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Upbeat and Downbeat Proportions of Indian Footwear Industry
Md. Taiyab Alam
Oct 2010
Oct 2010
Quality consciousness, research & development, diversity and abundance of raw material, comparative export-import potential and low cost are some of the distinct features of the Indian Footwear Industry. Being a labour intensive industry, its contribution to employment as well as Indian economy is significant. It has potential to provide employment across all sections of the economy with prospective of 3 lakh jobs in next 3 years. With a focused approach on growing the Industrial and Institutional business, the industry can offer globally renowned industrial footwear products. However, to maintain the growth trajectory, there is need of a purposeful review of programmes and policies to rejuvenate it.
It is one of the twelve focus manufacturing sectors in terms of competitiveness and untapped potential; top eight foreign exchange earner with gross Rs 10,000 crore and in the outsourced front has the share of 10 percent of global supply. It employs about 2.5 million people and has annual turn over of Rs. 25,000 crores. India is the world's second largest exporter and producer of footwear behind China with domestic market growth estimated to increase from 1.5 billion pairs in 2000 to an estimated 2.5 billion pairs in 2010.
The segment is walking briskly with rising brand and fashion awareness along with the improving living standard is expected to accelerate its growth. It is heading for a brand-driven market with rising income of people. The taste of consumers in terms of understanding towards casual, cleaner and younger styles also boost the retail market of it. Rising global traveling, increased media penetration, awareness about international trends and lifestyles also augment the industry.
Leather Pride
The segment is the pride of India's leather industry, and ranks second in the world; next to China. However, rise in labour cost and strengthening currency have posed serious problems for Chinese producers and exaggerated by EU anti-dumping duty, all favour the Indian products in the international market. The European Union and the USA are the major markets for Indian Footwear accounting for 79.95% and 9.22% share respectively in India's total footwear export. The other major exporting zones are Germany, UK, Italy, France, Spain, Netherlands, Portugal, UAE and Denmark. These countries together accounts for nearly 81.49% of India's total leather products export.
The Indian industry is gearing itself to be the front runner by modernising manufacturing and other infrastructure facilities and by using world-class raw materials, including polymers and polyurathanes and solvent-free adhesives. The Indian footwear market is set to experience the phenomenal growth in coming years due to retail revolution and fast changing retail landscape. The industry is concentrated largely in Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharashtra, Kanpur and Agra in U.P., Jalandhar in Punjab and Delhi.
Export Variety
The current trends in footwear production, trade and consumption are satisfactory. Almost 50 percent of the total domestic production is exported. About 75 percent of the total export of footwear components is from the Southern Region. Increased value of export of footwear from Rs 2957.5 crores in 2005 to Rs. 11,000 crores by 2012 is envisaged. As footwear retailing in India is largely men oriented, there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment. Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.
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