India's footwear and leather exports to US won’t have any impact at the moment: CLE executive director

CHENNAI: Amid US President Donald Trump telling world business leaders to manufacture in the United States or face tariffs, the Council for Leather Exports (CLE), an export promotion council functioning under the aegis of the Union ministry of commerce and industry, has said export of non-leather footwear and leather products to the US would not be impacted.

The US is the largest market for India in this segment accounting for nearly 19.5% share ($835 million) out of the country's global non-leather footwear and leather exports at $4.3 billion in FY24.

“There is no impact at the moment. Also, it opens an opportunity for India in the non-leather footwear and leather products sector," CLE executive director R Selvam said.

He was briefing reporters in Chennai on Friday about the 38th edition of India international leather fair to be organised at the Chennai Trade Centre between Feb 1 and 3.

Pointing out that several manufacturers of international brands are shifting their base from China due to the US-China trade face-off, he said, "The natural opportunity for these brands is India. Taiwanese manufacturers are also shifting to India. So, we are getting the best opportunity in terms of production."

Further, the US is importing $34 billion worth of non-leather footwear and leather products every year from different parts of the world. However, India's share in exports to the US market in this segment is just about 1%.

"The US is not going to manufacture these products to meet its $34 billion demand. In that aspect, exports are going to be from India. Production is shifting to our country and manufacturing is also going to happen for exports. So, India will have double benefits," Selvam added.

The leather and footwear industry is targeting a turnover of $47.1 billion by 2029-30. Of this, the domestic turnover will contribute $33.4 billion while export will be to the tune of $13.7 billion. It is looking at doubling the turnover from $23.7 billion during 2023-24.

Asked about how this increase would happen, he said the footwear consumption in India would double over the next five years. "From the current two pairs, it will increase to four pairs. This would result in doubling the volume of production from 2.6 billion pairs annually," he said.

The industry will be able to generate an additional 2.5 million jobs in the next five years over and above the 4.4 million people already engaged in the industry, Selvam added.



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