Addressing a press conference in Chennai on Monday, Kesarwani said that India was already the world’s second-largest producer and consumer of non-leather footwear. While the country’s exports were largely driven by leather footwear and leather goods, domestic production was dominated by the non-leather segment, which offered significant opportunities for further expansion.
She said that the industry had set a target of reaching USD 50 billion in production by 2030, with footwear exports projected to touch USD 7.6 billion. Achieving this target would require substantial investments in manufacturing capacity as well as the development of a stronger component ecosystem, she added.
According to Kesarwani, investments worth about Rs 15,000 crore have already been completed in the sector. Another Rs 15,000 crore worth of projects are in the pipeline, taking the overall investment opportunity beyond Rs 30,000 crore.
The centre, through Invest India and in coordination with state investment promotion agencies, was engaging with global investors to facilitate new projects. A key focus area was attracting Tier-2 and Tier-3 component manufacturers to India so that domestic capacities could be strengthened and supply chains deepened, she said. Foreign investors were also being encouraged to enter into joint ventures and partnerships with Indian manufacturers, enabling technology transfer and long-term capability development within the sector. She added.
She said that while Tamil Nadu and Uttar Pradesh continued to be the traditional centres of footwear manufacturing, the industry was witnessing expansion into newer locations. Investments were being explored in states such as Maharashtra, Madhya Pradesh and Bihar, she said. PM MITRA parks were expected to support the growth of the non-leather footwear segment because of their strong textile linkages, she added.
Referring to the ongoing infrastructure development, Petal Dhillon, Joint Secretary, Department of Commerce, said that a mega footwear and accessories cluster was being developed in the Ranipet district of Tamil Nadu at a project cost of Rs 271 crore. The Government of India was assisting with Rs 125 crore for the project which was expected to further strengthen the state’s manufacturing ecosystem, he added.
She noted that the industry continued to face challenges relating to the availability of critical raw materials, dependence on petrochemical-based inputs and rising logistics costs. The government had taken steps to address some of these concerns and facilitate smoother supply chains, she added.
The government had actively engaged with stakeholders during the Red Sea crisis to minimise disruptions to exports. An interministerial mechanism was put in place to monitor shipment-related issues, while efforts were made to support exporters affected by higher freight and insurance costs, Dhillon said.