Industry should aim for three-fold growth by leveraging FTAs and diversifying export markets:Goyal

Piyush Goyal yesterday called upon the leather and footwear industry to target at least USD 15 billion in exports over the next five to six years, or even earlier, and aim for a three-fold increase in its export performance by leveraging new Free Trade Agreements (FTAs), diversifying markets and strengthening quality, design, branding, sustainability and scale.

Addressing the Council for Leather Exports National Export Excellence Awards for 2024-25 in New Delhi, Shri Goyal said the sector, currently exporting goods worth around USD 4-4.5 billion, has the potential to achieve tremendous transformation. He urged the industry to set ambitious targets for the coming years. “If I was in your shoes, or in your leather shoes, if I may say so, I would not aspire for anything less than a 3x outcome in the next five to seven years,” he said, adding that the industry could target USD 15 billion in exports.

The Minister said enabling conditions had been created for the sector to achieve much bigger outcomes. He noted that India today has high-quality products, highly experienced artisans, cobblers and workers, and industry leaders with the experience and ability to think big, dream big and achieve big.

Shri Goyal said the FTAs finalised by India were opening the doors to 38 developed countries and creating significant new opportunities for the leather and footwear sector. He said the UK FTA would come into force on 15 July. Referring to the EU FTA, he said he had held a very good conversation with his counterpart in the European Union in Brussels on Sunday and that both sides were working together to complete the legal scrub within the next 15-20 days.

The Minister said he would meet his EU counterpart on 14 and 15 July in Brussels. He said he would travel with a delegation of businesspersons to Brussels, Spain and Finland, as India had already begun marketing Indian products, goods and services and taking business delegations abroad to ensure that the country and its industry were future-ready.

Shri Goyal said the industry must be ready to derive the maximum benefit from the FTAs India has finalised and from the new markets in developed countries that have opened up for the sector. He said the time was right for the industry to aim big and aspire for much greater achievements.

Calling for diversification of export destinations, the Minister said 77 per cent of India’s leather exports currently go to only 15 countries. He said the time had come to diversify across the world. Apart from the 38 developed countries whose markets had been opened up, India already has FTAs with the 10 ASEAN countries, Japan and Korea, taking the number to 50 countries, he said.

Shri Goyal said India was in dialogue with Canada and expressed the hope that this could be concluded by the end of the year, taking the number to 51. In the Gulf Cooperation Council region, India already has FTAs with Oman and the UAE and is negotiating with a six-country bloc, which could add four more countries and take the number to 55. India is also talking to Mexico, which would take the number to 56, and to Brazil and three other countries associated with it, taking the number to 60, he said.

The Minister also referred to engagement with the SACU region, including South Africa and neighbouring countries, as well as Israel, Eurasia, Central Asia, Russia and Chile. He said many countries wanted to enter into FTAs and comprehensive economic partnerships with India, adding that Ministers from Ecuador had also expressed interest in an FTA. Countries across the world, he said, were today excited to do business with India.

Shri Goyal urged the industry not to focus only on large markets such as the USA, UK, Germany and Italy, while acknowledging the huge potential in these countries. He said exporters must also look at smaller developed countries, where consumers buy and replace footwear and where designer brands have a market. Indian designer brands, he said, should be introduced in these countries.

The Minister said the potential extended far beyond footwear to bags, wallets, horse saddles, jackets, clothing and apparel. He said there were few industries with as wide a range of applications as leather, noting that leather was used in almost every aspect of life.

He cited applications ranging from operating theatres in hospitals to sports, including cricket, football and hockey grounds and stadiums. He also referred to boots, wallets, belts, watches, watch straps and caps, saying the list of applications was endless.