Tamil Nadu: ₹271 crore cluster to boost leather and footwear sector
Tamil Nadu: Nidhi Keshwani, Joint Secretary, Ministry of Commerce and Industry, has announced that a new leather and accessories cluster will be developed in Panpakkam, Ranipet district, with an investment of ₹271 crore to further strengthen the growth of Tamil Nadu’s leather and footwear sector. The project aims to increase the production of leather and non-leather products in the state and meet the demand in the domestic and international markets.
On Monday, at an event held at a private hotel in Nungambakkam, reforms related to the leather and non-leather sector and streamlining industry operations were discussed. Industry representatives and government officials participated in the event. Joint Secretary Nidhi Keshwani stated that Tamil Nadu is already a leading state in the leather and footwear industry in the country, and its role will become even more important in the future.
She informed that industrial complexes for leather and accessories will be developed not only in Tamil Nadu, but also in other states such as Bihar, Madhya Pradesh, and Maharashtra. A total investment of approximately ₹891 crore is proposed for all these projects. This scheme aims to strengthen the industrial base in the leather sector and create new employment opportunities.
However, the project specifically implemented in Panapakkam, Tamil Nadu, will be implemented with an investment of ₹271 crore. According to officials, this cluster will be equipped with modern facilities, including units related to production, processing, and accessory manufacturing. This is expected to directly benefit small and medium enterprises.
Government officials stated that this initiative was launched keeping in mind the growing demand in the domestic market and global export opportunities. This cluster will play a crucial role in improving technology and increasing production capacity in the leather industry. This will not only increase production but also improve quality standards.
According to government data, approximately ₹2,000 crore has been invested in the leather and footwear sector so far. This indicates that the industry is continuously expanding and investors’ interest is maintained. Additionally, the sector has performed strongly in the export sector.
Exports of leather products have increased to approximately US$2.25 billion this year compared to last year. This growth indicates that demand for Indian leather products is steadily increasing in the international market. Experts believe that new policies and a cluster-based development model will further accelerate this sector.
Officials also clarified that the government’s focus is not only on large industries but also on strengthening small and medium-scale enterprises. The cluster-based model will reduce production costs and increase competitiveness. This is also likely to increase local employment opportunities.
Overall, this project is considered a significant step for Tamil Nadu’s industrial development, helping to give a new direction to the leather and footwear sector.
