India’s Share In The USD 296 Bn Global Leather & Footwear Market Stands At 1.2% Despite Competitiveness

New Delhi, Oct 7 (KNN) NITI Aayog released the fourth edition of the Trade Watch Quarterly for the January–March quarter (Q4) of FY 2024–25, offering an in-depth assessment of India’s trade performance, evolving global demand trends, and opportunities for export diversification. 

The report also highlights that India’s leather and footwear sector employs 4.4 million people and plays a significant role in exports. 

While India maintains competitiveness in processed leather and niche apparel, its share in the USD 296 billion global market remains modest at 1.8 percent. 

With global demand shifting toward non-leather and sustainable products, the report identifies the need to strengthen MSMEs, enhance R&D investments, and align production with green and design-driven value chains to boost global competitiveness.

The report was launched by B.V.R. Subrahmanyam, CEO, NITI Aayog.

The latest edition underscores the need for India to expand into high-demand global markets while sustaining growth in key export-oriented sectors. 

It also features a special focus on the leather and footwear industry, assessing its employment potential, export competitiveness, and scope for integrating into global value chains.

During Q4 of FY 2024–25, India’s total trade stood at USD 441 billion, reflecting a 2.2 percent year-on-year increase. 

Merchandise exports recorded a modest contraction due to lower shipments of mineral fuels and organic chemicals, though exports of electrical machinery, pharmaceuticals, and cereals posted healthy gains.

Imports rose slightly, driven by increased demand for nuclear reactors, electrical machinery, and inorganic chemicals.

Regionally, North America emerged as India’s strongest export market, expanding by 25 percent and accounting for one-fourth of total exports. In contrast, exports to the European Union, Gulf Cooperation Council (GCC), and ASEAN markets moderated. 

On the import front, the United Arab Emirates overtook Russia as India’s second-largest supplier, supported by higher gold inflows under the Comprehensive Economic Partnership Agreement (CEPA), while imports from China surged, led by electronics demand.

(KNN Bureau)