Leather Council Projects 1 Mn Additional Jobs In Tamil Nadu In Footwear Industry In 5 Yrs

Chennai, Mar 17 (KNN) The Council for Leather Exports (CLE) Executive Director R Selvam has projected that the leather and non-leather footwear industry will generate one million jobs in Tamil Nadu over the next five years. 

In a recent interview with the Times of India, Selvam discussed industry expansion in the state, global market trends, and future targets.

India is increasingly recognised as a major manufacturing hub for footwear and leather products, with Tamil Nadu leading the country's exports in this sector. 

The state currently contributes approximately 40 percent of India's total leather, leather products, and footwear exports. 

The global market is witnessing rising demand for athletic and athleisure footwear, a trend that Tamil Nadu is well-positioned to capitalise on following recent foreign direct investments in this segment.

Several international brands have selected Tamil Nadu for contract manufacturing operations. Manufacturers for global footwear giants including Nike, Adidas, and Crocs have either established or expanded their production units in the state. 

Selvam attributes this investment trend to the success of existing foreign direct investment units and supportive government initiatives that have enhanced Tamil Nadu's appeal as an investment destination.

The industry, traditionally concentrated in northern Tamil Nadu, is now expanding into western and central districts. 

Notable expansions include the Feng Tay Group extending beyond Cheyyar to establish facilities in Bargur and Tindivanam. 

The Kothari Evervan Group has developed a production unit in Perambalur district and is creating a comprehensive ecosystem within its footwear park. 

Other significant developments include High Glory Footwear India's upcoming facility in Kallakurichi, Freetrend's unit in Ariyalur, and Walkaroo's established presence in Coimbatore.

The leather and non-leather footwear industry has revised its turnover target to USD 50 billion by 2029-30, comprising USD 14 billion in export turnover and USD 36 billion fr0m the domestic market. 

Tamil Nadu is anticipated to contribute approximately 40 percent of this projected turnover. Currently, the industry employs 4.4 million people nationwide, with Tamil Nadu accounting for 1.9 million jobs. 

The state is expected to add an additional one million employment opportunities over the next five years.

To achieve these ambitious targets, the CLE has implemented a comprehensive strategy that includes participation in major international trade fairs and organising buyer-seller meetings. 

The Council has conducted several investment promotion events in countries including Russia, Japan, and Vietnam, with plans to organise additional events in the future.

Recent policy changes in the Union Budget for 2025-26 are expected to benefit the leather sector significantly. 

The exemption of crust leather with natural finish fr0m the 20 percent export duty represents a substantial advantage for tanners, particularly smaller operations. 

Additionally, the elimination of the 10 percent import duty on wet blue leather will enhance value addition capabilities and promote export growth. 

These measures recognise the critical role of the tanning segment as the foundation of the footwear and leather industry.

(KNN Bureau)