From Local Craft to Global Hub: India’s Ascent in Footwear Manufacturing Excellence

Introduction

India’s GDP growth decelerated to 5.4% in the second quarter of FY 2024-25, marking the slowest pace in seven quarters. This slowdown reflects challenges such as inflation, fluctuating consumer demand, and global uncertainties. Yet, amid these hurdles, some industries continue to act as stabilizing forces for the economy—the footwear sector being one of them.

The global footwear industry is poised for steady growth, with India emerging as a critical player. The country’s expanding domestic demand, export potential, and manufacturing capabilities make it a cornerstone of the global supply chain. As one of the largest employment-generating sectors, the footwear industry supports over 4.2 million jobs, significantly contributing to industrial development and economic stability.

Ranked as the second-largest footwear exporter globally, India’s prominence in international trade underscores the sector’s resilience amid broader economic challenges. This article delves into the current state of India’s footwear industry, its contributions, challenges, and opportunities, while examining its potential to become a global hub for footwear manufacturing.

India’s Footwear Market: Current Contribution and Growth Potential

Valued at USD 15.92 billion in 2023, the Indian footwear market is projected to grow at a compound annual growth rate (CAGR) of 12.39%, reaching nearly USD 36.05 billion by 2030. This impressive growth is fueled by rising disposable incomes, urbanization, and evolving consumer preferences. The increasing demand for branded, high-quality products is reshaping the domestic market, with middle-class buyers playing a pivotal role.

Beyond revenue generation, the footwear industry employs over 4.2 million people, making it one of India’s largest industrial employers. This sector not only supports livelihoods but also drives industrial growth through its extensive value chain, encompassing raw material suppliers, manufacturers, and exporters.

India’s strategic focus on enhancing export capabilities is bolstered by government initiatives aimed at improving infrastructure and ease of doing business. Consequently, the footwear sector is not just a vital contributor to India’s economy but also a cornerstone of its global trade ambitions.

Why India Is a Promising Destination for Footwear Manufacturing

India’s emergence as a global hub for footwear manufacturing is rooted in its competitive advantages, robust government support, and expanding export capabilities.

Competitive Advantages

India offers cost-efficient manufacturing due to competitive labor costs and an abundance of raw materials. The country’s leather industry is globally renowned for its high-quality materials, providing manufacturers with a significant edge in producing both leather and non-leather footwear for international markets.

To stay competitive, Indian manufacturers are increasingly investing in technology to modernize production processes. These advancements enhance efficiency, reduce costs, and ensure consistent quality—key factors for global brands seeking reliable sourcing partners.

Government Support

Government initiatives, such as ‘Make in India,’ have significantly bolstered the manufacturing ecosystem. Policies encouraging 100% Foreign Direct Investment (FDI) have attracted global players looking to capitalize on India’s strengths.

Recent investments exemplify this confidence. For instance, Taiwan’s Pou Chen Group has committed ₹2,302 crores to establish a footwear manufacturing facility in Tamil Nadu, expected to create 20,000 jobs over 12 years. Such investments underscore India’s potential to scale its manufacturing capabilities and meet global demand.

Export Growth

India’s footwear exports rose from USD 1.9 billion in FY21 to USD 2.5 billion in FY24, reflecting its growing influence in global markets. Major export destinations include the USA, UAE, and UK, with European countries like France gaining prominence. This growth highlights India’s ability to compete with established players like China and Vietnam, solidifying its reputation as a reliable sourcing destination.

Challenges and Opportunities in the Footwear Sector

Challenges

• High Inflation: Rising production costs impact profitability and reduce consumer spending, affecting domestic demand.
• Slowing Domestic Consumption: Economic pressures have curtailed purchasing power, leading to weaker local sales.
• Global Competition: India faces stiff competition from China and Vietnam, which dominate exports with advanced technologies and efficient supply chains.
• Modernization Needs: Many manufacturing facilities require upgrades to meet international quality and efficiency standards.

Opportunities

• Demand for Branded and Sustainable Products: Growing consumer interest in high-quality and eco-friendly footwear offers avenues for innovation and expansion.
• Government Initiatives: Programs like ‘Make in India’ and investments in infrastructure provide a strong foundation for scaling operations.
• Emerging Technologies: Automation, 3D printing, and material innovation are enabling faster, cost-effective production, enhancing global competitiveness.
• Increased Foreign Investments: Global brands are strengthening partnerships with Indian manufacturers, bringing in capital and expertise to boost capabilities.
• Export Growth Potential: Expanding market reach and increasing export volumes can solidify India’s position as a global manufacturing leader.

India’s Footwear Industry: Path to Becoming a Global Hub

India is steadily gaining recognition as a global hub for footwear manufacturing. According to R. Selvam, Executive Director of the Council for Leather Exports (CLE), many international brands are adopting an “India-only” policy for leather and footwear production. This shift is driven by India’s skilled workforce, improving ease of doing business, and robust infrastructure development.

Future Projections

• Exports are expected to double to USD 14 billion within the next 6–7 years.
• The sector is projected to create an additional 2 million jobs, further strengthening its economic impact.

Emerging Trends

Global brands like Nike, Columbia, and Crocs are leveraging India’s manufacturing capabilities. Additionally, Taiwanese companies specializing in non-leather footwear are investing in Tamil Nadu, enhancing India’s role in specialized footwear segments.

This growing trust in India’s manufacturing ecosystem marks a significant shift in the global landscape. By fostering innovation and maintaining quality standards, India is well-positioned to lead the global footwear industry.

Conclusion: Leveraging India’s Footwear Potential

India’s footwear industry is set to redefine global manufacturing through cost-efficient production, a skilled workforce, and strong government support. With exports projected to double and advancements in technology and infrastructure, the sector offers immense opportunities for global businesses.

Companies seeking reliable manufacturing partners should consider India’s leading footwear manufacturers. Among them, Choudhary International stands out for its proven expertise, robust infrastructure, and commitment to sustainability. Partnering with Choudhary International ensures access to high-quality, innovative products, positioning businesses for long-term success in the competitive global market.