The Indian footwear industry has the potential to experience significant growth, expanding from its current valuation of USD 26 billion to reach USD 90 billion by 2030, according to a report by the Global Trade Research Initiative (GTRI).
To achieve this, the report outlines several measures, including banning shoe imports, offering fiscal incentives, establishing more design centers, and encouraging Taiwanese contract manufacturers to establish operations in India.
The report suggests that the growth in the market will be marked by a substantial increase in the demand for non-leather footwear, particularly sports shoes, running shoes, casual wear, and sneakers, which are expected to capture 75 per cent of the market share by 2030.
Additionally, there is anticipated growth in the production of leather shoes, transitioning from small-scale, cottage industries to larger corporate entities.
To support the local production of shoes, the report recommends stopping imports of finished shoes and promoting the use of domestic firms and multinational corporations.
It emphasises the need for the government to introduce a Production-Linked Incentive (PLI) scheme for key inputs required for premium shoe production, as India currently imports materials like outsole molds, glue, ethylene vinyl acetate (EVA) granules, and thermoplastic polyurethane (TPU) films.
The report underscores the importance of imposing a 35% customs duty on footwear imports priced below USD 3 per pair and setting a minimum import price of USD 5 per pair to safeguard the domestic industry. It suggests that such measures should primarily apply to non-leather shoes, which constitute a significant portion of India’s footwear imports.
Furthermore, the report encourages attracting Taiwanese contract manufacturers, dominant in the industry and responsible for major global brands like Nike, Adidas, and Puma. It proposes that states like Uttar Pradesh and Haryana, in addition to Tamil Nadu, could become major hubs for the footwear manufacturing sector.
In conclusion, the report stresses the need for a comprehensive strategy, including fiscal incentives, import restrictions, and support for local production, to propel the Indian footwear industry towards a substantial market size of USD 90 billion by 2030.
