India’s leather and footwear industry should aim to increase exports to at least USD 15 billion over the next five to six years by making better use of Free Trade Agreements (FTAs), expanding into new markets, and improving product quality, Union Commerce and Industry Minister Piyush Goyal said.
Speaking at the Council for Leather Exports National Export Excellence Awards 2024–25 in New Delhi, the Minister said the industry currently exports leather and footwear products worth around USD 4–4.5 billion. He said the sector has the capacity to achieve three times its current export level with the right strategy and investment.
Goyal also highlighted the growing opportunities created through India’s trade agreements with developed countries. He said the UK FTA will come into effect on July 15, while the legal review of the proposed EU FTA is expected to be completed within the next 15–20 days.
Key Highlights
- Union Minister Piyush Goyal urged the leather and footwear industry to target at least USD 15 billion in exports within five to six years.
- India’s leather and footwear exports currently stand at around USD 4–4.5 billion.
- The India-UK Free Trade Agreement will come into force on July 15, 2026.
- The legal review of the India-EU FTA is expected to be completed within the next 15–20 days.
- The Minister said the leather sector could increase employment from over 40 lakh people to 1 crore.
- Industry was encouraged to improve quality, design, branding, sustainability and skill development through partnerships with institutions such as NID, the Indian Institute of Packaging, QCI and BIS.
Read: India UK Trade Agreement 2026 to Take Effect on July 15, Expanding Exports and Services Trade
FTAs Expected to Open New Export Opportunities
The Minister said India’s recently concluded and proposed Free Trade Agreements are creating new opportunities for leather and footwear exporters. According to him, the country’s FTAs provide access to 38 developed countries, while existing agreements with ASEAN countries, Japan and South Korea expand market access further.
He also said India is negotiating trade agreements with Canada, the Gulf Cooperation Council, Mexico, Brazil and other regions, which could significantly increase the number of countries covered by India’s trade partnerships. He added that discussions are also underway with regions including SACU, Eurasia, Central Asia, Israel, Russia and Chile.
Goyal urged exporters to diversify beyond major markets such as the United States, the United Kingdom, Germany and Italy. He encouraged companies to explore smaller developed markets where demand for footwear, designer brands and premium leather products continues to grow.
Read: QCI FDDI Leather Footwear Sector: MoU to Boost Quality and Skill Development in India
Focus on Quality, Design and Industry Expansion
The Minister said future growth would depend on better product quality, testing, packaging, design, branding and production at a larger scale. He asked the industry to make greater use of advanced testing laboratories and adopt international quality standards for both domestic and export markets.
He also encouraged companies to strengthen India’s leather development centres by participating in their management or restructuring them to improve efficiency and training. He suggested partnerships with the National Institute of Design (NID), the Indian Institute of Packaging, the Quality Council of India (QCI) and the Bureau of Indian Standards (BIS) to improve product design, packaging, quality and certification.
Employment, Sustainability and Technology
Goyal said the leather industry currently provides employment to more than 40 lakh people and has the potential to increase that number to 1 crore as the sector expands.
He also asked manufacturers to focus on sustainable production by recycling waste, water and effluents and by increasing the use of renewable energy. According to the Minister, sustainably manufactured products can receive higher value in international markets.
The Minister said the industry should also make greater use of robotics and Artificial Intelligence to improve precision, demand forecasting, design and production efficiency. He noted that technology could support industry growth while creating additional employment opportunities as production expands.
Source: Ministry of Commerce & Industry
