UNIT 11 LEATHER PRODUCT

Prepared by Ansalna
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1..  *INTRODUCTION*

*.       Leather products are important item of  world trade.
*.         The major producers of leather products are Italy, Korea, China,and India.
*.      India is one of the important exporters of leather products.
*.      India has competitive advantage inthe export of leather productd.

2.  *TRADE OF LEATHER EXPORTS FROM INDIA*

:    The export of leather items is one of the important upcoming area of india total export. It accounts for about 26% of india total export for the year 2005-06. The Indian leather industry has been able to keep up the tempo of growth of  leather exports in spite of global recession, particulry in established market like Europe and USA.

2.1. *Commodity Composition*
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1). *Finished Leather*
2). *Footwear of leather*
3). *Leather goods*
4).  *Leather fooywear component*
5). *Leather garments*

2.2  *Markets*
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          The majour market for leather and leather manufactures export.
         The majour markets are Germany followed by UK, USA,Italy,and Hong Kong .
        They accounted for 58% of india total export of leather and leather manufactures.

3.  *WORLD TRADE*
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     There are at least two reasons for the markedly diffrend trends.
 
FIRST  The majour markets for finished products comtinue to be in industrialised countries thought there has been a rapid growth of production capacity in developed footwear.
SECONDLY  Many of the newer producers of finished products particulrly footwear have no domestic source of raw material.

            USA is the leading importer of virtualy all leather products in the world .
             Other majour importers of leather products includ Hong Kong,Germany,France,Jappan,Uk,Russia,Netherlands,Italy and Belgium.

Importance of Leather products
 
a)  There has been steep rise in the wage level in these countries.
b)  strict pollution control laws in these countries have countributed to marketing leather manufatures a high cost operation.
c)    Efforts to replce labour intensive operations by automation in making certain leatherproducts have not succed
d)   imported articls of equilent quality are available at less than half price of the local product