Indian Leather Industry Aims for Growth

“"India currently manufactures around 2.6 billion pairs of footwear annually, of which nearly 90% is consumed domestically. Demand is expected to rise to 6 billion pairs by 2030, requiring an additional capacity of around 4 billion pairs."”

“Implementation of this scheme is important to achieve a turnover of $50 billion by 2030 ($36 billion domestic and $14 billion exports) from present $24.6 billion achieved in 2024-25 ($19 billion domestic and $5.6 billion exports)”

“The India-EU FTA will be a game changer for the industry. The EU contributes nearly 43 per cent of the export segment basket. The FTA will open up the entire region and will help in exploring new markets. This will be a game changer and help achieve the $14 billion export target by 2030. We need to have this kind of FTAs with the US. If this happens, it would be a double engine growth for the leather industry and all the labour-intensive industries”

“The last six months have been very hard on the leather industry, especially with the US tariffs from August that affected the industry badly. However, the resilience and the support from the government helped the industry to manage over the crisis so far. The government has been hand-holding and directing the industry to non-US destinations and organised trips to the UK, Russia, European countries and the Far East”

“The industry players should research on the fabrics in demand in the EU and manufacture fabrics as per their standards. Southern Gujarat Chamber of Commerce and Industry (SGCCI) should take the initiative to send a delegation of textile industry players from Surat to the EU, conduct study visits, interact with the Chambers of Commerce of different countries in the EU, and also invite a delegation of the Chamber of Commerce of the EU. By doing this groundwork, the textile industry of Surat will definitely benefit.”

“Generally, international brands and multinational companies of the EU were outsourcing to other countries except India. With this FTA, they will now keep an eye on the textile apparel and fabrics of India, thinking of it as a potential market.”

“Due to the 12 per cent FTA, Indian textiles and clothing exported to the EU were much more expensive, so buyers in the EU would get it from Bangladesh, Vietnam, China, and Pakistan. Due to the volatile situation in Bangladesh and Pakistan, buyers in the EU are not willing to enter into long-term business deals with either country. China has shifted its focus from textiles to electronic products. EU buyers have focused on a better alternative, and through FTA, India will get major benefits.”

“Surat is a hub of Man-Made Fibre (MMF) and accounts for 40 per cent of the country’s production. In the MMF sector, Surat accounts for the production of 50 per cent of polyester, 80 percent of nylon, and 90 per cent of viscose in the country. In EU countries, MMF is in huge demand. The annual turnover of synthetic yarn exported from Surat to the EU is around Rs 1,000 crore.”

“After the FTA is implemented, textile fabrics exported to the EU from India will be cheaper by 10-15 per cent. After the implementation of the FTA, exports of textile fabrics from India to EU countries will increase to 5 billion USD from the current 3 billion USD. This will benefit different textile segments in Surat, like the powerloom sector, processing units, the garment sector, and it will also play a turning point in the manufacturing, employment, and new investments in the textile industry of Surat.”

“From Surat textile markets, around 10 per cent of fabrics are exported across the globe; out of which around 5 per cent are exported to the EU. Due to the rise in the US tariffs, the textile industry had been hit, and now, with the FTA with the EU, such a loss in the business would be overcome.”