India's Footwear Exports Soar 25% on EU Trade Deal

India's leather, non-leather footwear, and related product exports saw a substantial 25% year-on-year rise, accumulating ₹48,667 crore ($5.7 billion) in FY25. This surge is significantly bolstered by the India-EU Free Trade Agreement, which came into effect recently. The agreement eliminates tariffs ranging from 4.5% to 17% on various products, thereby enhancing the competitiveness of Indian goods in the global market.

The EU, a bloc of 27 nations, alongside the UK, represents the largest combined export market for India's footwear industry, accounting for approximately 60% of the total exports. The FTA is anticipated to provide a significant boost to Indian exporters targeting the EU's substantial import market, estimated at nearly $100 billion. This agreement is also expected to stimulate sourcing from key manufacturing hubs like Agra-Kanpur in Uttar Pradesh and Vellore-Ambur in Tamil Nadu, fostering job creation and enterprise growth.

Industry experts note that the zero-duty access granted by the FTA puts Indian exporters on par with competitors such as Vietnam and Bangladesh, who already benefit from similar trade arrangements with the EU. While China dominates mass-market production and Italy excels in premium leather, this new agreement is poised to help India increase its less than 2% share in the global leather and footwear trade, valued at $296.5 billion. It is projected that buyers will commence discussions with Indian suppliers in the coming months.