India’s leather and footwear exports are projected to surge by over 12 per cent, reaching USD 5.3 billion in the current fiscal year, driven by robust international demand. This anticipated growth follows a USD 4.69 billion export figure in the 2023-24 financial year. Industry leaders cite strong order books and significant demand from key markets like the US and UK as primary growth catalysts.
Beyond established markets, Indian exporters are actively exploring opportunities in Africa, further diversifying their reach. The sector, a significant employer with approximately 4.2 million workers, currently boasts a total turnover of roughly USD 19 billion, including USD 5 billion in exports. Ambitious projections forecast a total turnover of USD 47 billion by 2030, encompassing USD 25 billion in domestic production and USD 13.7 billion in exports.
To facilitate this substantial growth, industry representatives have urged the government to extend the Production-Linked Incentive (PLI) scheme to the leather sector. This initiative is seen as crucial for achieving the 2030 target and potentially generating an additional 700,000 to 800,000 jobs.
In anticipation of the upcoming budget, industry bodies have appealed to the finance ministry for the removal of the current 20 per cent export duty on wet blue and crust leather, as well as the elimination of import duty on finished leather.
Industry experts emphasize the healthy growth rates observed in the US and EU markets for Indian exports. They advocate for increased scale within the domestic industry to further amplify shipments. Branding Indian leather goods in both global and domestic markets is also highlighted as a key strategy. Challenges facing the sector include the need for a skilled workforce and enhanced design development capabilities.
