Federal official lauds Tamil Nadu’s leather sector progress

Nidhi Kesarwani, India’s Joint Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), on Monday interacted with StartupTN officials at the RANITEC Common Effluent Treatment Plant (CETP) in Ranipet. Highlighting India’s economic transformation from 2014 to 2026, she commended Tamil Nadu’s strong performance, noting its 11 per cent real GSDP growth in FY 2024–25 and the reduction of 2,521 regulatory compliances.

Tamil Nadu has emerged as a critical hub under the Make in India and Production Linked Incentive (PLI) initiatives. The State accounts for over 40 per cent of India's leather production and is successfully transitioning toward technology-driven, export-oriented manufacturing.

To strengthen the leather sector, the Government of India’s Rs 1,700-crore Indian Footwear and Leather Development Programme (IFLDP), which concluded on March 31, 2026, approved a Mega Leather, Footwear and Accessories Cluster at Panapakkam, Ranipet, spanning 290.58 acres with Rs 125 crore in Central assistance. Additionally, eight Common Effluent Treatment Plant (CETP) projects under the STEP sub-scheme, 89 modernized units under the IDLS sub-scheme, and infrastructure upgrades at the FDDI Chennai Campus were supported to boost global competitiveness.

The Joint Secretary emphasized that the state's leather sector is also supporting India’s Defence Corridor through specialized materials. With over 35 major defence companies active and 30 more in the pipeline, Tamil Nadu is building an integrated industrial ecosystem. Ms. Kesarwani also lauded the State's leading startup ecosystem and its progress in intellectual property filings. Furthermore, she outlined DPIIT’s forward-looking Reform Agenda 2026, which features the BHAVYA scheme to develop 100 investment-ready, plug-and-play industrial parks nationwide, a sector-focused BRAP+ framework comprising 60 targeted reforms, and the institutionalization of Regulatory Impact Assessments to ensure swift business clearances under 30 days.

Tamil Nadu emerged as the leading exporting State of leather and non-leather manufactures. During 2025-26, Tamil Nadu accounted for leather and leather products exports worth USD 1.59 billion, contributing nearly 37 per cent of India's total exports in the sector. As per industry estimates, in Tamil Nadu, women constitute over 40% of the labour force in the sector. The top foreign contract manufacturers of footwear maintain a strong presence in Chennai. This production and export performance reflects the robust manufacturing ecosystem, skilled workforce, and deep integration with global value chains.

As part of the programme in Chennai, interactions were held with leading industry stakeholders. The discussions focused on India's long-term vision for the leather sector. Industry projections indicate that the leather and footwear sector can achieve USD 50 billion production by 2030, which includes USD 36 billion in domestic consumption and USD 14 billion in exports. This sector is well-positioned to leverage emerging opportunities, with growing fashion consciousness, expanding retail networks, e-commerce growth, and enhanced global market access serving as key growth drivers.