The Indian footwear industry’s market size could more than triple to US $ 90 billion by 2030 if a slew of measures such as a ban on show purchases, fiscal incentives, more design centers, and Taiwanese contract producers setting up shop in the country are implemented, said a report by Global Trade Research Initiative (GTRI)
According to GTRI, the Indian footwear industry, which is now valued at US $ 26 billion, is expected to grow to US $ 90 billion by 2030.
“This growth will be driven by two main changes – a substantial rise in demand for non-leather footwear like sports shoes and sneakers in India, increasing from 25 per cent to 75 per cent of the overall market by 2030; and an increase in leather shoe production from small-scale, cottage industries to large corporates,” the report said.
Ajay Srivastava, GTRI Co-Founder said, “PLI-supported local manufacturing of critical inputs will aid in the local production of high-quality light and strong shoes. The government ought to think about excluding leather shoes from QCO (quality co-tool order) application”.
It also advised that the Government apply a 35 per cent customs tariff on footwear imports costing less than US $ 3 per pair, with a minimum export price of US $ 5 per pair, to preserve the indigenous sector. Around 25 per cent of shoe imports in India cost around US $ 3 per pair.
Furthermore, leather shoes have no quality difficulties and are not imported in huge quantities, as seen by the fact that they presently account for 81.7 per cent of India’s footwear exports, with the majority of exports going to quality-conscious regions such as the EU and US.
According to the survey, “QCO should mainly apply to non-leather shoes, which account for 77 per cent of India’s US $ 900 million in footwear imports. India lags behind in the non-leather shoe industry in terms of quality and depends on imported inputs.”
After China, India is the world’s second-largest footwear producer, accounting for 13 per cent of worldwide footwear output and 2.2 per cent of global exports. India is the world’s ninth-largest footwear exporter.
India has a lower presence in this area, accounting for only 19.3 per cent of total footwear exports. China, on the other hand, has a 79.7 per cent stake. Leather footwear accounts for 81.7 per cent of India’s footwear exports, demonstrating the country’s ability to produce high-quality leather shoes.