Growing Foreign Interest in India’s Footwear Sector
Taiwanese and Vietnamese companies are showing strong interest in investing in India’s non‑leather footwear industry. The Council for Leather Exports (CLE) highlights the need for government support to streamline imports of machinery, components, and raw materials essential for setting up local manufacturing units 1.
Export Ambitions & Target Markets
India’s non‑leather footwear exports rose to USD 5.75 billion in 2024–25, with a projected increase to USD 7 billion by 2025–26—an 18% year‑on‑year growth 2. The U.S. remains the top export destination at USD 957 million (≈20%), followed by the UK (11%) and Germany 3. A trade deal with the U.S. could further reduce existing 18.5% duties, improving competitiveness 4.
Government Schemes & Policy Support
CLE chairman R.K. Jalan urges fast implementation of the focussed product scheme from India’s Union Budget, which promotes design capabilities, component-making, and machinery to enhance productivity and export potential in non‑leather footwear 5.
State-Level Investment: Tamil Nadu’s Advantage
Tamil Nadu is emerging as a key beneficiary of the “China+1” strategy. Major Taiwanese manufacturers—Feng Tay, Pou Chen, Hong Fu, Shoetown, and TKG Taekwang—have committed over ₹6,500 crore, generating more than 86,000 jobs in the state 6. Hong Fu plans a ₹1,500 crore non‑leather footwear factory in SIPCOT Park, Panapakkam, Tamil Nadu, expecting to employ ~20,000 workers by late 2025 7.
China+1 Strategy & Global Supply Chain Shift
Once dominated by China (72% of global footwear production in 2016), the industry is shifting. Vietnam’s share grew from 12% to 16% by 2021, and now India—especially Tamil Nadu—is poised to grow rapidly thanks to policy support and skilled labor 8.
Economic Impact & Employment Opportunities
Foreign investments are creating vast employment opportunities, particularly for women in rural areas. Hong Fu’s Tamil Nadu factory aims to fill 85% of its workforce with local female labor 9. Domestic MSMEs supplying components are also expected to benefit from technology transfers and higher standards 10.
Timeline at a Glance
- 2022: Tamil Nadu launches Footwear & Leather Products Policy.
- 2023–24: MoUs signed with Taiwanese firms Feng Tay, Pou Chen, Hong Fu, Shoetown.
- Late 2025: Hong Fu’s ₹1,500 cr plant at SIPCOT Park slated for production 11.
- 2024–2026: CLE aims to raise non‑leather footwear exports from USD 5.75 bn to USD 7 bn.
Trivia & Quiz Nuggets
- India’s non‑leather footwear exports hit USD 5.75 bn in 2024–25; target USD 7 bn for 2025–26.
- 20% of exports go to the U.S.; UK and Germany rank second and third.
- Tamil Nadu attracted ₹6,500 cr investment, creating 86,000 jobs.
- Hong Fu’s Rs 1,500 cr plant aims to employ mostly rural women.
- China once held 72% share in global footwear production (2016); India now emerging via “China+1.”
Conclusion
As Taiwanese and Vietnamese firms establish non‑leather footwear units in India—especially in Tamil Nadu—government facilitation will be key. With a strategic blend of export goals, policy backing, and inclusive job creation, India is rapidly transforming into a global manufacturing hub beyond leather.
Source: The Economic Times