Can India Emerge as a Globally Trusted Hub for Footwear and Leather Manufacturing?
Click to start listening
Synopsis
In a recent consultation, Union Minister Piyush Goyal highlighted India's potential to be a leading manufacturing hub for footwear and leather. With significant export growth and recent reforms, can India truly achieve the status of a globally trusted supplier in this industry?
Key Takeaways
- India's leather and footwear exports have risen by 25% in FY25.
- The sector is projected to exceed $6.5 billion in FY26.
- Approximately 42 lakh jobs are provided by the footwear industry.
- Recent reforms aim to simplify export procedures.
- Quality improvements are a priority for global competitiveness.
New Delhi, May 27 (NationPress) The Union Minister of Commerce and Industry, Piyush Goyal, convened a stakeholder consultation on Tuesday with key figures from the footwear and leather sector.
During this meeting, the minister emphasized the need for bolstering quality standards and enhancing India’s position on the global stage.
“We placed a strong focus on improving testing facilities, fostering innovation, and aligning with international norms to establish India as a quality-oriented and globally trusted manufacturing hub,” Goyal shared via a post on the X social media platform.
India’s exports of both leather and non-leather footwear have surged by nearly 25% in the 2024-25 financial year (FY25), reaching a total of $5.7 billion.
The industry is projected to exceed the $6.5 billion threshold in the current fiscal year (FY26), according to data from the Council for Leather Exports (CLE). The CLE, representing footwear exporters, indicated that robust demand from both developed and developing nations is driving this remarkable growth.
This labour-intensive sector employs around 42 lakh individuals and boasts an overall turnover of $19 billion, with exports contributing $5 billion.
On Monday, the Directorate General of Foreign Trade (DGFT) announced the removal of critical procedural barriers related to the export of value-added leather goods. This initiative aims to alleviate compliance burdens and enhance the ease of doing business for exporters, as stated by the Ministry of Commerce.
Restrictions on port exports have been lifted, allowing for the shipment of Finished Leather, Wet Blue Leather, and EI Tanned Leather from any port or Inland Container Depot (ICD).
Previously, these exports were confined to specific approved ports. Furthermore, the mandatory testing and certification by the Central Leather Research Institute (CLRI) for the export of Finished Leather, Wet Blue Leather, Crust Leather, and EI Tanned Leather has been eliminated.
These reforms are designed to bolster India’s competitiveness in the global leather value chain while ensuring transparency and maintaining quality standards in accordance with general customs regulations.
Point of View
It is evident that India stands at a crucial juncture in its quest to become a major player in the global leather market. The recent reforms and focus on quality standards indicate a strong commitment to enhancing competitiveness while ensuring transparency and sustainability. This approach aligns with the nation's broader economic goals, making it an opportune time for growth.
NationPress
09/06/2025
Frequently Asked Questions
What recent reforms have been implemented for the leather industry?
The Directorate General of Foreign Trade (DGFT) has lifted key procedural restrictions on the export of value-added leather products, including Finished Leather and Wet Blue Leather, allowing exports from any port.
How much have India's leather and footwear exports increased?
Exports have increased by nearly 25% in FY25, reaching approximately $5.7 billion, with expectations to surpass $6.5 billion in FY26.
What is the employment impact of the footwear industry?
The footwear industry is labor-intensive, providing jobs for around 42 lakh individuals.
How does the government plan to enhance quality standards in the leather sector?
The government is focusing on upgrading testing infrastructure and promoting innovation while aligning with international benchmarks.
What is the significance of the Council for Leather Exports (CLE)?
The CLE represents footwear exporters and plays a crucial role in highlighting demand trends and supporting industry growth.
