India's Footwear and Leather Exports Surge by 25% to $5.7 Billion in FY25
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Synopsis
India's leather and non-leather footwear exports surged by nearly 25% to $5.7 billion in FY25. The Council for Leather Exports predicts further growth, aiming to exceed $6.5 billion in FY26, driven by strong demand from global markets.
Key Takeaways
- India's leather and footwear exports reached $5.7 billion in FY25.
- The sector is projected to exceed $6.5 billion in FY26.
- Strong demand from developed and developing markets fuels growth.
- Export target surpassed by $1 billion for FY25.
- Chinese investors show interest in Indian manufacturing collaborations.
New Delhi, April 21 (NationPress) India's exports of leather and non-leather footwear have experienced a remarkable increase of nearly 25% in the 2024-25 financial year (FY25), amounting to $5.7 billion, according to a new report released on Monday.
The industry is projected to exceed the $6.5 billion benchmark in the current fiscal year (FY26), as stated by the Council for Leather Exports (CLE).
The CLE, representing footwear exporters, noted that robust demand from both developed and developing nations has fueled this exceptional growth.
R Selvam, the Executive Director of CLE, revealed that India surpassed its export target by $1 billion for 2024-25, a target established by the Department of Commerce.
"In 2024-25, we have exceeded the exports target by $1 billion set by the department of commerce, and following this trend, our exports will surpass $6.5 billion in 2025-26," Selvam stated.
Rajendra Kumar Jalan, the Chairman of CLE, emphasized that exports are thriving in key markets like the United States and the United Kingdom.
Despite a 10% tariff increase, exporters have been providing discounts to sustain their business relationships, and there have been no order cancellations.
Jalan also mentioned that conditions returned to normal by mid-April and proposed a ‘zero-for-zero’ duty plan to the Indian government during ongoing bilateral trade discussions with the US.
"From April 14-15, the situation is normal. We have suggested 'zero-for-zero' duty to the government in the proposed bilateral trade agreement with the US," he remarked.
The footwear sector is labor-intensive, employing approximately 42 lakh individuals. With a total turnover of $19 billion, the sector includes $5 billion in exports.
The industry maintains an optimistic outlook, predicting a total turnover of $39 billion by 2030, with $25 billion from domestic production and $13.7 billion in exports, according to the report.
Furthermore, there is increasing interest from Chinese investors eager to partner with Indian footwear manufacturers to establish production facilities in India, further enhancing the sector's growth potential, the report indicated.
