Union Commerce and Industry Minister Piyush Goyal on Monday called upon the leather and footwear industry to target at least $15 billion in exports over the next five to six years, urging the sector to aim for three-fold growth by leveraging Free Trade Agreements (FTAs), diversifying export markets and strengthening quality, design, branding and sustainability.
Addressing the Council for Leather Exports National Export Excellence Awards 2024-25 in New Delhi, Goyal said the industry, which currently exports leather and footwear products worth around USD 4-4.5 billion, has the potential to achieve significant growth.
“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,” the Minister said, calling on the industry to set ambitious export targets.
Goyal said the government had created favourable conditions for the sector’s expansion, citing India’s skilled artisans, experienced workforce and globally competitive manufacturing capabilities.
Highlighting the role of recently concluded trade agreements, the Minister said India’s FTAs were opening access to 38 developed countries, creating substantial opportunities for the leather and footwear sector.
He announced that the India-UK Free Trade Agreement would come into force on July 15, while the legal scrutiny of the proposed India-European Union FTA is expected to be completed within the next 15-20 days.
Goyal said he would meet his European Union counterpart in Brussels on July 14 and 15 and travel with an Indian business delegation to Belgium, Spain and Finland to promote Indian products and strengthen commercial ties.
Urging exporters to diversify beyond traditional markets, the Minister noted that 77 per cent of India’s leather exports currently go to only 15 countries.
He said India already has FTAs with ASEAN countries, Japan and South Korea, in addition to newly concluded agreements, and is also negotiating trade agreements with Canada, the Gulf Cooperation Council, Mexico, Brazil, SACU nations, Israel, Eurasia, Central Asia, Russia, Chile and Ecuador.
Goyal encouraged exporters to tap smaller developed markets alongside major destinations such as the United States, the United Kingdom, Germany and Italy, particularly for premium designer leather products.
The Minister said the sector’s opportunities extend beyond footwear to products such as handbags, wallets, belts, jackets, apparel, saddles, sports equipment, watch straps, upholstery and luxury furnishings.
Describing the leather industry as one with “limitless potential”, Goyal said the Export Promotion Mission would provide assistance for overseas exhibitions, business delegations and warehousing facilities, including exploring models similar to Bharat Mart in Dubai for just-in-time delivery.
He urged the industry to focus on quality improvement, better standards, product finishing, innovative design, packaging, branding and scaling up production to achieve global competitiveness.
The Minister also called on the industry to strengthen testing infrastructure by using the best laboratories and certification facilities available, including those operated by the Bureau of Indian Standards (BIS), government institutions and universities.
Goyal said the leather sector, which currently provides employment to more than 40 lakh people, has the potential to generate jobs for one crore people as it expands.
He also asked the industry to take greater responsibility for improving India’s leather development centres by either adopting, restructuring or consolidating them to improve training and skill development.
The Minister urged industry stakeholders to collaborate with the National Institute of Design (NID) for product design, the Indian Institute of Packaging for packaging solutions, the Quality Council of India (QCI) for quality enhancement and testing, and the Bureau of Indian Standards (BIS) for strengthening product standards.
Calling for greater emphasis on sustainability, Goyal encouraged manufacturers to recycle waste, water and effluents, adopt renewable energy and produce environmentally sustainable leather goods to enhance their value in international markets.
He also advocated the adoption of robotics and artificial intelligence to improve precision manufacturing, demand forecasting and product design, saying technology would create more employment by expanding production and market access.
Quoting Prime Minister Narendra Modi, Goyal said, “We can become a global champion in leather and footwear exports by leveraging research and development and our traditional craftsmanship with modern technology.”
He described leather-making as a 7,000-year-old tradition with roots in the Indus Valley Civilisation and urged the industry to take pride in India’s artisans while positioning itself as a global supplier of high-quality products.
Congratulating the award winners, Goyal said exporters should see themselves as ambassadors of Brand India, noting that the sector employs a significant number of women, who account for nearly 40 per cent of its workforce, and urged companies to continue investing in employee welfare and workplace safety.
