualitative and descriptive data where ever sought were collected and excerpts from such
article or reports have been put together. Those pieces of data are patched together in the
logical flow. Then the paragraph is rephrased to fit into the required context.
In case of Quantitative data the pieces of data have been dumped together. Then such
data is sanitized for consistency and reliability. Then such cluster of quantitative data is
used according to the situation demands, in a logical flow.
To explain it in a lucid manner, let us consider an example of collecting Data tables that
represent the break-up of the imports in the “Demand Side Analysis” section in this
report. First of all a big dashboard of table was copied from the source, then the unwanted
rows and columns were removed from it. The currency has been converted into the
uniform template. Then the sum total of such data has been obtained from following the
above stated steps.
46
Mode of Data Collection
Internet is the only source for obtaining the data for this Thesis. However for converting
the data into the usable format and context MS Word and MS Excel have been
extensively used.
Type of Data Analysis
Analytical Tools
Simple mathematical, statistical and business tools have been used for analysis of this
study.
Examples of Tools Used
 Simple Percentages and growth rates have been used as a part of

Mathematical tools.
 Using statistical tools like GAP, the complex data has been tabulated and
drawn into charts and analyzed subsequently.
 As a part of business tools, SWOT analysis has been adopted for

classifying and understanding the qualitative data and hence coming out
with the required conclusions.
Considerations
The study must include all the basic knowledge about the industry and Economies
involved in the study. For this purpose, an extensive understanding of the different
aspects of links involved in the whole value chain of the study had to be carried out. Once
the reader felt the gasp of the topic and nitty-gritty’s involved, I have introduced him to
various combination of the quantitative data relevant to the topic. Then it is time to
summarize and identify the key pieces of information. The right kind of analytical tools
(Gap analysis and SWOT in this case) have to be identified which would take us to the
conclusions.
47
ANALYSIS
8. Supply Side Analysis

8.1 Quick Facts About Indian Leather Market
 India is the country with largest livestock, holding 21 percent large animals and
11percent small animals.
 A source for 10percent global leather requirements.
 Annual production value over USD 4 billion.
 Annual export value over USD 2 billion.
 Export growth CAGR 8.20percent (2000-04).
 About 2.50 million workforces (30percent women).
 Promising technology inflow and Foreign Direct Investment
 Top priority to occupational safety and work environment
 Enormous potential for future growth (domestic as well as export)
ix. Sources of Production of Leather

Name of the State Locations
Andhra Pradesh Hyderabad, Guntur, Vijayawada, Rajamundry, Vizianagaram
Bihar Ranchi, Muzzafarpur, Biharishariff, Patna, Dharbhang Gaya
Gujarat Ahmedabad, Sarvakundala, Junnagadh, Rajkot, Bharuch,
Surat, Baroda
Jammu & Kashmir Srinagar, Anantanag, Jammu
Kerala Trivandrlun, Trichur, Quilon, Calicut, Emakulam
Madhya Pradesh Bhopal, Indore, Gwalior, Jabalpur
Maharastra Bombay, Sholapur, Kolhapur
Rajasthan Jaipur
Tamil Nadu Timchi, Madras
Uttar Pradesh Kanpur
West Bengal Calcutta
Assam Guwahati
Meghalaya Shillong
Karnataka Bangalore, Belgaum
Delhi Delhi
Punjab Jalandhar, Amritsar
Orissa Cuttak, Berhampur
48
I. Important Hubs for Leather Production in India
Source: http://ibef.org
Livestock
The total number of live stock including Buffalos, Sheep, Goats, Pigs, Horses and Ponies,
Mules, Donkeys, Camel, Yaks and Mithun available as on 2003 in India were 485
million. The value of output of the Livestock was worth INR 24.33 billion.
49
8.2 Market Size

The Indian leather exports are targeted to grow from the present size of USD 2.4 billion
to over USD 5billion by 2010.
x. Category-wise Leather Producing Firms

Name of the Category Number of firms
Barcodes, Stickers & Labels 406
Fashion And Designer Bags 614
Finished Leather 600
Footwear, Shoes, Components & Accessories 895
Horse & Animal Clothings and Accessories 97
Leather Bags, Purses, Wallets & Cases 1024
Leather Chemicals 103
Leather Diaries, Journals, Notebooks & Other Leather 67
Stationery Items
Leather Garments 528
Leather Goods & Accessories 1524
Leather Laces, Cords, Threads, Straps & Other Leather Craft 43
Supplies
Merchant Traders 243
Miscellaneous Garment, Textile & Leather Accessories 1577
Threads, Laces, Pads, Linings & Other Sewing Accessories 445
Total number of firms 8166
Source: http://dir.indiamart.com
Estimated Production Capacity of the Indian Leather Industry
xi. Leather Production by Category

Product Capacity (million pieces per annum)
Leather
Hides 65
Skins 170
Leather Products
Leather Footwear 909
Leather Shoe uppers 100
Non-leather Footwear 1056
Leather Garments 16
Leather Goods 63
Industrial Gloves 52
Saddlery 0.10
Source: http://www.leatherindia.org
50
8.3 Performance of Leather Exports in the Past

Export of leather and leather manufactures recorded a marginal decline of 1.0percent
during April-November, 2005. The value of export decreased to INR 6812 0 million from
INR 6876 0 million during the corresponding period of the previous year. While exports
of leather manufactures registered a decline of 6.9percent, exports of Leather Footwear
increased by 11.0percent in 2004-05.
Exports by Product Category
II. Breakup of Total Indian Leather Exports in 2005 - 06
Value of Total Exports - USD 2694.6 million
12%
24%
7%
3%
3%
29%
22%
Leather Goods Saddlery and Harness Non-Leather footwear Finished Leather

Leather Footwear Footwear Components Leather Garments
xii. Value of Indian Leather Products Exported During 2005 – 06

51
(Figures in million USD)
APR-MAR APR-MAR Percentage

CATEGORY
2004 - 05 2005 - 06 Variation
Finished Leather 607.73 606.06 -0.28percent
Leather Footwear 657.78 786.76 19.61percent
Footwear Components 179.21 179.04 -0.10percent
Leather Garments 329.44 328.44 -0.30percent
Leather Goods 585.72 649.14 10.83percent
Saddlery and Harness 61.71 76.40 23.81percent
Non – Leather Footwear 73.78 68.75 -6.82percent
TOTAL 2495.37 2694.59 7.98percent
Source: http://www.leatherindia.org
Looking at the Indian exports of various product categories to the world in the recent
past, there is no doubt with the fact that there has been some continual growth in the
volumes of leather goods. And there has been consistency in the share of Finished
Leather, Leather Footwear and Non-Leather Footwear in the total exports has been
consistent.
III. Value of Leather and Leather Products Exported During 1999 - 2005
52
Export Value In million USD
2004-05
2003-04
2002-03
2001-02
2000-01
1999-2000
0 500 1000 1500 2000 2500 3000

Finished Leather Leather Footwear Footwear Components
Leather Garments Leather Goods Saddlery and Harness
Leather Gloves Non – Leather Footwear
Derived: http://www.leatherindia.org
Indian Exports by Geographic Locations

xiii. Some of the Top Destinations Including Canada for Indian Leather Exports
COUNTRY 1999- 2000 2000- 01 2001- 02 2002-03 2003-04 2004-05
USA 258.24 342.78 286.89 246.44 251.58 279.70
Germany 293.59 307.17 304.46 272.53 329.82 336.69
UK 266.29 270.09 248.89 240.96 250.65 299.21
Italy 165.47 241.07 263.11 255.92 285.02 242.60
Spain 66.72 100.75 101.30 110.56 161.23 169.21
Hong Kong 55.22 98.32 121.43 165.70 226.97 236.52
France 84.36 90.68 89.72 88.43 109.82 132.73
Netherlands 44.17 55.56 60.50 50.95 57.75 63.32
Canada 21.42 26.66 27.81 24.81 25.59 28.19
Others 94.37 122.48 132.78 131.34 179.55 209.30
TOTAL 1604.35 1963.5 1936.4 1875.21 2216.45 2379
Looking at the Indian leather exports to various geographies, we can make out that
Germany, US and UK have been biggest markets for leather exports to it. In the year
2005, US have occupied third position in terms of volumes of world leather exports from
India and Canada occupies 9th position.
India’s Leather Imports

53
India is not only an exporter of leather but also an active importer of raw and processed
leather.
xiv. Leather Imports by India
Apr – Mar Apr – Mar

Commodity Percentage Growth
2004 – 05 2005 – 06
Raw Hides and Skin 50.21 58.08 15.66percent

Leather 212.70 232.41 9.27percent
TOTAL 262.91 290.49 10.49percent
Source: http://commerce.nic.in
8.4 Trade with North America

Here we consider the volumes of leather exports to North America and its share in the
total world exports from India. The figures show that US had a considerable share in
Leather Footwear exports and comparatively higher share in Leather category as well. In
Raw Hides and Skins North American region had a meager share in 2005.
xv. Exports of Broad Categories of Leather to USA and Canada from India
54

Product Total
Period USA Canada
Category Exports
FY: 2004-05 12.72 1.70 607.73
FY: 2005-06 11.82 1.32 606.06
Share in category exports in
Leather 1.95percent 0.22percent 100percent
2005-06
Percentage change during last
-7.05percent -22.67percent -0.28percent
two years
FY: 2004-05 93.18 7.70 657.78
FY: 2005-06 119.17 9.81 786.76
Leather Share in category exports in
Footwear 15.15percent 1.25percent 100percent
2005-06
27.89percent 27.35percent 19.61percent
two years
FY: 2004-05 1.54 1.30 179.21
FY: 2005-06 1.89 1.45 179.04
Footwear Share in category exports in
Component 1.06percent 0.81percent 100percent
2005-06
22.93percent 12.26percent -0.10percent
two years
Raw Hides FY: 2004-05 0.87 0.08 50.21
& FY: 2005-06 1.86 0.07 58.08
Skins two years
113.23percent -18.76percent 15.66percent
8.5 Competitive Scenario

India’s Ranking in the World Leather Exports
India stands 8th in the world’s exports, considering its value of leather exports as a share
of world’s total Leather exports (supplies)
xvi. Top 10 Exporters of Leather as a Share of the World’s Exports
Country 2000 2001 2002 2003 2004
CHINA (%) 18.78 19.50 21.57 22.46 23.44
ITALY (%) 16.79 17.42 17.27 16.79 16.85
HONG KONG (%) 13.82 12.47 12.17 11.20 11.12
FRANCE (%) 3.45 3.61 3.71 3.91 4.14
GERMANY (%) 3.22 3.42 3.89 3.75 3.96
BRAZIL (%) 3.32 3.47 3.42 3.24 3.61
SPAIN (%) 3.36 3.51 3.75 3.50 3.36
INDIA (%) 2.76 2.61 2.51 2.57 2.61
USA (%) 3.01 2.72 2.51 2.28 2.55
BELGIUM (%) 2.09 2.56 2.75 2.44 2.39
55
Derived from: http://www.leatherindia.org
India stands 4th, when considered its value of Leather exports as a share of world’s total
Leather imports (demand).
xvii. Top 10 exporters of Leather as a Share of the World’s Imports
Country 2000 2001 2002 2003 2004
CHINA (%) 17.77 18.23 19.73 21.42 21.99
ITALY (%) 15.89 16.28 15.80 16.0 15.81
BRAZIL (%) 3.14 3.25 3.13 3.09 3.39
INDIA (%) 2.54 2.40 2.29 2.47 2.44
ROMANIA (%) 1.09 1.31 1.55 1.74 1.71
KOREA REP. (%) 3.19 2.68 2.23 1.81 1.63
INDONESIA (%) 2.49 2.16 1.60 1.48 1.53
TAIWAN (%) 1.97 1.63 1.59 1.39 1.26
TOTAL IMPORTS 77331.26 80602.47 81895.61 89825.08 97606.18
Derived from: http://www.leatherindia.org
India’s Share in the Global Imports of Leather Products

India’s shares in the world-wide imports of various leather product categories are as
follows:
xviii. India’s Share in the Broad Categories of Global Leather Imports
CAGR
Category Details 1999 2000 2001 2002 2003 previous
5 years
W.I 12789.88 14965.69 16197.23 15882.95 17052.57 5.58

Leather
% 1.88 5 % 2.55 % 2.84 % 3.20 % 3.26 15.99
W.I 26901.92 27598.13 28908.00 30600.23 33297.17 4.53

Leather
Footwear
% 1.40 % 1.38 % 1.37 % 1.38 % 1.66 % 11.54
W.I 4537.86 4446.66 4598.18 4374.37 4612.19 -0.02

Footwear
Components
% 4.74 % 5.35 % 5.09 % 4.00 % 3.50 % -7.47
Leather W.I 3162.00 4457.92 4771.19 4223.19 4131.86 4.70
56
Garments % 10.98 % 10.33 % 7.94 % 6.44 % 7.29 % -4.39
W.I 5366.96 5862.81 6173.66 6601.73 7412.44 7.01

Leather
Goods
% 5.19 % 5.86 % 5.21 % 5.08 % 5.44 % 5.31
W.I 1336.72 1391.41 1358.07 1364.58 1470.07 -0.36

Leather
Gloves
% 7.32 % 6.94 % 6.31 % 6.60 % 9.25 % 7.61
W.I 416.60 447.84 464.07 497.99 593.81 9.40

Saddlery &
Harness
% 8.19 % 9.53 % 7.68 % 8.77 % 8.88 % 10.02
W.I 54511.97 59170.47 62470.42 63545.05 68570.14 4.61

TOTAL
% 2.92 % 3.29 % 3.06 % 2.91 % 3.15 % 5.72
[W.I – World Imports (million USD)] [percent - India’s exports as a percentage of W.I]
8.6 Exports Promotion Measure for Leather Industry in India

As a part of the promoting measures of Leather and Footwear exports, following
initiatives have been announced by ministry of commerce in the 2006- 2009 Foreign
Trade Policy.
Leather and Footwear
 Duty free import entitlement of specified items shall be 5percent of FOB value of
exports during the preceding financial year.
 The duty free entitlement for the import of trimmings, embellishments and
footwear components for footwear (leather as well as synthetic), gloves, travel
bags and handbags shall be 3percent of FOB value of exports of the previous
financial year. The entitlement shall also cover packing material, such as printed
and non printed shoeboxes, small cartons made of wood, tin or plastic materials
for packing footwear.
 Machinery and equipment for Effluent Treatment Plants shall be exempt from
basic customs duty.
57
 Re-export of unsuitable imported materials such as raw hides & skins and wet
blue leathers is permitted.
 CVD (Countervailing Duty) is exempted on lining and interlining material
notified at S.No 168 of Customs Notification No 21/2002 dated 01.03.2002.
 CVD is exempted on raw, tanned and dressed fur skins falling under Chapter 43
of ITC (HS).
 Approval for 117 (includes multi-product Zones) new SEZ s have been already
given, these SEZs would work with private sector coordination. Out of those 117
SEZs , 6 SEZs are already operational.
Problem Areas in Export Promotion Measures
 No separate SEZ for promotion of Leather Exports
 Neither SEZs nor EOU are designed for the development of leather
industry
9. Demand Side Analysis
9.1 North America’s Total Leather Imports

xix. Value of the Leather Apparel Imported by the U.S. in the Recent Past
58
(In million USD)
Country 2000 2001 2002 2003 2004 2005

China 1,193.6 1,258.2 1,081. 1,061.3 916.9 801.4
Italy 86.3 108.2 88.5 86.2 75.3 67.3
India 128.8 129.4 77.3 69.7 68.8 50.1
Pakistan 70.3 66.6 67.3 59.9 47.1 41.1
Turkey 22.7 24.8 21.7 21.4 13.0 13.8
France 13.7 14.2 13.0 11.9 10.4 9.1
Canada 23.4 19.2 15.6 13.1 11.3 9.1
Hong Kong 12.0 15.7 11.1 12.0 10.2 7.0
Korea 67.6 42.4 28.4 169 11.8 5.2
Indonesia 71.8 71.1 45.1 9.9 7.1 4.1
Switzerland 0.6 1.2 0.1 0.2 2.8 3.5
Mexico 5.5 4.1 3.6 3.1 3.8 3.3
Romania 0.5 1.3 1.8 1.0 1.2 2.0
Poland 1.1 2.3 1.4 1.0 1.8 1.6
Germany 2.5 2.1 1.5 1.5 1.2 1.5
Spain 2.5 2.5 2.3 2.0 1.6 1.5
United Kingdom 2.9 2.5 2.7 2.7 1.6 1.3
Slovenia 1.1 2.6 0.9 1.6 1.3 1.1
Ukraine 0.02 0.05 0.1 0.1 0.6 0.9
Philippines 11.4 4.9 1.7 0.9 0.8 0.7
Uruguay 0.8 0.7 0.6 0.4 0.7 0.6
Sri Lanka 0.1 0.03 0 0.1 0.7 0.5
Argentina 1.3 0.3 0.6 0.6 0.5 0.4
Brazil 0.3 0.1 0.1 0.3 0.6 0.3
Tunisia 0.01 0.002 0.09 0.4 0.3 0.3
Others 7.4 7.6 6.6 5.1 5.1 2.8
TOTAL 1,729.4 1,783.1 1,474.9 1,384.6 1,197.6 1,031.6
Source: http://www.ita.doc.gov
The leather imports by both U.S. and Canada over the last few years are as follows:
xx. Imports of Leather by the North America in the Recent Past
(In million USD)
Country 2000 2001 2002 2003 2004

USA 20701.7 20964.1 20930.4 21155.5 22386.4
CANADA 1537.2 1537.2 1571.4 1653.5 1804.6
TOTAL 77331.2 80602.4 81895.6 89825.0 97606.1
59
Source: http://commerce.nic.in
xxi. Value of the Leather Apparel Imports by Canada in the Recent Past
(In million USD)
Country 2001 2002 2003 2004 2005

China 904.2 948.1 947.6 1,016.2 1,112.4
Italy 274.1 279.2 231.4 201.8 166.4
US 147.8 139.7 113.0 113.7 116.8
Brazil 83.7 99.5 102.7 121.0 110.5
Vietnam 43.6 60.6 66.1 82.1 104.5
Mexico 12.5 11.1 37.4 48.6 49.3
India 33.9 33.3 30.3 31.0 34.4
France 18.2 21.5 22.1 27.1 24.3
Thailand 27.2 30.6 28.2 24.0 23.4
Indonesia 48.2 48.3 36.5 23.9 23.2
OTHERS 301.5 304.9 257.4 244.2 219.4
TOTAL 1,894.8 1,976.9 1,872.6 1,933.7 1,984.8
Source: http://strategis.ic.gc.ca
In case of the U.S., Canada is the top 7th source for the imports of Leather products where
as in case of Canada, U.S. occupies 3rd position as the most preferred source for Leather
imports. The volumes of Leather products exported by India to Canada are comparatively
far less than what it exports to the U.S.
U.S. Imports of Leather Products by Category

xxii. Value of the Leather Imports by the U.S. in the Recent Past
(In million USD)
Category 2000 2001 2002 2003 2004

Finished Leather 4,647.0 4,138.8 3,861.2 3,484.3 3,798.3
Leather Footwear 15,664.1 16,013.3 16,164.2 16,416.3 17,405.8
Footwear Components 9,793.5 10,147.6 10,669.1 11,008.7 11,601.6
Leather Garments 9,569.6 9,890.1 9,113.3 9,102.0 9,016.5
Leather Goods 362.0 379.9 447.6 535.0 581.4
Leather Accessories 595.3 636.1 692.6 675.7 765.7
Raw Hide/Skin 205.5 196.3 173.2 159.3 184.0
60
Derived from: http://www.intracen.org
Canadian Imports of Leather Products by Category

xxiii. Value of the Leather Imports by Canada in the Recent Past
(In million USD)
Category 2000 2001 2002 2003 2004

Finished Leather 1,081.3 969.5 929.6 905.0 940.6
Leather Footwear 1,000.1 1,019.3 1,063.6 1,113.5 1,223.4
Footwear Components 567.3 574.2 609.1 652.0 715.5
Leather Garments 692.8 723.1 719.9 764.6 832.2
Leather Goods 39.0 39.0 48.4 118.2 150.0
Leather Accessories 64.3 63.6 63.8 70.1 78.0
Raw Hide/Skin 113.4 107.0 109.4 104.1 95.7
TOTAL 3,558.1 3,495.7 3,543.9 3,727.6 4,035.3
Derived from: http://www.intracen.org
9.2 U.S. Trade Policy on Footwear and Leather Products
Trade and Tariffs
The footwear, leather, and leather goods sector is defined by footwear, its components,
leather goods, and travel goods. Footwear, leather, and leather goods accounted for
approximately D434,000 or 0.12 percent of total U.S. non-textile industrial exports to
Oman in 2003. Top U.S. exports in the sector are metal toecap footwear and travel cases.
Oman applies a 5 percent tariff on footwear, leather, and travel goods that enter the
61
country. Oman did not export any footwear, leather, or travel goods to the United States
in 2003.
The United States applies tariffs of 0 to 58 percent on products in this sector, with the
highest effective tariffs on rubber footwear. The average applied tariff for footwear,
leather and leather goods is 16 percent.
Tariff Elimination
The U.S.-Oman FTA will eliminate all industrial tariffs in the United States and Oman
within 10 years of implementation. Tariffs will be phased out according to three tariff
elimination categories: 1) immediate elimination, 2) equal cuts over 5 years, and 3) equal
cuts over 10 years
Footwear
Currently, the United States grants 14 percent of footwear products duty-free treatment.
Upon implementation of the agreement, the United States will grant duty-free treatment
for an additional 71 percent of footwear products from Oman. The United States will
phase out the remaining tariffs on seventeen rubber footwear products over the course of
ten years Oman currently applies a 5 percent tariff on 100 percent of footwear products.
Upon implementation of the agreement Oman will grant 100 percent of imports of
footwear products from the United States duty free treatment immediately.
GAP ANALYSIS
10. Demand – Supply Gap

10.1 Calculation of the Net Imports of the North America
xxiv. Net Imports of Leather Products in North America
62
Particulars Item 2001 2002 2003 2004 2005

Total Imports of US A 1,783.1 1,474.9 1,384.6 1,197.6 1,031.6
Total Imports of Canada B 1,894.8 1,976.9 1,872.6 1,933.7 1,984.8
Imports from Canada by C 19.2 15.6 13.1 11.3 9.1
US
Imports from US by
D
Canada 147.8 139.7 113.0 113.7 116.8
Net Imports of US E= (A-C) 1,763.9 1,459.3 1,371.5 1,186.3 1,022.5
Net Imports of Canada F= (B-D) 1,635.3 1,335.2 1,271.6 1,083.9 914.8
Net Imports E+F 3,399.2 2,794.5 2,643.1 2,270.2 1,937.3
10.2 Calculation of Net Exports from India to North America

xxv. Net Imports of Leather Products in North America
Particulars 2000 2001 2002 2003 2004 2005
Total Exports to US 258.24 342.78 286.89 246.44 251.58 279.70
Total Exports to Canada 21.42 26.66 27.81 24.81 25.59 28.19
Net Exports 279.66 369.44 314.7 271.25 277.17 307.89
(Figures in million USD
10.3 Demand -Supply Gap for Leather Trade with the USA
Citing at the chart below, we can observe that the Indian Leather exports have stagnated
over last five years. However, the share of India in the total US Leather imports has
increased over the last five years. But it is also obvious that the demand for leather
imports has been coming down for US in the analyzed period. In 2005, Indian Exports
would form almost a quarter of total US Imports in comparison to little over 20percent of
total US Leather imports in 2001.
IV. Demand-Supply Gap with USA

63
(Trade Value In million USD)

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2001 2002 2003 2004 2005
US Imports Indian Exports
10.4 Demand -Supply Gap for Leather Trade with Canada

Though the picture is self illustrative of the obvious point, It could be said that Canada
has a huge potential for Indian Leather exports. So far the Indian exports have been
around 1-2percent of the total Canadian Imports. Though the demand is being met by
other exporting countries like China and Italy, India has to strategies and create attractive
trade situation for Canada.
V. Demand-Supply Gap with Canada
(Trade Value In million USD)
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
2001 2002 2003 2004 2005
Canada's Imports Indian Exports

64
10.5 Demand -Supply Gap for Indian Leather Trade with North
America
The demand for Leather Imports in the whole North American region (UAS and Canada)
has come down from close to USD 3500 million in 2001 to close to USD 2000 million by
2005. The share of Indian exports to North American region had been almost stagnated
over the last 5 years. So the share of Indian exports has increase from close to 14percent
in 2001 to around 17percent by 2005.
However, the Indian Leather Exports across the world had been gradually increasing in
the study period. There had always been negative correlation between total Indian
Leather Exports and the total North American Importing trends.
VI. Demand-Supply Gap with North America

(Trade Value in million USD)
3500
3000
2500
2000
1500
1000
500
0
2001
2002 2003
2004
2005
Indian Exports to North America Total Indian Exports North American Imports
65
SWOT ANALYSIS
11. Strengths and Weaknesses for Indian Leather Industry
11.1 Strengths
Raw Material Base
The raw material base in the country is enormous with a population of 212 million cattle,
96 million buffaloes, 144 million goat and 53 million sheep. According to the latest
census, India ranks first among the major livestock holding countries in the wood. These
four species provide the basic raw material for the leather industry.
The annual availability of 65 million pieces of hides and 170 million pieces of skin is the
main strength of the industry. Some varieties of goat, calf and sheep command premium
position in the world market considering their premium quality.
Technology
The up gradation of technology in the tanning sector meeting the international
environment standards, the capabilities in the design development of leather products
particularly of footwear and up gradation of machinery and preparedness to adopt to the
changing fashions and consumer requirements are some of the remarkable strengths of
Indian leather sector. A number of institutions such as CLRI, FDDI, NID,NIFT, etc. have
been set up to support the Indian industry in R&D; HRD, testing and quality control,
design and product development.
Employment and Wages are Down

The number of production employees working in the Leather Industries in 1996 declined
7.4percent to 9,169 and their overall wage bill declined 6.1percent from the previous
year. It should be noted that the Footwear Industry alone employed 68percent of the
production employees. The average annual wage per employee rose 1.4percent to
D20,627, (compared with D34,507 for all Manufacturing Industries). In terms of hourly
wages, this increase represents ten cents per hour. Employee’s hours paid also decreased
by 7percent during 1996, (compared to a decrease of 1.4percent for All Manufacturing).
66
The Leather Industries continue to have the second lowest hourly wage rate in the
manufacturing sector after the Clothing Industries.
According to the results for the monthly, the average hourly earnings for employees of
major group 17 fell 1.7percent during the 1997 period, to D11.31, and preliminary figures
for 1998 indicate that hourly wage levels will not have returned to 1996 levels for hourly
paid workers in the Leather Group by year-end. During 1997 the number of hourly paid
employees increased 2.2percent.
Availability of Low Cost, Skilled Labour
India’s advantage as a source of low cost, skilled labour is quite relevant to industries
such as manufacturing of leather goods and footwear that are relatively labour intensive.
India has among the lowest cost of labour among key footwear producing countries. In
addition to low costs, India also has the world’s largest technically trained manpower in
leather craft. The twin advantages of low cost and technical skills offer India a distinct
competitive advantage in this industry.
Availability of Raw Materials
India is the largest livestock holding country with 21 per cent of the large animals and 11
per cent of small animals in the world. The large population of cattle, buffaloes, goat and
sheep that the country possesses ensures that India has ten per cent of the world’s raw
material base. In addition, some of the leather available in India is premium quality and
much sought after.
Availability of Supporting Institutions
India has institutions that support the leather industry in specific areas such as product
development, design and R&D. These institutions enable capability building in the
industry and help it become globally competitive.
Product Development/ Design
A design development centre for leather garments and leather accessories is underway
under the joint efforts of the Council for Leather Exports and the National Institute of
Fashion Technology (NIFT). The design development centre functions from the NIFT
campus in New Delhi.
67
Research and Development Capabilities
The Central Leather Research Institute (CLRI) (is the world’s largest leather research
institute. CLRI today, is a central hub in Indian leather sector with direct roles in
education, research, training, testing, designing, forecasting, planning, social
empowerment and leading in science and technology relating to leather. State-of-art
facilities in CLRI support innovation in leather processing, creative designing of leather
products and development of novel environmental technologies for the leather sector.
11.2 Weakness
Prices are on Rise
If the average increase (3.2percent) in price, during 1996, for commodities of major
group 17 is taken into account by using constant dollars, calculated using the I
(1992=100), the real decrease in shipments during 1996 would have been 6.9percent (as
opposed to the 3.8percent decrease in current dollars). The increase in price was slightly
less during 1997, only 2.8percent. The gap between the current and constant dollar prices
has widened through the 1990s (see, as prices for leather products have continued to
increase. Price increases have been particularly noticeable for leather footwear, which
averaged real increases of 6percent in 1996 and 3percent in 1997.
 Lack of warehousing support from the government
 International price fluctuation
 Lack of strong presence in the global fashion market
 Unawareness of international standards by many players

68
12. Opportunities and Threats in the Global Leather Industry,

Especially in North America
12.1 Opportunities
Large Domestic Market
India has a large and growing consuming class (with an annual income of USD 449 or
above), that constitutes the largest segment of the population today. This segment is
estimated to constitute nearly 90 million households by 2006-07, up from just 32.5
million households in 1997-98 – a CAGR of over 12 per cent. Coupled with relatively
lower penetration levels - penetration levels for footwear has been estimated to be about
60 per cent – this represents a large and growing market for leather goods.
Government Regulation & Support
The Government of India has announced various initiatives to make the leather industry
more competitive. Key policy initiatives include:
 De-licensing of integrated tanneries that convert raw hides and skins into
finished leather.
 Several leather goods have been de-reserved from the Small Scale sector.
 Free import of raw hides & skins, semi-finished and finished leather.
 Concessional duty on imported machinery and chemicals.
 Free export of raw hides & skins, semi-finished and finished leather and
leather products.
 Policies to facilitate modernization / up gradation: In June 2005 the

government initiated a USD 64 million ‘modernizing scheme’ called the
‘Integrated Leather Development Programme’, whereby all leather tanning
and product units will be eligible for modernization assistance. The
assistance will be to the extent of 30 per cent of project cost for SSI units
and 20 per cent for non-SSI units, subject to a ceiling of USD 110
thousand per unit.
69
 Setting up of leather parks: An outlay of USD 24.5 million for setting up

five leather parks — two in Chennai and one each in Nellore, Agra and
Kolkata. 12 The Council for Leather Exports has estimated that this
scheme will generate a total investment of USD 267 million in about three
years
 Establishment of ‘design centers’ at individual manufacturing units, to

facilitate improvement in design capabilities: Under this scheme, 25 per
cent of the project cost is provided to the units under the market access
initiative scheme of the Ministry of Commerce and Industry. Several
individual units have come forward to establish their own design centers
Licensing Policy
After the de-reservation of 11 items in the leather sector, which include semi-finished
hides and skins, leather shoes, leather washers and laces, moulded rubber soles and heels
for footwear, flexible polyurethane foam, polyurethane shoe soles, shoe-tacks & eyelets
and leather pickers and other leather accessories for textile industry, vide Notification No.
SO 603(E) dated 29 June, 2001; no Industrial License is required to manufacture most of
the items of the leather industry. The location of industrial projects will, however, be
subject to central or state environmental laws or regulations including local zoning and
land use laws and regulations.
Some of the items of the leather industry, viz. leather shoe uppers (closed), leather
sandals and chappals, leather garments, industrial leather gloves, leather suitcase and
travel goods, leather purses and hand bag, fancy leather goods and novelty items, watch
straps and leather straps of all types are still reserved for exclusive manufacture by the
small scale sector. Small scale sector units are defined in terms of investment in plant and
machinery. Non-small scale units can manufacture these items after obtaining industrial
license, which is granted subject to an export obligation of 50 per cent of the production
each year.
70
Future Prospects
 The world trade in leather products is growing in view of the increasing demand
for products made of leather.
 The domestic demand is also expected to rise with the growing GDP, and
consumption pattern particularly for products like footwear, leather goods.
 The developed countries have lost the competitiveness and they depend on
imports for meeting their requirements from developing countries like India.
 The leather sector in India is geared to meet the higher end consumer markets by
upgrading technology and machinery.
 The Government of India plays proactive role to enhance export of leather

products considering the industry's inherent strengths and prospects.
 Keeping in view the past performance and the current trend, the export
projections for the next five years were made. Accordingly, India's export is
expected to reach a level of USD 3.6 billion by 2006, envisaging 5percent share
of global trade.
12.2 Threats
Major part of the industry is unorganized
Limited scope for mobilizing funds through private placements and public issues (many
businesses are family-owned)
Difficulty in obtaining bank loans resulting in high cost of private borrowing
Stricter international standards
High competition from East European countries and other Asian countries
Lack of communication facilities and skills
The Leather and Allied Products Major Group has faced aggressive global competition
from offshore footwear producers for decades. This competition became so intense
71
during the late 1960s that cases against Asian producers from countries such as Taiwan
and Korea were brought before the Anti-Dumping Tribunal.
In 1977, again as a result of successful cases from the Canadian Anti-Dumping Tribunal,
the Footwear Industry lobbied and was granted a protective system of global quotas. In
1977, the quotas began to be phased in, and they lasted until the last one was removed at
the end of 1988. The peak year for domestic footwear shipments was 1981, when the
value of manufacturing shipments for the Footwear Industry reached USD 1.1 billion.
The quotas helped postpone the takeover of much of the Canadian footwear market by
foreign producers In 1990, for the first time, the value of imports of footwear surpassed
the value of manufacturing shipments and the proportion of the Canadian market supplied
by imports has been increasing ever since.
Conclusion
The second half of the 1990s has turned out to be a period of volatility for the Leather
and Allied Products Industries in general and the Footwear Industry in particular. With
stable demand for winter snow boots, and work and utility boots, the picture has
brightened for 2004. While market expansion occurred in 2004, Canadian leather
products manufacturers have not particularly benefited, because demand for imported
products have also expanded. Although the current low value of the Canadian dollar has
helped Canadian producers to increase exports, the costs of imported raw materials have
also increased prices (particularly for footwear) for Canadian consumers and dampened
domestic demand. With the Canadian dollar at even lower levels during 2000, it remains
to be seen whether demand for less expensive Canadian exports to other countries will
increase enough to overcome weak domestic demand.
• Majority of the industry is unorganized

• Limited scope for mobilizing funds through private placements and public issues
(many businesses are family-owned)
• Difficulty in obtaining bank loans resulting in high cost of private borrowing
• Stricter international standards
• High competition from East European countries and other Asian countries
• Lack of communication facilities and skills
72
12.3 MAJOR COMPETITORS

CHINA
China is the major competitor to Indian leather industry. China produces almost
40percent of the world leather products. Chinese leather goods like footwear, bags and
leather garments are the threats for the Indian exporters, because Chinese goods are of
good quality and also the cheapest in the market. In case of north America, both USA &
Canada, Chinese goods are very cheap in comparison with the other countries.
ITALY
Italy is the second largest exporter of the leather goods to USA & Canada.
BRAZIL
BRAZIL is also a major exporter of leather goods to USA & Canada.

73
RECOMMENDATIONS
 Indian leather goods manufacturers should be aware of the price of the

Chinese goods which is cheaper and have a better quality. Therefore
Indian industry needs to adopt the more scientific technology and
international design to decrease the cost and increase the demand.
 The yield from the Indian Slaughter houses should be maximized so as to

increase the overall productivity, for this purpose the commerce
department should introduce some special incentives for the slaughter
houses and educate the farmers on the advanced recovery techniques.
 The Ministry of Commerce should put social education programmes in

place to tell the farmers and public at large that the Indian Leather
Industry should be looked at as an ‘Economic activity’ rather than a
‘Social Stigma’
 Our small scale industries that form the major chunk of the Indian Leather
Industry need to be more focused on the export oriented production.
 Exporters should also be encouraged, especially small exporters, by

providing them easy loans, by simplifying the export procedures and
introducing SEZ for leather exports.
 The Govt. bodies like 'council for leather export' should setup warehouse
in foreign for encountering with unforeseen host nation problems.
 India should also consider introduction of transit warehousing and re-

exporting facilities for Leather Industry to give it quick boost.
74
 In the North American region, Canada should be seen as a potential

market for Indian Leather products.
CONCLUSION
Findings
India accounts for 17 % of the total leather imports of USA and Canada together in 2005.
The demand for Leather Imports in the whole North American region (USA and Canada)
has come down from close to USD 3500 million in 2001 to close to USD 2000 million by
2005. So the share of Indian exports has increase from close to 14percent in 2001 to
around 17percent by 2005.
So This Proves Our Hypothesis That:

“India is one of the major exporters of leather and leather goods to North-American
countries”.
Conclusion
So I accept the “Null Hypothesis” and conclude that India is one of the major
exporters of leather and leather goods to North-American countries.
Other Conclusions
1) The key markets for leather products exported from India are Germany,
UK, USA and Italy, which together consume about 49 per cent of Indian
exports.
2) In terms of product category, leather footwear, finished leather and leather

goods together account for over 75 per cent of exports.
3) India's export growth rate is 6.88percent during last five years.

75
4) U.S. imports of apparel increased in 2004, reflecting a continued trend by

retailers and apparel companies increasingly to source from lower-cost
offshore providers and the growth in the U.S. economy, which boosted
consumer confidence and disposable income.
5) China is the largest foreign' supplier of textiles, apparel, and footwear,

accounting for 20 percent of U.S. textile and apparel imports and 69
percent of U.S. footwear imports in 2004 by value. U.S. imports of textiles
and apparel from China rose significantly in 2004, particularly in articles
for which it became eligible for quota elimination in 2002.
6) Consumer spending on footwear rose in 2004 by 7 percent, and the

average price of U.S. footwear continued to fall as lower-price casual
shoes contributed to ongoing price deflation.
76
BIBLIOGRAPHY
 http://dir.indiamart.com
 http://www.indianleatherportal.com
 http://www.census.gov
 http://strategis.ic.gc.ca
 http://www.ita.doc.gov
 www.fas.usda.gov
 http://www.trade.gov
 http://www.indiainbusiness.nic.in
 http://www.ficci.com
 http://www.freeindia.org/at_a_glance/page3.htm
 http://.¥ww.tdctrade.com
 http://www.ibef.org
 http://civilaviation.nic.in
 http://www.indiacore.com
 http://www.tradeportalindia.com/
 http://www.whitehouse.gov
 http://www.leatherindia.org/
 http://www.intracen.org
77
Appendix
Questionnaire
SAMPLE QUESTIONNAIRE
Dear respondent,
In order to be able to conduct my research study on the Indian Leather Exports to North
America, I have prepared this questionnaire and would appreciate it, if you could share
your views.
Thank you for sparing your valuable time.

78
Demographic Details:
Name:
Address:
Age:
Occupation:
Q1. Are you employed with an export firm?
Yes [ ] No [ ]
Q2. Do you have an export business of your own?
Yes [ ] No [ ]
Q3. Do you deal in leather products?
Yes [ ] No [ ]
Q4. Rank the strengths of the Indian Leather Industry:
Raw material availability [ ]
Manpower [ ]
Low Labour cost [ ]
Non quota item [ ]
Q5. What kind of leather products do you deal in?
Footwear [ ]
79
garments [ ]
Handbags /Purses [ ]
Luggage/Flat products [ ]
Accessories [ ]
Others [ ]
If, you deal in Leather garments then please continue.
Q6. List the kind of leather garments do you export?
Q7. How many pieces do you manufacture per day?
20-30 [ ]
40-50 [ ]
50-60 [ ]
60 and above. [ ]
Q8. Do you have an inhouse tannery ?
Yes [ ] No [ ]
Q9. I believe that a leather garment is just worn as a symbol of status ?
Strongly agree [ ]
Agree [ ]
Neutral [ ]
Disagree [ ]
Strongly Disagree [ ]
Q10. Do you export leather garments to the North America?

80
Yes [ ] No [ ]
Q11. Briefly state the reasons for choosing North America?

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1

“A STUDY ON THE INDIAN LEATHER

JAGANNATH INTERNATIONAL MANAGEMENT

Mode of data collection

Analytical tools used

 Simple Percentages and growth rates have been used as a part of

 As a part of business tools, SWOT analysis has been adopted.

Limitations of the Research

every turn of the process.

INTRODUCTION TO THE TOPIC

1. About the Leather Industry

2. India – Snapshot of the Economy and Infrastructure…………………...….

3. Organizational Setup for Promoting Exports in India…………………..…….8

4. Trade Initiatives with North America……………………………………....…11

5. Current Status of Leather Exports from India………………….……..…..…16

6. USA – Country Profile……………………………………………………...…..25

7. Canada – Country Profile………………………………………………...……32

8. Supply Side Analysis……………………………………………………………37

9. Demand Side Analysis……………………………………………………….....47

10. Demand – Supply Gap………………………………………………………….51

11. Strengths and Weaknesses for Indian Leather Industry…………………….54

i. Types of Leather and Their

xx. Imports of Leather by the North America in the Recent

I. Important Hubs for Leather Production in

1. About the Leather Industry

i. Types of Leather and Their Application

Full-Grain leather Furniture and Foot-wear

1.1 Introduction to Leather Crafts in India

2. India – Snapshot of the Economy and Infrastructure

2.1 Economic Overview

ii. Economic Indicators of India

iii. Snapshot of Indian Infrastructure in the Recent Past

Railway Network (1998-99)

Air traffic at Major Airports

Source: http://civilaviation.nic.in/ ; http://www.indiacore.com

2.3 Indian Ports

3. Organizational Setup for Promoting Exports in India

3.1 INDIA TRADE PROMOTION ORGANISATION (ITPO)

3.2 Fairs in India

3.3 Fairs Abroad

Trade Development Activities

4. Trade Initiatives with North America

4.1 Trade with North American Free Trade Agreement (NAFTA)

India-U.S. Bilateral Trade

iv. India’s Export and Import to/from the US

Percentage Percentage Balance of

2000-2001 9305.12 10.83 3015.00 (-) 15.31 6290.12

Trend in India-U.S. Bilateral Trade

Prospects in Trade for the Region

India-U.S. Commercial Dialogue

States Commercial Dialogue on 23.3.2000 at New Delhi. Interactions under this

India - U.S. Trade Policy Forum

India-Canada Bilateral Trade

v. India’s Export and Import to/from Canada

Percentage Percentage Balance of

2000-2001 656.47 - 397.07 - 259.40

The major commodities of exports to Canada are Readymade Garments of Cotton

Annual Trade Policy Consultation Meeting

4.2 Measures Undertaken for Export Promotion to NAFTA

Dissemination of trade related information with respect to NAFTA partners is

5. Current Status of Leather Exports from India

5.1 About Council for Leather Exports (CLE)