Indian Economy News

Union Minister of Commerce and Industry Mr. Piyush Goyal calls upon leather and footwear industry to target at least US$ 15 billion in exports in next five to six years

Union Minister of Commerce and Industry Mr. Piyush Goyal urged India’s leather and footwear industry to target at least Rs. 1.40 lakh crore (US$ 15 billion) in exports within the next five to six years by leveraging recently concluded Free Trade Agreements (FTAs), expanding into new markets and strengthening quality, design, branding, sustainability and production scale. Addressing the Council for Leather Exports National Export Excellence Awards 2024-25 in New Delhi, the statement noted that the sector, which currently exports around Rs. 37,340-42,007.50 crore (US$ 4-4.5 billion) worth of products has the potential to achieve a three-fold increase in exports. The statement further highlighted that India’s FTAs are opening access to 38 developed countries, with the India-UK FTA set to come into force on July 15, 2026, while discussions on the India-EU FTA are progressing. Additionally, the statement noted that India already has trade agreements with ASEAN countries, Japan, Korea, the UAE and Oman, while negotiations are underway with Canada, the Gulf Cooperation Council, Mexico, Brazil and several other economies.

The statement further emphasised that the leather industry already employs over 40 lakh people and has the potential to generate employment for one crore people through expansion and modernisation. It further elaborated that exporters should diversify beyond traditional markets, strengthen Brand India, invest in advanced testing infrastructure, adopt better packaging, design and quality standards, and utilise modern technologies such as robotics and Artificial Intelligence. Moreover, the statement outlined that the industry should promote sustainability by recycling waste, water and effluents, increasing renewable energy usage and improving environmental compliance to enhance the global value of Indian leather products. In continuation, the statement added that the Government remains committed to supporting the sector through the Export Promotion Mission, international exhibitions, overseas warehousing and skill development initiatives while encouraging exporters to strengthen Brand India in global markets. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.