The leather and footwear sector stands at a decisive crossroads between market fragmentation and new opportunities for international integration. During the 39th India International Leather Fair in Chennai, R. Selvam, Executive Director of the CLE (Council for Leather Exports), and Amb. Mr. Jawed Ashraf, ITPO Chairman, outlined the path for an industry aiming to become a pillar of the global economy.
The Push Toward $50 Billion: R. Selvam’s Analysis
According to data provided by R. Selvam, the Indian industry has demonstrated extraordinary resilience despite global tariff turbulence. Exports have maintained stability near $5.5 billion. Selvam emphasized the importance of government support for the sector’s growth:
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The government has implemented an incentive scheme worth over one billion dollars to boost national production and exports.
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The ambitious goal is to reach a turnover of $50 billion.
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The target includes the creation of 2.2 million new jobs.
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Eliminating duties on finished leather and reducing export duties on raw hide (from 40% to 20%) are fundamental steps for competitiveness.
The New Trade Paradigm: Amb. Mr. Jawed Ashraf and Agreements with the EU
Amb. Mr. Jawed Ashraf’s intervention offered a profound geopolitical perspective, focusing on the transition toward regionalism and digital payment systems. He highlighted the historic Free Trade Agreement (FTA) between India and the European Union:
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The agreement covers 99% of current exports to Europe.
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70% of tariff lines will become duty-free as soon as the agreement enters into force.
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The agreement includes high standards regarding intellectual property, data, the environment, and labor.
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The Ambassador insisted on the need to move up the value chain: “We do not want to compete solely on price, but on style and design to satisfy the urbanized and connected middle class”. The goal is to collaborate with major European fashion houses like Louis Vuitton and Dior, bringing Indian excellence into premium segments.
Synergy with Italy and Sustainability
The dialogue highlighted how the agreement is a “win-win” for both regions. While India aims to double its exports of finished products by 2030, countries like Italy will benefit from growing demand for:
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High-precision machinery: A sector where Italian and German technology are undisputed leaders in footwear production.
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Quality components: Essential elements (buckles, eyelets, yarns) for transforming Indian leather into luxury goods.
Regarding sustainability, Amb. Mr. Jawed Ashraf offered reassurances concerning the European CBAM (Carbon Tax) mechanism, explaining that the leather industry will be only marginally affected compared to heavy sectors. India is already investing in traceability via QR Codes (from the farm to the finished product) and ethical production to align with strict EU environmental standards.
The shared vision of R. Selvam and Amb. Mr. Jawed Ashraf is a leather industry that is no longer just mass manufacturing, but a connected and technologically advanced ecosystem. Thanks to the synergy with European excellence, the sector is ready to transform geopolitical challenges into opportunities for qualitative growth.
Amb. Mr. Jawed Ashraf, Chairman, ITPO
from the left: Selvam R, Amb. Mr. Jawed Ashraf, Dr. Neeraj Kharwal