Piyush Goyal Asks Footwear Industry To Aim $50 Bn Export By 2030
India is the world's second-largest manufacturer of footwear, and Goyal says the country has to become the world's largest manufacturer going ahead
Union Commerce Minister Piyush Goyal, speaking at the India International Footwear Fair (IIFF) 2024 on Thursday, asked the footwear manufacturers to aim USD 50 billion export target by 2030.
As per industry estimates, India's footwear exports are now at a mere USD 2 billion.
India is the world's second-largest manufacturer of footwear, and Goyal said the country has to become the world's largest manufacturer going ahead.
"Today you are creating more than 40 lakh jobs. My own sense is, this will go up to 1 crore jobs. You have the ability. We have the market. We have the world market to capture," he told the industry people. "It only needs a little bit of self-confidence, open mind to accept change. Change is always a little difficult initially."
Footwear sector almost contributes 2 per cent to GDP, and it employs 40 per cent women. Nearly 90-95 per cent of the manufacturers are MSMEs.
"My doors, the doors of my ministry, or any other wing of the government, led by Prime Minister Modi, is always there for you, is always there to support you, You have unique capabilities, whether it's traditional footwear, whether it's modern footwear, both leather or non-leather, whether it's open shoes, sandals, kolhapuri chappals, track shoes, or high-quality leather wear."
"I think India is poised to be a market leader in the world in each of these sectors."
Goyal requested the footwear markers to leverage the free trade agreements (FTAs) that India has already signed with various countries. "As we enter into more and more FTAs, please leverage our FTAs and work to make the Indian brands truly global."
During the footwear fair, the minister announced that he will ensure a footwear council is constituted.
Naushad, President, Confederation of Indian Footwear Industries said, "On behalf of footwear Industry we thank the minister for his announcement to constitute a domestic council for footwear. A lot of discussion has been done in past and it was a long due demand of industry. To grow the industry we need an ecosystem. Domestic Council will help us grow faster. This will be constituted soon."
The minister also apprised the footwear industry about India's toy industry, due to recent government interventions.
He said from shortage of toys, every Indian manufacturer is now twice the size what it was two years back. The toy exports have increased to nearly 150 per cent or 200 per cent.
"And our imports have reduced to probably half of what they were three years ago," Goyal said. "But our Indian consumers today will get quality toys, whether imported or Indian. We don't stop imports, but we stop substandard, low-quality imports."
As part of the Local for Vocal initiative, India is making a strong course correction in the toy manufacturing ecosystem. The country's massive toy demand was till recent years met mainly through imports, largely from neighbouring China. India's toy imports from China have reduced by an estimated 70 per cent over the recent years.
Policy interventions, such as raising import duty to discourage cheap imports, emphasis on quality and incentives have created an ambient atmosphere for the firms in this largely unorganised space.
Pushed by the self-reliant India initiative and renewed focus on enhancing domestic manufacturing post-Covid, a large number of small and big players have forayed into this area once perceived as not so lucrative proposition. (ANI)
