The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry.

India is the second largest global producer of footwear after China, accounting for 11.63% of global footwear production of 17.7 billion pairs.

India produces 2065 million pairs of different categories of footwear

(leather footwear – 909 million pairs

leather shoe uppers – 100 million pairs

non-leather footwear – 1056 million pairs).

India exports about 115 million pairs.

Thus, nearly 95% of its production goes to meet its own domestic demand.

The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry.

Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.

Brands sourced from India:

Footwear
Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double
H, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks &
Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, Stacy
Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston & Murphy, Docksteps
Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands

Besides, major brands are sourced from India, MNC brands are sold in India and Indian brands sold in India.

MNC Brands Sold in India	Indian Brands sold in India
Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams, Tod’s, Geox , Louis Vuitton	Red Tape, Bata, Liberty, Khadims, Lakhani, Metro, Action

US Retail giant Wal-Mart has also begun sourcing footwear from India.

The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector.

Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness.

The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located.

There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal.

Footwear Imports Global Trend:

Major Importing Countries of Footwear (Leather and Non-Leather) (Value in Million US$)

ountry	2008	2012
USA,PR,USVI	20104.41	24391.37
GERMANY	6529.34	7814.31
FRANCE	5714	6253.88
UK	5213	5979.28
JAPAN	4112.99	5512.95
ITALY	4810.26	4932.26
HONG KONG	4944.41	4569.34
RUSSIAN FED	2843.81	4000.68
NETHERLANDS	2570.87	3420.71
BELGIUM	2882.39	3039.48
SPAIN	2917.97	2641.67
CANADA	1748.05	2149.19
KOREA REP.	909.14	1679.8

Source: ITC, Geneva

Major Exporting Countries of Footwear (Leather and Non-Leather)

(Value in Mn $)

Country	2008	2012
CHINA	28115.97	44363.16
ITALY	10218.75	9827.58
VIET NAM	4769.87	7263.93
HONG KONG	5666.05	4847.81
BELGIUM	3605.19	4280.9
GERMANY	3611.91	4089.97
INDONESIA	0	3447.15
NETHERLANDS	2240.71	3011.48
SPAIN	2670.35	2633.56
FRANCE	2015.13	2529.21
PORTUGAL	1797.01	2069.58
INDIA	1534.32	2066.91
UK	1133.57	1579.5

Source: ITC, Geneva

Footwear – Global Scenario and India’s share

The global import of Footwear (both leather footwear as well as non-leather footwear) has increased from US$ 88.75 billion in 2008 to US$ 102.90 billion in 2012, growing at a CAGR of 3.76%. During 2012, the India’s share in the global import is 2.02%.

			(In Million US$)
Year	2008	2009	2010	2011	2012
Global import of Footwear	88755.57	78562.98	91990.51	104560.89	102900.66
India's export of Footwear & Uppers	1489.35	1534.32	1507.59	1758.67	2066.91
% Share of India	1.69%	1.95%	1.64%	1.68%	2.01%

Source: ITC, Geneva & DGCI &S, Kolkata

For comparison purpose, Global Footwear import includes leather & non-leather footwear. India’s Footwear includes – Leather, non-leather and leather uppers

Footwear – Indian Scenario

		(In Million US$)
Year	2009	2010	2011	2012	2013
Total Export	3404.57	3968.54	4873.53	5015.41	5908.82
Export of Footwear	1534.32	1507.59	1758.67	2066.91	2531.04
% Share	44.28%	44.32%	42.66%	41.21%	42.83%

Source : DGCI&S

Footwear is the engine of growth of the leather industry in India.

India’s export of footwear has increased from US$ 1507.59 million in 2009-10 to US$ 2531.04 million in 2013-14, growing at a CAGR of 13.82% in the last five years ending 2013-14.

Export of different categories of Footwear holds a major share of about 43% in India’s total leather & leather Products exports with an export value of US$ 2531.04 mn.

Major Markets:

A Statement showing India’s Export of Footwear (leather, non-leather and leather shoe uppers) to different countries and their Share :

				Value in US$	Mn
Country	2009-10	2010-11	2011-12	2012-13	2013-14	% Share
Germany	224.3	286.7	353.71	274.97	345	13.63%
UK	296.45	339.65	360.52	399.48	426.05	16.83%
Italy	210	219.72	219.61	163.66	183.7	7.26%
USA	123.6	143.02	183.02	227.63	312.21	12.34%
France	144.56	154.95	159.49	156.53	183.09	7.23%
Spain	95.94	112.05	113.85	101.52	116.84	4.62%
Netherlands	65.13	6.19	101.72	92.08	98.39	3.89%
Portugal	22.63	25.69	28.76	21.35	28.23	1.12%
UAE	39.45	41.82	62.14	75.5	106.24	4.20%
Denmark	17.01	16.55	24.3	32.88	24.46	0.97%
Australia	15.5	12.82	15.59	22.42	23.81	0.94%
Sweden	12.2	12.07	14.08	11.98	12.96	0.51%
Canada	9.3	10.56	15	14.86	20.27	0.80%
South Africa	9.87	11.33	14.75	13.49	20.28	0.80%
Japan	5.45	7.51	14.63	18.9	23.3	0.92%
Others	216.2	358.04	397.97	439.66	606.21	23.95%
Total	1507.59	1758.67	2079.14	2066.91	2531.04	100%

Source: DGCI& S

The major markets for Indian Footwear are UK with a share of 16.83%, Germany 13.63%, USA 12.34%, Italy 7.26%, France 7.23%, Spain 4.62%, Netherlands 3.89%, UAE 4.20% and Denmark 0.97%.

Nearly 78% of India’s export of footwear goes to European Countries and the USA with exports touching US$ 1660.41 mn to EU and US$ 312.21 mn to the USA.

Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear.

Future Trends: –

Keeping in view its past performance, current trends in global trade, the industry’s inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports from the current level of US$ 2.5 billion.

Indian footwear industry poised for growth

India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.