The Middle East and Africa (MEA) markets hold huge unexplored potential for India’s leather products and footwear industry as the Country is working towards a target of US$13.70 billion turnover in exports by 2030 as part of a strategic growth initiative, said a senior official today.
Speaking at a press conference at the opening day of the region’s largest leather products and footwear show, DIFLEX 2024, Mr. R. Selvam IAS, Executive Director, Council of Leather Exports (CLE), Ministry of Commerce & Industry, Government of India, said the GCC markets, particularly the UAE and Saudi Arabia, are key markets for India’s export growth push.
“The exports of Indian leather and footwear products are on a positive growth trajectory in 2024-2025 fiscal with the first half touching US$2.45 billion, and we are confident of a faster growth in the second half to clock an anticipated growth of over US$ 5 billion by the end of the year,” said Mr. Selvam.
The export of footwear, leather and leather products from India was to the tune of US $ 4.69 billion during 2023-24.
In the context of increasing Free Trade Agreements (FTAs) like the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, the growth potential GCC markets offer for Indian leather and footwear products is immense, said Mr. Jeen Joshua, Managing Director, Verifair, organisers of DIFLEX 2024.
GCC now accounts for 15 per cent of India’s total trade, with bilateral trade touching US$162 billion last year. The key markets of the UAE and Saudi Arabia account for a lion’s share of this trade at US$ 84.84 billion in FY 23 and US$10.72 billion, respectively. It is expected that the India-UAE non-oil trade will increase to US$100 billion over the next five years.
“With GCC’s retail industry projected to reach over an estimated US$350 billion in the next four years, the concomitant growth dividend for the leather and footwear segment will be exponential. Coupled with this is a nearly two per cent anticipated population growth that will further fuel growth prospects for the industry,” Mr. Joshua said.
Over 50 top Indian footwear and leather goods manufacturers are taking part in DIFLEX 2024, joining more than 250 brands showcasing over 10,000 world-class product lines and 300 hosted buyers from all over the world.
It is anticipated that the show will receive over 4,000 trade visitors, a majority of them serious buyers from the region and across the world. Apart from India, participants at DIFLEX are from the leading footwear and leather producing hubs of Italy, Portugal, Egypt, Spain, Thailand, Pakistan, UAE, Jordan, Syria, Turkey, India, China, and many others.
India looks at raising MEA leather Market Share in US$13.70 billion Push by 2030
