Index : 1,594 | 1Yr : +25.5% | 1Mo : +4.01%
Category : Sectoral Trackers
Min Investment : 2,531
India accounts for around 15 percent of the world's leather production and is the second largest producer of leather footwear and garments in the world. The sector stands at a total of USD 18 billion with the youngest workforce with majority of them under the age of 35. The Government of India has has permitted 100 percent FDI through the automatic route in this sector. It has also encouraged the sector by not imposing import duties on different kinds of leather and machinery subject to some export conditions.
The industry has evolved from small scale into a large one however, there are a large number of participants making the market highly fragmented. Also China is a competitor to Indian leather manufacturers in the export segment in terms of pricing so the government's stance on excise duties will play a crucial role in encouraging the industry to flourish. Invest in companies that have managed to create a niche for themselves and who are expanding their fortunes on the back of consistent profits.