THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 6, 2026

Union Commerce and Industry Minister Piyush Goyal on Monday asserted that India's leather and footwear industry has the potential to expand employment from the current over 40 lakh people to one crore, while urging the sector to target USD 15 billion in exports over the next five to six years by capitalising on India's expanding network of Free Trade Agreements (FTAs), improving quality, design, branding, sustainability and scale.

Addressing the Council for Leather Exports National Export Excellence Awards 2024-25 in New Delhi, Goyal said the sector, which currently exports leather products worth around USD 4-4.5 billion, was poised for transformational growth and should set far more ambitious goals.

 “If I was in your shoes, or in your leather shoes, if I may say so, I would not aspire for anything less than a 3x outcome in the next five to seven years,” he said, urging the industry to target exports of at least USD 15 billion.

The Minister said the enabling ecosystem was now firmly in place, with India producing high-quality leather goods backed by skilled artisans, experienced workers and industry leaders capable of competing globally. He stressed that the country's recently concluded and upcoming FTAs would open unprecedented opportunities for Indian exporters.

Goyal announced that the India-UK Free Trade Agreement would come into force on July 15, while discussions with the European Union were progressing rapidly. He said both sides were working to complete the legal review within the next 15-20 days, adding that he would meet his EU counterpart in Brussels on July 14 and 15 during a business delegation visit covering Belgium, Spain and Finland to promote Indian products and services.

Highlighting India's growing global trade footprint, Goyal said FTAs had already opened markets in 38 developed countries, while existing agreements with ASEAN, Japan and South Korea had expanded preferential access to 50 countries. He added that negotiations were progressing with Canada, the Gulf Cooperation Council (GCC), Mexico, Brazil, South African Customs Union (SACU), Israel, Eurasia, Central Asia, Russia, Chile and Ecuador, creating vast new opportunities for exporters.

Calling for wider market diversification, the Minister pointed out that 77 per cent of India's leather exports currently go to just 15 countries. He urged exporters to explore smaller developed economies alongside established destinations such as the United States, the United Kingdom, Germany and Italy, particularly for premium and designer leather products.

He said the leather industry's opportunities extended far beyond footwear to include handbags, wallets, jackets, apparel, belts, saddles, upholstery, luxury furniture and numerous industrial and lifestyle applications.

 “The sky is the limit when it comes to the potential of your industry,” he said.

Goyal assured the industry of full support under the Export Promotion Mission, including assistance for overseas exhibitions, trade delegations, warehousing facilities and global marketing initiatives. He encouraged the sector to organise exhibitions every month in different developed countries and suggested establishing overseas warehousing facilities similar to Bharat Mart in Dubai to facilitate faster deliveries.

The Minister underlined that the future competitiveness of the sector would depend on superior quality, design, packaging, branding and economies of scale. He urged companies to invest in world-class testing facilities and laboratories, saying Indian manufacturers should never settle for second-best equipment or certification standards.

Emphasising the sector's employment potential, Goyal said the leather industry currently employed over 40 lakh people and challenged stakeholders to raise that figure to one crore.

 “The sector already employs more than 40 lakh, or over four million, people and asked whether this could rise to one crore. He said it was possible and added that as the sector grew in economic size, it would also benefit from economies of scale.”

He also called for a comprehensive overhaul of India's leather development centres, suggesting that the industry either take over their management or consolidate the existing 12 centres into a smaller number of efficient, well-equipped institutions. He said the Government was willing to hand over their management entirely to industry for skill development and worker training.

Describing the Centre as a "listening government", Goyal urged industry stakeholders to actively participate in decision-making and help transform these institutions into world-class skill development hubs.

The Minister further encouraged collaboration with premier institutions such as the National Institute of Design (NID) for product design, the Indian Institute of Packaging for packaging innovation, the Quality Council of India (QCI) for quality enhancement and the Bureau of Indian Standards (BIS) for strengthening product standards.

He stressed that products sold domestically and internationally should meet the same high standards while workers should receive proper certification, factories should adopt modern equipment and workplaces should prioritise safety.

Goyal also urged the sector to embrace sustainability through efficient recycling of waste, water and effluents, saying environmentally responsible manufacturing would command greater value in global markets. Products manufactured using renewable energy and backed by sustainability certification, he noted, could secure premium prices overseas.

Highlighting the growing role of technology, the Minister said Artificial Intelligence (AI) and robotics offered enormous opportunities for the leather industry. AI could help analyse fashion cycles, forecast demand and improve design capabilities, while robotics could enhance manufacturing precision without reducing employment.

 “Robotics, when used in critical functions requiring high precision, did not take away jobs but added jobs. If precision improved and markets grew, more jobs would be created,” he said.

Quoting Prime Minister Narendra Modi, Goyal said, “We can become a global champion in leather and footwear exports by leveraging research and development and our traditional craftsmanship with modern technology.” He said following this vision would enable the sector to achieve far greater global success.

The Minister noted that leather craftsmanship in India dates back nearly 7,000 years, with roots in the Indus Valley Civilisation, and urged the industry to take pride in India's rich heritage while positioning itself as a global leader in premium leather products.

Congratulating the winners of the National Export Excellence Awards, Goyal called upon exporters to view themselves as ambassadors of Brand India, emphasising that their success generated employment, strengthened self-reliance and enhanced India's reputation in global markets.

He also pointed out that nearly 40 per cent of the workforce in the leather sector comprises women, urging companies to continue investing in worker welfare and inclusive growth, saying such efforts could fundamentally transform the industry's future.