Union Commerce and Industry Minister Shri Piyush Goyal addressed the Council for Leather Exports National Export Excellence Awards for 2024-25, setting ambitious growth targets for the leather and footwear industry. The Minister called for exports to reach at least USD 15 billion within the next five to six years, representing a three-fold increase from the current export level of USD 4-4.5 billion.
Goyal announced significant trade agreement developments, noting that the UK Free Trade Agreement will come into force on 15 July 2026. Regarding the EU FTA, he reported that the legal scrub process is expected to be completed within the next 15-20 days, following productive discussions with his EU counterpart in Brussels. These agreements will open access to 38 developed countries for Indian leather exports.
The Minister emphasized the need for market diversification, noting that 77% of India's leather exports currently go to only 15 countries. He outlined India's expanding FTA network, including existing agreements with 10 ASEAN countries, Japan, and Korea (totaling 50 countries), ongoing dialogues with Canada (potentially concluding by year-end), negotiations with the Gulf Cooperation Council bloc, and discussions with Mexico, Brazil, and other South American countries that could expand access to 60 countries.
Goyal highlighted the sector's employment potential, noting it currently employs over 40 lakh (4 million) people and should aim to expand to 1 crore (10 million) workers. He urged the industry to strengthen leather development centers, suggesting that large exporting units (those with ₹200-300 crore exports) should take management responsibility for the country's 12 leather development centers or consider consolidating them to 3-4 efficient centers.
The Minister called for strategic partnerships with the National Institute of Design (NID) for design enhancement, Indian Institute of Packaging for improved packaging, Quality Council of India (QCI) for better quality output and testing laboratories, and Bureau of Indian Standards (BIS) to elevate product standards. He emphasized that Indian products sold globally and domestically should meet the same high-quality standards.
Goyal identified key growth areas including better quality, focus on standards, finishing, designing, packaging, brand building, and achieving economies of scale. He specifically urged the industry to focus on sustainability through recycling waste, water, and effluents, noting that sustainably manufactured products could command greater value in international markets. The Minister also encouraged adoption of robotics and Artificial Intelligence for precision manufacturing, design study, and demand forecasting, asserting that technology adoption creates rather than reduces jobs when markets expand.
The Export Promotion Mission will support the industry through delegations, international exhibitions, and warehousing solutions similar to Bharat Mart in Dubai. Goyal urged monthly exhibitions in developed countries and assured support for micro and small units participating in these efforts. He quoted Prime Minister Narendra Modi's vision of becoming a global champion in leather and footwear exports by leveraging traditional craftsmanship with modern technology and research & development.