Promising Indian Economy

India is the largest democracy in the world with a population of about 1.2 billion people. It is currently the second fastest growing economy. Over the past 5 years the average Gross Domestic Product (GDP) growth is almost 8.5%. This amounts to a per capita Gross Domestic Product of about $1018. Riding on this wave of growth economists have projected the GDP growth for the year 2011-12 to be a promising 9%. With such a high potential for growth in the Indian market, it is emerging as one of the most attractive options for investments for people all over the world.

The Indian automotive components industry which was earlier marked by low-volume and fragmentation is metamorphosing in to a highly competitive industry. In terms of total number of vehicles manufactured it ranks 7th all over the world. The investment in the auto component companies in India is expected to touch an all time high of $10.3 billion in 2010-2011.  It is estimated that production of vehicles will increase by as much as 300% from 2009 by 2020. It has already established itself as one of the major hub for car companies from all over the globe. This is complemented by some of the best auto parts supplier in Chennai, Pune, Gurgaon, etc. Established car manufacturing industries from around the globe purchase Indian auto components for fulfilling their needs.

Another sector that holds huge potential is the leather sector. In terms of livestock population, the country is ranked 1st in the world. The Indian market has provided supreme quality finished leather to consumers all over the world since long. If, we look at just tanning, the country can supply almost 10% of the total demand globally. The leather industry contributes a major chunk to the exports from the country. In the year 2009 – 2010, $ 625.54 million worth of finished leather was exported from India. The amount is 18.39% of the total worth of goods exported from the country.

India has a good domestic market too for leather goods (estimated to be almost INR16300 crore). The domestic market has a strong growth potential with experts pinning the Compound Annual Growth Rate (CAGR) at 20%. The footwear market itself is of INR 15000 and has shown great promise with a healthy growth of 8.8% in the past few years. The market share for footwear is dominated by demand for men’s footwear (about 50%), followed by the demand for women’s footwear (about 40%) and the rest for kid’s foot wear. This has promoted shoe style, fashion and design in India.

Indian Finished Leather Manufacturers and Exporters Association (IFLMEA) is the premiere body that is dedicated for carrying out various tasks for the growth of the Indian finished leather industry.