The leather industry has been a cornerstone of the economy in Andhra Pradesh and Telangana, providing significant employment and contributing to exports. As the global and domestic markets evolve, this industry faces both opportunities and challenges. This article explores the current state of the leather industry in these two states, examines the impact of government policies, market trends, technological advancements, and identifies the key drivers that will shape its future. The analysis concludes with strategic recommendations for sustaining growth and enhancing the industry's competitiveness.