Changing Dimensions of Export of Leather and  Leather products in India � A Markov Chain Analysis

Dr. Saravana Pandian; Dr. M. Prabu; Dr.Varathan

Volume : III, Issue : II, February - 2013

Changing Dimensions of Export of Leather and Leather products in India � A Markov Chain Analysis

Dr. Saravana Pandian, Dr. M. Prabu, Dr. Varathan

Abstract :

Leather Industry in India, occupies a place of prominence in the Indian economy, in view of its massive potential for employment, growth and exports. The industry covers a vast spectrum of inputs, activities, skills and products i.e. livestock, hides and skins, tanning, leather products and exports. The tanning industry is concentrated in three states viz. Tamil Nadu, West Bengal and Uttar Pradesh. The other important states are Maharashtra, Andhra Pradesh and Punjab. The main products made out of leather are footwear, leather garments, leather goods such as hand bags, belts, walltial for employment, growth and exports. The industry covers a vast spectrum of inputs, activities, skills and products i.e. livestock, hides and skins, tanning, leather products and exports. The tanning industry is concentrated in three states viz. Tamil Nadu, West Bengal and Uttar Pradesh. The other important states are Maharashtra, Andhra Pradesh and Punjab. The main products made out of leather are footwear, leather garments, leather goods such as hand bags, belts, walured by fitting an exponential time trend of the form. The growth rate was the highest for finished leather (14.77 per cent) followed by leather goods (13.79 per cent), leather foot wear (11.35 per cent) and foot wear components (6.3 per cent); it was the lowest for leather garments (4.8 per cent). For finding out the changes in the structure of the leather export of India, Markov chain analysis was used. The results indicated that the stability in leather export of India was higher with Germany and Spain. The stability was meager with UK and other countries. The leather exports to USA, Italy, Hong Kong and France were completely unstable.