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India’s leather and footwear exports to the United Kingdom are poised to nearly double, reaching $1 billion over the next three years, according to Union Commerce and Industry Minister Piyush Goyal. This significant growth trajectory is attributed to the India–UK Free Trade Agreement (FTA), which has granted Indian exporters duty-free access to the UK market.
Previously, Indian leather goods faced tariffs ranging from 2% to 8%, leather footwear attracted 4.5%, and non-leather footwear up to 11.9%. The removal of these duties has made Indian products more competitive compared to exports from countries like Bangladesh, Vietnam, and Cambodia, which had earlier enjoyed preferential access.
Goyal emphasized that the agreement is a milestone for the sector, which includes MSMEs, women entrepreneurs, and youth-led businesses, many of whom operate in manufacturing clusters across states like Uttar Pradesh, Tamil Nadu, Punjab, and Maharashtra. He also underlined the enhanced recognition for Indian Geographical Indications (GIs) such as Kolhapuri and Mojari footwear under the FTA, boosting India’s cultural and craft-based exports.
In 2024, India exported leather and footwear worth $494 million to the UK. With the new trade pact, this number is expected to double as Indian products become more accessible and competitively priced in the UK's $8.7 billion footwear market. To support this momentum, the government is implementing schemes like the Indian Footwear and Leather Development Programme (IFLDP) with a budget of ₹1,700 crore, aimed at enhancing infrastructure, technology, and capacity building. Additionally, a Focus Product Scheme will soon be rolled out to promote exports in targeted categories.
Goyal urged industry stakeholders to scale up manufacturing, embrace global design standards, and improve testing and compliance infrastructure to fully capitalize on the trade deal. The sector, which currently employs over 4.2 million people—40% of them women—recorded $5.7 billion in exports during FY25 and is projected to surpass $6.5 billion in FY26. Looking further ahead, the government has set an ambitious target of reaching $50 billion in exports by 2030, a move expected to generate around 10 million jobs nationwide.
With state- and cluster-level workshops and export-readiness programs being planned, the government aims to equip manufacturers and artisans to meet international quality and design benchmarks. The CETA not only enhances trade access but also establishes mutual recognition of standards and streamlined customs procedures, reducing export delays and administrative burdens. This ensures a smoother path for Indian products entering UK markets while protecting India’s traditional crafts and ensuring better value realization.
As India’s leather and footwear sector steps onto the global stage with renewed competitiveness and policy support, it represents a broader shift in India’s trade strategy—leveraging FTAs for sector-specific growth, deeper global integration, and domestic job creation. With improved market access, financial incentives, and strong policy backing, India is positioning itself as a trusted and high-quality sourcing hub for leather and footwear, capitalizing on both traditional strengths and modern manufacturing capabilities.
(Source: IANS)
