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

By

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.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTi

DECLARATIONii

CHAPTER 1: INTRODUCTION1

Research Aims and Objectives3

Significance of the Study4

Rationale of the Study5

Research Questions5

CHAPTER 2: LITERATURE REVIEW6

CHAPTER 3: METHODOLOGY10

Search Technique11

Literature Search12

Inclusion and Exclusion Criteria13

Search terms - key terms13

Additional Online searches14

Management14

Search rationale14

Critical Appraisal tool15

Appraisal limitations15

Reliability and validity15

Ethical Consideration16

Suggestions17

CHAPTER 4: DISCUSSION AND FINDINGS19

Findings21

CHAPTER 5: CONCLUSION23

REFERENCES24

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.

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 liberalize 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 etc. The special focus was given to the exports of the value added leather products (Badar, 2004).

In 1991, the exports of value ...