The Indian leather industry employs 2.5 million people with a large part (nearly 60-65%) of leather production concentrated in the Small/ Cottage Sector. There is a huge number of leather clothing and leather products manufacturer, leather jackets suppliers and other leather goods suppliers in India. Leather manufacturers, exporters and suppliers largely produce, distribute and export leather goods such as Leather Footwear (shoes, sandals), Footwear Components (Shoe Uppers, Soles, etc.), Leather Garments (jackets, skirts, pants, jeans), Leather Goods (Including Harness & Saddlery, Leather Gloves, etc.), Leather Accessories (belts, wallets) and Finished Leather. The annual export value of leather products, goods and accessories is poised to touch about 2 billion US dollars.

The leather industry is amongst the top 8 export earners for India. India is endowed with 10% of the world's raw material for leather and its leather export constitutes about 2% of the world trade. The most common sources of leather, skins and hides which manufacturers and exporters of leather products use are from cows, sheep, goats, pigs, calves, horses, kangaroos, ostriches, deer, elks, snakes, lizards, alligators, whales, sharks and seals. Cowhide is probably the most popular source of leather and is relatively strong. Crocodile, lizard, water buffalo, and goat are other durable skins. Sheep skin and especially lambskin, are relatively weak and will not last as long as the other leathers just mentioned, however, they are especially soft.

Of late, there has been increasing emphasis on the planned development of the leather sector, aimed at optimum utilisation of available raw materials for maximizing the returns, particularly from leather exports. In fact there is expected to be 100% FDI in the leather industry soon. Foreign companies wishing to set up units to manufacture tanning and leather footwear, including components in India would be allowed 100 per cent foreign direct investment (FDI) through automatic route without a licence.