How NEEM Scheme Can Help Leather Industry

How NEEM Scheme Can Help Leather Industry

“Leather exports from India comprise of raw-hide skins, finished leather, leather goods, leather garments, leather footwear component, saddlery, and harness. India is the second-largest exporter of leather garments and the third-largest exporter of saddlery and harness in the world. According to Directorate General of Commercial Intelligence and Statistics (DGCIS), total leather goods exports from India stood at USD 3.05 billion during April-October 2018.” Source: National Skills Network 

When it comes to the leather industry of India picture has always been rosy. India is one of the best suppliers of leather globally. Our products are most sought after in the world, and we have good units doing some neat work. The Leather industry of India is still heavily depended upon the traditional way of operations. That means still we are doing things the old way by hiring more manpower which is underskilled for the job. This makes us somewhat less competitive in the international markets due to our less efficient operational model. 

Indian leather industry has one of the youngest workforces with around 55% of the workforce below 35 years of age. This industry, under the demographic dividend, might reach greater heights sooner than we realize. However, in order to optimally utilize this opportunity and to maximize the growth factor, India’s leather industry needs to see the face of several reforms.

As we can see from the quote above that we have one of the youngest workforce working in the leather industry with an average age of 35 years. However, these people are still using the age-old methods of processing leather which will make the entire Industry pretty much less competitive in the times to come. This would obviously result in the loss of business in the near future. This the nation just cannot afford. So what could be the answer to this challenge? Well Skill development through NEEM Scheme is the only way out. 

How the NEEM Scheme Can Help Indian Leather Industry? 

NEEM Scheme as everyone would be aware of is the OJT based skills development program initiated and run jointly by the Government of India and AICTE. It’s a very unique model and works on the principle of the apprenticeship model. Coming to the point directly, the Indian leather industry is running on the age-old manual labor method. Now infusing new skills into the old ways of working is a bit tough. For that, the companies have to bring in new youth talent which would learn the latest skills. Now that under normal circumstances would require huge investments on the part of leather companies and would also involve many HR and compliance formalities. This very fact uses to act as a detractor for leather companies. 

With NEEM Scheme OJT program leather companies need not worry about anything. Everything is taken care of by the NEEM Agent. Here a NEEM Agent like CLRSKILLS takes care of your hiring process along with all the HR and Compliance modalities. All one has to do is formulate a good skills development plan and implement it as per the NEEM guidelines. The best part here is that companies don’t have any obligation to offer employment to the NEEM Trainees. That is solely on the discretion of the company whether to hire the person or not. 

This creates a win-win situation for everyone. To know more please feel free to get in touch with us.

Scroll to Top