The $5.5 billion leather industry is facing twin challenging times - shortages of both raw material and manpower. Since slaughtering animals for the leather business in the country is illegal, a lot of raw material (animal skins) has to be imported, and this is adding to costs. India imports animal skins from Brazil, Australia and Pakistan, among other countries.
However, the bigger issue threatening the industry is lack of adequate skill sets, said Tapan Nandi, regional chairman, Leather Council of India. According to him, raw material shortage can be managed, but the manpower shortage is a serious problem.
"The pay is such that after a few months most young people quit this industry. Skill development is also something they are deprived of," Nandi explained.
Incidentally, China is also facing similar problems. According to estimates, labour costs in the Chinese leather industry have increased from $0.39 per hour in 2003 to more than $1 per hour in recent years. This opens up an opportunity for India, but inadequate investment in capacity and infrastructure issues like power and labour cost are holding back the Indian leather industry.
However, the bigger issue threatening the industry is lack of adequate skill sets, said Tapan Nandi, regional chairman, Leather Council of India. According to him, raw material shortage can be managed, but the manpower shortage is a serious problem.
"The pay is such that after a few months most young people quit this industry. Skill development is also something they are deprived of," Nandi explained.
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"The West Bengal government had started training schools to train people, but somehow this has not picked up. We are trying our best to revive it again," added Nandi.
Incidentally, China is also facing similar problems. According to estimates, labour costs in the Chinese leather industry have increased from $0.39 per hour in 2003 to more than $1 per hour in recent years. This opens up an opportunity for India, but inadequate investment in capacity and infrastructure issues like power and labour cost are holding back the Indian leather industry.