India’s leather and footwear industry has been asked to target at least $15 billion in exports over the next five to six years, with the government urging the sector to use new free trade agreements, diversify markets and improve quality, design, branding and scale.
Union Commerce and Industry Minister Piyush Goyal made the appeal while addressing the Council for Leather Exports National Export Excellence Awards for 2024-25 in New Delhi.
According to a statement by the Ministry of Commerce and Industry, the sector currently exports goods worth around $4-4.5 billion.
Goyal said the industry should aim for a three-fold increase in exports and prepare to take advantage of new market access created through India’s free trade agreements.
“If I was in your shoes, or in your leather shoes, if I may say so, I would not aspire for anything less than a 3x outcome in the next five to seven years,” he said, adding that the industry could target $15 billion in exports.
The minister said enabling conditions had been created for the sector to achieve bigger outcomes, citing India’s product quality, experienced artisans, workers and industry leadership.
Goyal said India’s completed FTAs were opening access to 38 developed countries and creating new opportunities for the leather and footwear sector.
He said the UK FTA would come into force on 15 July.
Referring to the proposed EU FTA, he said both sides were working to complete the legal scrub within the next 15-20 days.
The minister said he would meet his EU counterpart on 14 and 15 July in Brussels and would travel with a delegation of businesspersons to Brussels, Spain and Finland to market Indian products, goods and services.
Goyal also called for diversification of export destinations, noting that 77% of India’s leather exports currently go to only 15 countries.
He said the industry should not focus only on large markets such as the USA, UK, Germany and Italy, but also look at smaller developed countries where footwear replacement demand and designer brands have a market.
According to the ministry, India already has FTAs with ASEAN countries, Japan and Korea.
The minister also referred to ongoing trade engagement with Canada, Gulf Cooperation Council countries, Mexico, Brazil and associated countries, SACU, Israel, Eurasia, Central Asia, Russia, Chile and Ecuador.
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Goyal said the sector’s potential extended beyond footwear to bags, wallets, horse saddles, jackets, clothing, apparel, upholstery, belts, watch straps and other leather products.
He said the Export Promotion Mission could support the industry in taking delegations abroad, organising exhibitions in major markets, improving warehousing and helping micro and small units participate in export promotion activities.
The minister urged the industry to plan regular exhibitions in developed countries and explore warehouse models similar to Bharat Mart in Dubai to support just-in-time delivery.
Goyal identified quality, standards, finishing, design, packaging and brand building as key areas for future growth.
He said the industry should use the best testing equipment and laboratories near production clusters, including government laboratories, university facilities and institutions linked to standards and certification.
The minister also said the sector, which currently employs more than 40 lakh people, could expand employment to 1 crore as it grows in size and scale.
He urged larger companies to take responsibility for leather development centres or campuses, saying the government was willing to hand over management of these centres to the industry for worker training.
Alternatively, he suggested that the industry could consider reducing the number of centres from 12 to three or four so that they could function more efficiently.
Goyal asked the sector to build partnerships with the National Institute of Design for design, the Indian Institute of Packaging for packaging, the Quality Council of India for improved quality and testing, and the Bureau of Indian Standards for product standards.
He said Indian products sold domestically and globally should meet the same quality standards.
The minister also asked the industry to focus on sustainability, including recycling of waste, water and effluents, so that Indian leather products could gain higher value in global markets.
He said artificial intelligence and robotics could help the industry in design, precision manufacturing and demand forecasting.
Goyal said products manufactured using renewable energy could command greater value in international markets through sustainability certification.
Quoting Prime Minister Narendra Modi, he said India could become a global champion in leather and footwear exports by combining research and development, traditional craftsmanship and modern technology.
The minister also said around 40% of the workforce in the leather sector is women and asked companies to reflect on how they support and care for their workers.
He said exporters should see themselves not only as exporters but as ambassadors of Brand India.
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