The Indian leather industry is staring at a tough year with a projected loss of 10 – 12% worth around Rs 12,000 crore due to a 50% US tariff. Yet Kanpur’s leather and footwear cluster is showing signs of a strong recovery.
The value of the leather and footwear sector in Kanpur has now risen to 16%. This marks a sharp turnaround at a time when exporters across the country are under pressure.
According to The Times of India speaking to reporters Mukhtar-ul Amin said the footwear industry is still on a long growth path. He said the sector could reach a turnover of $45 billion by 2030.
For the current financial year the industry size may touch around $20 billion.
He admitted that the US tariff caused a 10-12% revenue loss. But he said companies adjusted quickly by shifting focus to domestic buyers and smaller overseas markets.
“Earlier around 95% of footwear demand was met through imports and domestic production catered to only 15%. Now the situation has reversed.”
– Mukhtar-ul Amin, Chairman Leather Sector Skill Council & Chairman Super House Group
He said organised retail and rising demand for branded footwear are driving domestic sales.
Trade agreements with Russia and the UK are also giving exporters new hope.
Amin also pointed to a clear shift in consumer behaviour. India is moving closer to a European style shoe culture where people own more pairs.
Per capita footwear consumption in India was around 1.1 pairs three years ago. It has now increased to 2.1 pairs. He expects this number to rise to three pairs per person in the next few years.
He added that footwear in India is no longer just a necessity. It is fast becoming a fashion led industry.
The message from Kanpur is clear. Even with tariff shocks and global uncertainty the leather and footwear sector is finding ways to adapt and grow.
