New Delhi: In a significant address at the India International Footwear Fair (IIFF) 2024, Union Commerce Minister Piyush Goyal has called upon footwear manufacturers to set their sights on achieving a $50 billion export target by the year 2030.
According to industry estimates, India's footwear exports currently stand at a modest $2 billion. Despite being the world's second-largest footwear manufacturer, Goyal emphasized the necessity for India to ascend to the position of the world's leading manufacturer in the future.
"You are currently generating over 40 lakh jobs, and I believe this number will rise to one crore jobs. You possess the capability, we have the market, and we have access to the global market. It merely requires a boost in self-confidence and an openness to embrace change. Change, however, can be challenging at first."
The footwear sector plays a crucial role in contributing approximately 2 percent to the GDP and employs 40 percent of women. Furthermore, nearly 90-95 percent of the manufacturers are micro, small, and medium-sized enterprises (MSMEs).
"I am confident that India is poised to emerge as a global market leader in each of these sectors," Goyal stated.
He further encouraged footwear manufacturers to make the most of the free trade agreements (FTAs) that India has already ratified with various nations. "As we continue to enter into more FTAs, I urge you to leverage these agreements and work towards elevating Indian brands to a global stage."
During the footwear fair, Minister Goyal announced his commitment to the establishment of a footwear council.
Naushad, the President of the Confederation of Indian Footwear Industries, expressed gratitude on behalf of the footwear industry for the minister's announcement regarding the formation of a domestic council for footwear. He acknowledged that there has been extensive discussion on this matter, which has been long overdue. The establishment of a domestic council is expected to accelerate the growth of the industry.
The minister also provided updates on the state of India's toy industry, highlighting recent government interventions.
He noted that from a shortage of toys, every Indian manufacturer has doubled in size over the past two years. Toy exports have seen a significant increase, reaching nearly 150 percent or 200 percent. Additionally, imports have been reduced to approximately half of their previous volume.
"Our Indian consumers can now expect high-quality toys, whether they are imported or locally produced. We do not halt imports, but we prioritize quality over quantity, ensuring that only substandard, low-quality imports are allowed," Goyal explained.
As a component of the Local for Vocal initiative, India is undergoing a significant transformation within the toy manufacturing ecosystem. Previously, the country's substantial demand for toys was predominantly satisfied through imports, with a significant portion coming from China. However, there has been a notable decline in India's toy imports from China, estimated at around 70 percent over the past few years.
This shift has been facilitated by policy measures, including the imposition of higher import duties to discourage the influx of low-cost imports, a focus on quality standards, and the provision of incentives. These interventions have fostered an environment conducive to the growth of businesses operating in this largely unorganized sector.
Motivated by the self-reliant India initiative and the renewed emphasis on bolstering domestic manufacturing in the aftermath of the COVID-19 pandemic, a diverse range of small and large enterprises have ventured into this previously undervalued market.
