Piyush Goyal Asks Leather Industry to Triple Exports to USD 15 Billion in Five Years

New Delhi: Union Minister for Commerce and Industry Piyush Goyal has called upon India’s leather and footwear industry to set an ambitious target of achieving at least USD 15 billion in exports over the next five to six years, urging the sector to leverage new Free Trade Agreements (FTAs), diversify export markets and strengthen quality, branding and sustainability.

Addressing the Council for Leather Exports National Export Excellence Awards 2024-25 in New Delhi, Goyal said the industry, which currently exports leather and footwear products worth around USD 4-4.5 billion, has the potential to register three-fold growth by capitalising on expanding global market access.

“If I was in your shoes, or in your leather shoes, I would not aspire for anything less than a 3x outcome in the next five to seven years,” the Minister remarked, encouraging the industry to think big and prepare for the opportunities emerging through India’s expanding network of trade agreements.

The minister announced that the India-UK Free Trade Agreement will come into force on July 15, while the legal review of the proposed India-European Union FTA is expected to be completed within the next 15 to 20 days. He said these agreements would provide Indian exporters preferential access to some of the world’s most developed consumer markets.

Goyal said India has already concluded FTAs with several countries, opening access to 38 developed nations, while agreements with ASEAN, Japan and South Korea further expand market opportunities. Negotiations are also progressing with Canada, the Gulf Cooperation Council (GCC), Mexico, Brazil and several other countries, significantly widening export prospects for Indian manufacturers.

Highlighting the need to reduce dependence on a limited number of export destinations, he noted that nearly 77 per cent of India’s leather exports currently go to just 15 countries. He urged exporters to explore smaller developed markets where consumers have strong purchasing power and demand for premium footwear, leather goods and designer brands.

The minister said the industry’s opportunities extend far beyond footwear to include handbags, wallets, belts, jackets, sports equipment, saddlery, upholstery and luxury leather products.

“The sky is the limit when it comes to the potential of your industry,” he said, emphasising that Indian craftsmanship combined with modern manufacturing could position the country as a global leader in leather products.

Goyal also called upon the sector to strengthen its focus on design, packaging, product quality, branding and sustainability, urging companies to collaborate with institutions such as the National Institute of Design (NID), Indian Institute of Packaging, Quality Council of India (QCI) and the Bureau of Indian Standards (BIS) to enhance competitiveness.

He suggested that leading exporters adopt and strengthen India’s leather development centres by investing in skill development and training infrastructure. According to the Minister, the Government is willing to hand over management of these centres to industry bodies to improve their efficiency and relevance.

The Minister also encouraged greater adoption of Artificial Intelligence (AI) and robotics, saying advanced technologies can improve precision manufacturing, demand forecasting, product design and operational efficiency without reducing employment opportunities. Instead, he said, higher productivity and expanded global demand would create more jobs across the value chain.

Emphasising sustainability as a competitive advantage, Goyal urged manufacturers to adopt renewable energy, recycle waste and wastewater, and implement environmentally responsible production practices to enhance the value of Indian leather products in international markets.

He said the leather and footwear sector currently provides employment to more than 40 lakh people, nearly 40 per cent of whom are women, and expressed confidence that the industry has the potential to create employment for one crore people as exports expand.

Calling exporters ambassadors of Brand India, Goyal said India’s centuries-old leather craftsmanship, combined with modern technology, research and innovation, can help the country emerge as a global leader in leather and footwear manufacturing while contributing significantly to employment generation, exports and the vision of a self-reliant India.