Union Minister Piyush Goyal Advocates for USD 50 Billion Vision for Leather and Footwear Industry by 2030

New Delhi: Union Minister of Commerce and Industry, Piyush Goyal, chaired a stakeholder interaction with the Leather and Footwear Industry yesterday, urging the sector to scale up to USD 50 billion by 2030. Emphasizing a bigger vision, the Minister called for the industry to showcase world-class products through large-scale exhibitions involving domestic and international brands. He also advocated for synergy within the industry to develop a Design Studio with state-of-the-art infrastructure to create globally competitive footwear designs.

Highlighting the importance of Quality Control Orders (QCOs) for ensuring product quality and promoting the “Make in India” brand, Goyal assured stakeholders that the government would streamline the QCO certification procedure to make it smooth and flexible. He noted that micro and small units under MSME would remain exempt from the QCOs, which aim to benefit the industry in the long run. The Department for Promotion of Industry and Internal Trade (DPIIT) has notified two QCOs for the leather and footwear sector, effective from August 1, 2024. Manufacturers can declare old stock before this date and sell it by June 30, 2025. Importantly, micro and small units and imports of soles for footwear exports are exempt from these QCOs.

The interaction saw the participation of over 120 stakeholders, including representatives from the Footwear Design and Development Institute (FDDI), Council of Leather Exports (CLE), Central Leather Research Institute (CLRI), National Productivity Council, Invest India, Bureau of Indian Standards, and associations like the Confederation of Indian Footwear Industries (CIFI) and Indian Footwear Component Manufacturers Association (IFCOMA). Prominent industry leaders from companies such as Puma, Nike, Adidas, Reebok, Bata, Skechers, Liberty, Metro Shoes, Red Tape, and Reliance also attended the meeting.

Discussions during the interaction covered the implementation of QCOs for the Leather & Footwear Sector from August 1, 2024, and other industry-related issues. Shri Goyal emphasized the dynamic nature of the Indian leather and footwear industry, which combines traditional craftsmanship with modern technology to drive economic growth. The sector is the second-largest producer of footwear globally, contributing 10.7% of world production, and employs approximately 4.42 million people, including a significant number of young individuals and women.

The leather and footwear industry contributes around 2% to India’s GDP, producing and exporting a diverse range of products, including leather, saddlery and harness, leather apparel, gloves, goods like bags and trunks, leather and non-leather footwear, and footwear components. The government’s Indian Footwear and Leather Development Programme (IFLDP) aims to develop infrastructure, address environmental concerns, facilitate investments, generate employment, and increase production in the sector.