India, gearing up to touch $7 billion leather exports by 2011, could overtake China as the world leader, with several leather parks being set up in the country.

"Though China dominates the world leather exports specially footwear accounting for 22 per cent of global leather exports, India can give a close competition to it in the face of constraints for expansion in China," Senior Industrial Development Officer UNIDO, Austria Frenec Schmel said at the India Leather Summit in New Delhi on Tuesday.

India currently holds sixth position in the global leather trade with exports standing at $2.7 billion.

India has comparative advantage in leather sector with China suffering from relocation of the footwear industry and increase in labour and logistics costs, he said.

Besides, China faces increasing depreciation in the industry and insufficient water and electricity supply.

"India can benefit from the limited growth and supply of footwear by China in the global market as 50 per cent of the Chinese production would be consumed in its domestic market. So if China jumps out, India can replace," Schmel said.

Though Indian leather industry is competitive on parameters like quality, services, infrastructure and institutional background, it has to improve its design and marketing strategies, he said.

Council for Leather Exports Executive Director K Elangovan attributed slow growth in Indian footwear exports to not tapping the world's largest market -- the US.

He said inadequate component supply and a very few large shoe manufacturing houses inhibit the footwear sector in India.

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