The study provides a comprehensive analysis of the catalysts of growth and challenges confronting the leather industry across several key economic parameters. The radical transformation in the leather industry has been driven by rising incomes, growing fashion awareness, supportive government policies, and easy access to raw materials. The study reveals that the biggest challenge is notably low fixed investment per factory in the leather industry relative to the overall manufacturing sector, indicating a slow pace of technological progress. The study further finds that the leather industry has lower labour productivity than the overall manufacturing sector, undermining the industry's competitiveness in the global market. Additionally, the anticipated inflows of foreign investment into the leather industry have not materialised, further limiting the industry’s potential to adopt cleaner technologies. The industry also faces environmental and marketing challenges, further hindering its robust growth. The study highlights the need for making substantial and strategic investments in advanced and sustainable technologies, which will further boost labour productivity in the leather industry. The study emphasises the need to diversify the international markets. It advocates for relocating all tanning units into clusters to make the finished leather process more cost-effective and environmentally friendly. By fostering innovation and adopting cleaner technologies, the industry can strengthen its position in the global landscape.