R Selvam, Executive Director, Council for Leather Exports (CLE), points to the change: “In India, 80 per cent of the consumption is non-leather footwear. Yet exports in this segment remain low, only around USD 300 million.” This gap between strong domestic demand and weak export performance has become the starting point for new discussions. It shows that India understands the importance of non-leather footwear but has not yet established an export base.
Footwear Shift
India’s leather and footwear sector is already significant, valued at USD 24.6 billion, with a USD 19 billion domestic market and 4.42 million workers across major clusters such as Chennai, Kanpur, Kolkata, Delhi, Ambur, Ranipet, Mumbai and Agra. As the industry explores the significant potential in the non-leather segment, the entire value chain must adapt accordingly. States have started responding to this shift. Tamil Nadu took the lead with its 2022 footwear and leather goods policy. Selvam points out, “Eight out of the top ten major manufacturers signed MOUs for footwear, both leather and non-leather with the government of Tamil Nadu, and several have already begun operations.” Other states, including Madhya Pradesh, Uttar Pradesh, Andhra Pradesh and Maharashtra, introduced their own policies after seeing the potential for jobs and long-term manufacturing.
Aid from the government
The central government has also aligned its targets. Under the Focus Product Scheme the goal is to double the sector’s turnover to around USD 44 billion by 2030. Selvam indicated that the industry plans to build a stronger domestic market, expand exports and create additional jobs. To reach these goals, supply chain must become stronger. Selvam points out that a single shoe uses more than 30 components, and many of these are still imported. In non-leather footwear the dependence is even higher. He highlights, “80 to 90 per cent of the raw material is getting imported, including PU, EVA and synthetic inputs. Machinery is also imported.” This level of dependence raises costs and slows down delivery, affecting India’s ability to grow in non-leather exports.
Focus on design
Design and product development remain key areas for improvement. Selvam notes that India must enhance its design capabilities to meet global expectations. Only a few Indian exporters enjoy notable international visibility. Without stronger brands, India cannot command premium positioning. Export challenges also stem from external pressures: the US, India’s largest market, accounts for 20 per cent of footwear exports, but shipments may drop to USD 800 million if tariff issues persist. This underscores the need for diversified markets and greater competitiveness. Domestically, procedural hurdles increase the transaction costs for exporters. To address this, CLE has taken up the requests with the committee on regulatory reforms and hopes that the procedural relaxations will be done soon.
On the marketing front, CLE conducts global buyer–seller meets and reverse buyer-seller meets. It promotes Indian manufacturers in major markets of Europe and the USA, as well as potential markets, like Australia, Japan, Canada, the UAE, China, Taiwan, Vietnam, Malaysia, Russia, etc. These efforts are helping manufacturers understand global expectations and improve their reach.
With rising domestic consumption and policy support, India can reach the envisaged turnover of USD 48–50 billion by 2030. Selvam believes that by 2047, India could become the world’s footwear capital.