The funds allotted to the scheme will be invested in updating technology and modernising existing tanneries and units for footwear components and leather products. It is hoped that this will result in a rise in productivity, balancing production capacity, a reduction in costs and superior products through design development.

The leather industry is an important element of the Indian economy and its products are amongst the top 10 export earners for the country accounting for $2.1 billion of the country’s total exports of $62 billion in 2003-2004. The leather sector employs approximately 2.5 million people of which about 30 per cent are women.