At the inauguration of the 8th India International Footwear Fair in Delhi, Union Minister of Commerce & Industry, Government of India, Piyush Goyal outlined his vision for India’s leather and footwear industry.
Goyal declared that the sector, which currently employs around 40 lakh (4 million) people, has the potential to create jobs for 1 crore (10 million) workers in the coming years.
“We have the world market to capture. We need self-confidence and an open mind to accept change,”
Piyush Goyal, Union Minister, GOI
Emphasizing the industry’s capacity to expand its market share both domestically and internationally. This expansion, he believes, will significantly boost employment and economic growth within the country.
A critical component of Goyal’s strategy involves the implementation of Quality Control Orders (QCOs). These measures aim to prevent the influx of substandard, low-cost leather products into India, thereby protecting the domestic industry from unfair competition.
According to Goyal, QCOs will not only safeguard the Indian footwear market but also instill a spirit of quality among local manufacturers, positioning India as a world-class producer of high-quality footwear.
To ease the transition to these new standards, Goyal announced that the government will grant retailers a two-year period to sell off existing footwear stock following the application of the QCOs.
Additionally, fashion footwear manufacturers producing up to 72,000 pairs annually will be exempt from the QCOs.
This exemption is designed to encourage innovation and creativity within the fashion segment of the footwear industry, without compromising on quality.
Goyal expressed optimism about India’s potential to become the global leader in footwear manufacturing. Currently, India ranks as the second-largest manufacturer and the ninth-largest exporter of footwear worldwide.
With the right policies and industry practices, Goyal envisions India overtaking its competitors and achieving the status of the world’s largest footwear manufacturer.
Setting an ambitious target, Goyal aims for the industry to reach USD 50 billion in exports by 2030. He clarified that while QCOs will not apply to exports, exporters will still need to meet the quality requirements set by their international clients.
To further enhance the industry’s global footprint, Goyal urged Indian footwear manufacturers to capitalize on Free Trade Agreements (FTAs), particularly those with ASEAN and European countries.
By leveraging these agreements, Indian brands can gain access to new markets and establish a strong international presence.
Moreover, Goyal reassured the industry that micro and small units under the MSME sector will continue to be exempt from the QCOs. This exemption aims to support smaller businesses in the industry, enabling them to grow and contribute to the sector’s overall development.
