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70-80% of footwear units in unorganized sector
Mar '08
Dr Ashwani Kumar
Dr Ashwani Kumar
India is the World's second largest producer of leather footwear; with an estimated production of over 900 million pairs per annum. Of all the leather products, footwear has registered the highest growth rate of 18% CAGR (Compound Annual Growth Rate) in 2005-06.

Exports in 2005-06 were valued at US$ 786.76 million, which accounts for 28% of total export of Leather products. In the last 5 years, India's overall footwear export has been growing at 12% per annum.

India has one of the highest potential for footwear consumption, given the rapid increase in the disposable income among the younger population.

However, presently, around 70-80% of footwear units are in unorganized sector and therefore, it is necessary to increase production capacities of footwear units in order to meet the increasing demand and to capture the available opportunities in global footwear market.

In order to increase the production capacities, development of Footwear Complexes/Parks was encouraged by the Central Government and during the 10th Plan, financial assistance towards establishment of a Footwear Complex and a Footwear Component Park at Chennai under the Plan Scheme, Indian Leather Development Programme was provided.

During the 10th Plan period training and marketing support were provided to primary workers and artisans thereby increasing employment opportunity in the sector.

This Information was given by the Minister of State for Industry, Dr. Ashwani Kumar, in a written reply in the Lok Sabha.

Press Information Bureau Government of India

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