Amelot, Xavier <br/><br/>
Economic Dynamics and Territorial Restructuring: A Local Traditional Industry in South India Meeting the Challenges of Globalization 

 -  2010.<br/>							 
<br/><br/> 93 
<br/><br/> Like in other traditional manufacturing activities in India, the structure of the leather industry in Tamil Nadu is dominated by small-scale enterprises. This is a direct result of policies aimed at protecting employment and ensuring balanced regional development, within the broad framework of an import substitution strategy. However, the liberalisation of India's economy in the 1990s has exposed its manufacturers to the stringent demands of increasingly global markets, while enhancing competition among firms and territories within the country. Within this difficult context, this article examines the restructuring of the leather industry of the Palar Valley, which produces largely for export markets, with an emphasis on local capacities to adapt to the increasingly stringent demands of globalised markets for leather and footwear. This analysis underscores the importance of local partnerships and territorial embeddedness for achieving competitiveness in this century-old industry organised in clusters closely resembling industrial districts. Indeed, over the last few decades, local firms have developed strategies based on comparative local advantages, which include solid roots in the local territory and social capital based on strong social and ethnic ties. By analysing the articulation of various spatial and temporal processes, notably the impact of industrial policies, the main objective of this article is to identify the social and spatial transformations that are redefining the rural-urban relationship and bringing to the fore new challenges.