India rises as world's second-largest footwear producer and consumer

Business Friday 21/February/2025 07:41 AM
By: ANI
India rises as world's second-largest footwear producer and consumer
New Delhi: India has solidified its position as the second-largest producer and consumer of footwear in the world, following only China.
With a rapidly growing economy, a large population, and increasing disposable incomes, the Indian footwear industry is experiencing unprecedented growth.
The sector has evolved significantly, driven by changing consumer preferences, technological advancements, and government initiatives supporting domestic manufacturing.
The Indian footwear industry is a significant contributor to the country’s economy, providing employment to millions and supporting numerous small and medium enterprises (SMEs).
India produces nearly 2.6 billion pairs of shoes annually, catering to both domestic and international markets.
The country is responsible for approximately 13% of global footwear production, making it a key player in the industry.
The domestic market is vast, with India consuming over 2.1 billion pairs of footwear annually.
This figure is driven by a population of over 1.4 billion people, a rising middle class, and an increasing focus on fashion and comfort.
The demand is further fueled by urbanization, growth in e-commerce, and the expanding retail sector.

Several factors contribute to India’s dominance in the footwear industry:
Large population and growing middle class: India’s vast population, coupled with rising income levels, has led to increased consumer spending on footwear.
The middle class is expanding rapidly, with a greater inclination towards branded and premium products.
Urbanisation and changing lifestyles: With rapid urbanisation, consumers are becoming more fashion-conscious and demanding diverse styles of footwear.
The growing trend of athleisure and casual wear has also fueled demand for sneakers and sports shoes.
Government support and policies: The Indian government has introduced initiatives like Make in India and Atmanirbhar Bharat (Self-Reliant India) to boost domestic manufacturing.
Various incentives, including tax benefits and subsidies, encourage local production and reduce dependency on imports.

Growth of e-commerce and digital platforms: The rise of e-commerce platforms like Amazon, Flipkart, and Myntra has made footwear more accessible to consumers across the country.
Online sales now account for a significant portion of the total footwear market, providing convenience and a wider range of options to buyers.
Availability of raw materials and skilled labour: India has abundant raw materials, including leather, rubber, and synthetic materials, which are essential for footwear production.
Additionally, the country has a skilled workforce that supports the industry’s growth, particularly in leather craftsmanship.
Segments
The Indian footwear market is diverse, comprising various segments based on materials, target consumers, and price ranges. Some of the major categories include:
Leather footwear: India is among the world’s largest producers of leather and leather products.
Leather footwear, including formal shoes, boots, and handcrafted products, is a major segment, with both domestic and international demand.
Sports and athletic footwear: The rising interest in fitness and sports has driven the demand for sports shoes and sneakers. International brands like Nike, Adidas, and Puma, along with domestic brands such as Bata and Campus, are expanding their presence in this segment.

Casual and fashion footwear: The demand for casual shoes, sandals, and fashionable footwear has surged with the rise of urban fashion trends. Brands are focusing on offering stylish yet affordable products to cater to the younger generation.
Budget and mass market footwear: A significant portion of the Indian population prefers affordable footwear. Non-branded and locally manufactured shoes dominate this segment, catering to lower-income groups and rural markets.

India’s role in the global footwear market
India is not just a major consumer but also a key exporter of footwear.
The country exports leather and non-leather footwear to several regions, including Europe, the United States, and the Middle East.
In recent years, India’s footwear exports have grown substantially, benefiting from the country’s competitive labour costs and skilled artisans.
Major export destinations for Indian footwear include the United States, the United Kingdom, Germany, France, and the United Arab Emirates.
India’s footwear industry is poised for continued growth, with multiple opportunities for expansion and innovation. Key trends that will shape the future include:
Expansion of domestic brands: Indian brands like Bata, Liberty, Relaxo, and Woodland are expanding their footprint, offering competitive products against international brands.
The focus on quality and design innovation is helping them gain a stronger presence in the market.

Rise of sustainable footwear: With increasing awareness about environmental sustainability, brands are investing in eco-friendly materials, biodegradable soles, and ethical production practices.
This shift aligns with global trends toward sustainability in fashion.
Technological advancements: The integration of artificial intelligence (AI), 3D printing, and smart footwear technology is revolutionising the industry.
Customisation, enhanced comfort, and performance-driven designs are becoming key selling points.
Strengthening export markets: India’s growing reputation as a footwear manufacturing hub presents opportunities to strengthen export markets.
Free trade agreements (FTAs) and global partnerships can further boost India’s share in the international footwear industry.
India’s position as the second-largest producer and consumer of footwear is a testament to the industry’s rapid evolution.
With strong domestic demand, an expanding global footprint, and government support, the sector is set to thrive.
While challenges persist, innovation, sustainability, and market expansion will drive the next phase of growth for the Indian footwear industry.
As the country continues to modernise and adapt to global trends, its footwear sector will remain a critical pillar of economic development and employment generation.