FTAs can propel India's leather exports to US$15 billion: Goyal

India's leather and footwear industry has been called upon to target exports of at least US$15 billion over the next five to six years, with the government highlighting newly concluded Free Trade Agreements (FTAs), market diversification and value addition as key drivers of future growth.

Addressing the Council for Leather Exports (CLE) National Export Excellence Awards 2024–25 in New Delhi, Union Commerce and Industry Minister Piyush Goyal said the sector, which currently exports goods worth approximately US$4–4.5 billion, has the potential to achieve a three-fold expansion by strengthening quality, design, branding, sustainability and production scale.

"If I were in your shoes—or in your leather shoes—I would aspire for nothing less than a threefold increase in exports over the next five to seven years," Goyal remarked, urging the industry to pursue ambitious growth targets.

The Minister said India has created favourable conditions for the sector to expand globally, citing the country's skilled workforce, experienced artisans, strong manufacturing base and growing international trade partnerships.

FTAs to Unlock New Export Opportunities

Goyal said India's recently concluded and ongoing FTAs are opening access to an expanding network of developed markets, creating significant opportunities for leather and footwear exporters.

He confirmed that the India–UK Free Trade Agreement will come into force on 15 July, while the legal review of the proposed India–European Union FTA is expected to be completed within the next 15 to 20 days. He also noted that negotiations are progressing with several other markets, including the Gulf Cooperation Council (GCC), Canada, Mexico, Brazil, the Southern African Customs Union (SACU), Israel and Eurasian countries.

According to the Minister, these agreements could provide Indian exporters preferential access to nearly 60 international markets in the coming years.

Call for Market Diversification

Highlighting India's heavy reliance on a limited number of export destinations, Goyal noted that nearly 77% of India's leather exports are shipped to just 15 countries. He urged exporters to diversify into smaller developed economies alongside traditional markets such as the United States, the United Kingdom, Germany and Italy.

He also encouraged Indian companies to develop globally recognized brands and expand beyond footwear into higher-value leather products, including handbags, wallets, belts, apparel, upholstery and premium lifestyle goods.

Focus on Design, Quality and Sustainability

The Minister stressed that the industry's future competitiveness will depend on investments in product design, packaging, testing infrastructure, branding and internationally recognised quality standards.

He called on manufacturers to collaborate with institutions such as 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 strengthen innovation, product development and certification.

Goyal also urged the industry to prioritize sustainable manufacturing by improving waste management, water recycling, effluent treatment and the adoption of renewable energy, noting that environmentally responsible production increasingly commands higher value in global markets.

Technology and Employment Growth

The Minister encouraged companies to embrace robotics and artificial intelligence to improve productivity, demand forecasting and product design, while emphasizing that technology can complement rather than replace employment.

Currently employing more than 4 million people, including a workforce in which women account for around 40%, the leather sector has the potential to expand employment to 10 million, he said.

Goyal further proposed greater industry participation in managing India's leather development centers to improve skill development and workforce training, describing stronger collaboration between government and industry as essential for sustaining long-term growth.

Concluding his address, the Minister said India's traditional craftsmanship, combined with research, innovation and modern technology, could position the country as a global leader in leather and footwear exports.

The awards ceremony recognized outstanding export performance by companies across the leather, footwear and leather products sector for the 2024–25 financial year.