India’s leather, non-leather footwear, and related product exports witnessed a robust surge in FY24, growing by 25% year-on-year and touching Rs 48,667 crore (US$ 5.7 billion). This performance exceeded the export target set by the commerce department by Rs 8,538 crore (US$ 1 billion), despite the challenges posed by global economic uncertainties.

According to the Council for Leather Exports (CLE), the uptick in demand across both developed and developing markets contributed significantly to the sector’s performance. Mr. R Selvam, Executive Director of CLE, stated that the trend is likely to continue into FY25, with exports expected to surpass Rs 55,497 crore (US$ 6.5 billion).

Key Export Destinations: US and UK Leading the Way

India’s major export destinations for footwear include the United States and the United Kingdom, both of which displayed resilient demand in FY24. Despite a 10% tariff hike, Indian exporters managed to maintain momentum by offering discounts, ensuring no cancellations of orders.

Rajendra Kumar Jalan, Chairperson of CLE, confirmed that order books remain strong for the coming quarters, indicating continued confidence among international buyers in Indian-made footwear.

Sector Overview: Strong Workforce and Growing Turnover

The Indian leather and footwear industry is not just growing in numbers—it’s also a significant contributor to employment and revenue. The industry currently:

• Employs approximately 4.2 million people

• Has a total turnover of Rs 1,62,222 crore (US$ 19 billion)

• Accounts for Rs 42,690 crore (US$ 5 billion) in exports

This demonstrates the critical role the sector plays in India's manufacturing and export economy.

Vision 2030: Aiming for Rs 3.32 Lakh Crore Turnover

The CLE’s projections reveal a strong long-term growth outlook. By 2030, the industry aims for a total turnover of Rs 3,32,982 crore (US$ 39 billion), comprising:

• Rs 2,13,450 crore (US$ 25 billion) in domestic production

• Rs 1,16,971 crore (US$ 13.7 billion) in export turnover

These targets underscore the scale and ambition of the Indian leather and footwear ecosystem.

Chinese Interest in India’s Footwear Industry

Adding another layer of opportunity, Chinese investors have shown interest in partnering with Indian footwear manufacturers. The goal is to establish manufacturing units in India, potentially benefiting from:

• Lower labour costs

• Rising global preference for India as a sourcing hub

• India’s strategic positioning in global trade routes

Such collaborations are expected to boost production capacity, job creation, and the technological capabilities of the Indian footwear industry.

Challenges Remain, But Confidence Prevails

Although the sector faces headwinds such as:

• Tariff increases in export markets

• Volatility in raw material prices

• Shifting global trade dynamics

Indian exporters have demonstrated resilience and adaptability. The willingness to absorb costs through discounts, combined with policy support and strong market demand, is helping the industry sustain its upward trajectory.

Support from the Commerce Department and CLE

The commerce department's role in setting realistic targets and providing institutional support has played a vital part in the sector's FY24 performance. CLE’s regular engagement with stakeholders and emphasis on market diversification are also critical contributors.

Efforts to promote Indian products in global exhibitions, provide market intelligence, and facilitate trade relationships are driving growth, even in the face of global economic pressures.

Conclusion: Footwear Sector Poised for a Strong FY25 and Beyond

In summary, India’s leather and footwear sector has not only met but surpassed expectations in FY24, setting the stage for stronger performance in FY25 and long-term success by 2030.

With resilient global demand, a strong export base, and emerging opportunities from international collaborations, the sector is on a firm path to becoming a global powerhouse.

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