Goyal sets $50 billion export target for leather and footwear industry by 2030

Leather export target: Commerce and Industry Minister Piyush Goyal has urged the leather and footwear industry to aim for $50 billion in exports by 2030.

During an interaction with industry representatives on Wednesday, Goyal assured that the ministry will address concerns related to quality control orders (QCOs) to ensure a smoother and more flexible certification process.

The Department for Promotion of Industry and Internal Trade (DPIIT) issued two QCOs in March for the leather and footwear sector, which will take effect in August. Manufacturers were given the opportunity to declare old stock before August 1 and sell the declared stock by June 30. Micro and small units, as well as imports of soles for footwear intended for export, are exempt from the order.

"The minister encouraged the industry to aim for a bigger vision and scale up the leather and footwear industry to the tune of $50 billion by 2030," the ministry stated.

The interaction involved over 120 stakeholders, including representatives from the Footwear Design and Development Institute (FDDI), Council of Leather Exports (CLE), and Central Leather Research Institute (CLRI).

Prominent industry leaders from companies such as Puma, Nike, Adidas, Reebok, Bata, Skechers, Liberty, Metro Shoes, Red Tape, and Reliance participated in the event.

India is the second-largest producer of footwear, contributing 10.7 per cent of global production. The sector accounts for around 2 per cent of India's GDP and provides employment to approximately 4.42 million people, mainly young and female workers.

India exports a variety of goods, including leather, saddlery and harnesses, leather apparel, gloves, bags, trunks, footwear, and non-leather items.

To support the industry, the government has launched the Indian Footwear and Leather Development Programme (IFLDP), which aims to develop infrastructure, address environmental concerns, facilitate investments, generate employment, and increase production.

Despite these efforts, exports of leather and its products declined by 3.64 per cent to $1.05 billion during April-June this fiscal year and contracted by about 10 per cent to $4.28 billion in 2023-24.

(With PTI inputs)