From the editor
After registering decline in exports for the first five months of this financial year (2024-25), exports from leather and footwear sector have registered positive growth in the last four months, with exports registering 2.55% growth during April – Dec. 2024, as per provisional available data. Exports from the sector have increased from USD 3706.95 million in Apr – Dec. 2023 to USD 3801.65 million Apr – Dec. 2024.
Also, exports have registered significant growth to major markets like USA, Germany, UK, Spain, Netherlands, UAE etc,. this year. Considering this positive trend in exports, we are expecting to cross the value of USD 5 billion during 2024-25, but there will be significant increase in exports during 2025-26 and thereafter.
As you all know, the entire world is looking at India as a major and reliable manufacturing hub and the footwear and leather industry is no exception to this. No doubt, the footwear and leather industry is now in a crucial time which presents immense business opportunities. We are in the cusp of major transformation and the next five years will see rapid growth of the industry. Considering these factors, we are hopeful of reaching the envisaged export value of USD 14 billion by 2029-30.
We need Joint Ventures, Technical Collaborations and investments from overseas manufacturers under Make in India programme. We need to develop a strong components and materials eco-system. I am sure that overseas collaborations will bring the required product diversification technologies which will help in greater penetration of the market. For instance, there is a huge scope for substantial growth of the athleisure footwear segment. Some of the major FDI sports shoe manufacturers have already established their units in India. I am happy to inform that our country has attracted new FDI investments in the athletic/athleisure shoes segment alone to the tune of Rs.11,900 crore in the last two years. The increasing interest shown by foreign companies to establish their production units in India is a very good sign as this will not only enhance our exports, but will also strengthen our supply chain.
In order to attract overseas investments in products sector and also to promote joint ventures in the components sector, the Council for Leather Exports has organized the visits of leather and footwear industry delegations to China, Taiwan, Vietnam and Russia. One such delegation is planned to USA as well.
As I stated before, the next five years will transform the manufacturing landscape of the leather and footwear industry in the country, with India emerging as a major sourcing hub. Let us all work together to achieve this.
With best wishes
Selvam
Executive Director
COUNCIL FOR LEATHER EXPORTS