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Positive outlook for footwear & leather industry - CII Report

Dec '06
The outlook for the Footwear & Leather Industry in India is positive. With a marginal share of 2.44 percent in global trade worth US$ 97.606 billion in Footwear & Leather Industry, India has a significant potential for higher share, highlighted the Report on the Sectoral Analysis of the Footwear & Leather Industry in India titled "The Indian Footwear & Leather Industry: Key Challenges & Opportunities" released by Confederation Indian Industry (CII) Northern Region.

Mr Adesh Gupta, Chairman, CII Northern Region, while releasing the Report, urged Government to treat Footwear and Leather industry at par with Apparel industry to generate large scale employment and to achieve an estimated target of 12 bn $ (7bn $ export + 5 bn $ domestic) trade by the year 2012.

The Report highlights that India is a noticeable player in the world in the Footwear & Leather market with its exports growing at 8 percent CAGR.

Multinational companies are looking at India; some of them have already entered India in different ways. The Government is keen to support industry modernisation and help double exports by 2010.

However, a heavy dose of investment in manufacturing segment and training facilities is required to build up a large number of skilled workers and artisans.

Further, to sustain the growth trajectory in the sector, the Report recommends a purposeful review of policies to rejuvenate Indian Footwear & Leather Industry.

The specificrecommendations include; recognising Footwear industry at par with the Apparel Industry, substantial levels of investment in terms of modern machines and rationalisation of taxes on machinery and inputs, encouraging investment opportunities including FDI, removal of excise on all those component items that are covered under DFIS (allowing duty free imports of 3 percent of FOB to exporters) policy approach to help build strong country brands in footwear, strengthening of infrastructure for skilled manpower, design and testing needs and to address raw material issues.

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Confederation of Indian Industry

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