India’s footwear and leather industry is set for a transformative leap as Finance Minister Nirmala Sitharaman unveiled a dedicated scheme aimed at making India a global manufacturing hub for footwear and leather products. This initiative, announced during the Union Budget 2025, is expected to generate 22 lakh jobs and drive the sector to a projected turnover of ₹4 lakh crore, with exports reaching ₹1.1 lakh crore.
As part of the government’s broader economic strategy, Sitharaman also exempted Basic Customs Duty on Wet Blue leather, facilitating imports that will enhance domestic value addition and boost employment in the leather sector. This exemption is expected to significantly benefit Indian manufacturers by reducing raw material costs and improving global competitiveness.
The announcement sparked positive market sentiment, with shares of leading footwear and leather companies witnessing notable gains. Mirza International surged 15.79%, Relaxo Footwears climbed over 3%, while Campus Activewear and Liberty Shoes also registered substantial growth, reflecting investor confidence in the sector’s future.
The Budget 2025 also emphasized investment as a key growth driver, with a focus on clean technology manufacturing, job creation, and skilling initiatives. The government plans to establish National Centres of Excellence for Skilling and provide broadband connectivity to government secondary schools and primary healthcare centers, ensuring a skilled workforce for industries, including footwear and leather.
With this focused initiative, India aims to strengthen its position as a global leader in footwear manufacturing, creating a robust ecosystem for innovation, employment, and export growth. Industry stakeholders are optimistic that these measures will propel India’s leather and footwear sector to new heights, reinforcing its contribution to the national economy.
