Scale up with sustainability: Goyal’s mantra for India's leather hubs

Union Commerce and Industry Minister Piyush Goyal urged the domestic leather and footwear industry to embrace massive scaling of production while maintaining a ‘zero-pollution’ footprint to cement India's position as a high-quality global supplier.

Speaking recently at the National Export Excellence Awards 2023-24, organised by the Council for Leather Exports (CLE), Goyal emphasised that the industry must transition from being a low-cost provider to a symbol of Brand India through rigorous quality standards and sustainable practices.

The Minister’s call comes at a critical juncture for India's socio-economic landscape. The leather and footwear sector is one of the country's largest employers, supporting over 4.4 million people, a significant portion of whom are women and individuals from socio-economically marginalised communities.

In hubs like Agra, Kanpur, and Ambur, the industry is the primary breadwinner for lakhs of MSME-dependent families. By urging economies of scale, the government aims to transform these traditional clusters into modern manufacturing powerhouses that can compete with the likes of Vietnam and China.

Sustainability Challenge

Addressing the environmental concerns often associated with tanning and leather processing, Goyal stressed that future growth cannot come at the cost of the ecology.

"The leather industry must achieve zero pollution in its production with proper treatment plants," the Minister said. He noted that as global brands increasingly move toward ‘green supply chains’, Indian exporters must adopt sustainable technology to remain competitive in European and American markets.

Leveraging Domestic Market

Goyal highlighted that India’s own massive consumer base provides a unique advantage that other exporting nations lack. "The demand within India will itself help the industry achieve large economies of scale," he added. By perfecting products for the Indian middle class, manufacturers can lower per-unit costs, making ‘Made in India’ footwear more aggressive in the international arena.

The awards ceremony recognised exporters who maintained growth despite global headwinds. Goyal lauded the dedication of the winners, stating that their efforts are instrumental in making India a global leader. He concluded by asking industry leaders to collaborate, ensuring that Indian craftsmanship is backed by the reliability of modern, eco-friendly manufacturing standards.