Foreign Direct Investment in Indian Leather Industry: Key Determinant and Changes Needed For Improvement

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTI

DECLARATIONII

CHAPTER 1: INTRODUCTION1

Research Aims and Objectives7

Significance of the Study7

Rationale of the Study8

Research Questions9

CHAPTER 2: LITERATURE REVIEW10

Economic Growth21

Domestic Assumptions22

Alternative Scenarios23

Economic Policy24

Monetary Policy and Outlook24

Recent Developments in Monetary Policy25

SWOT Analysis of Indian Leather Industry27

Strengths27

Weaknesses27

Opportunities28

Threats to the industry28

CHAPTER 3: METHODOLOGY29

Search Technique30

Literature Search31

Inclusion and Exclusion Criteria32

Search terms - key terms32

Additional Online searches33

Management33

Search rationale33

Critical Appraisal tool34

Appraisal limitations34

Reliability and validity34

Ethical Consideration35

Suggestions36

CHAPTER 4: DISCUSSION AND FINDINGS38

Findings40

CHAPTER 5: CONCLUSION46

REFERENCES48

CHAPTER 1: INTRODUCTION

The leather industry is one of the largest exporting and foreign exchange earning sectors in the Indian economy. Exports of leather have earned great foreign exchange for the country. As India is considered to be the second largest exporter in the world as against China, the industry is providing extensive employment opportunities to the large population. Moreover, the industry is providing business opportunities and thus economic growth to the country (Aykut, 2006).

India has become one of the largest exporter of the value added and finished leather products in the world, with its export earning now reaching US $ 2 billion each year. In the past, however, the Indian leather industry only transported the raw materials abroad for the production of leather goods. However, significant progress has now been made in adopting advanced techniques and technology, which has contributed to a growth in the industry (Andersonhsiao, 2003, Pp. 589).

There are different reasons for the growth of leather industry in India. Due to the many hazards with the manufacturing of leather material, production is usually restricted in the developed countries such as the United Kingdom and the United States. Therefore, only developing or under developed countries are usually involved in the production of the leather items. There are many diseases that arise due to the direct exposure in the process of tanning. Those who work in the leather industry are in great danger in terms of their health. The usage of dirty water that produces contaminated materials within the feedlots of the factory, tanneries and the slaughterhouses.

The enhanced performance of the Indian leather industry is mainly due to the changes made in the government policies in 1974. The Indian government changed the economic policies and liberalizes the trade that permitted the producers to export their products in the international market. The changes in the trading policies have transformed the Indian leather industry and enhanced the trading volume of this sector. The country is now exporting different kinds of leather products that include hides, skins, shoes, leather shoe uppers, Non leather shoes, leather garments, industrial gloves, saddlery ...