In a remarkable display of resilience, Kanpur's famed leather and footwear sector has staged a powerful comeback, registering a significant 16% growth in value. This surge comes despite the Indian leather industry facing a projected loss of 10–12 per cent, estimated at a staggering ₹12,000 crore, in the current financial year due to a hefty 50% tariff imposed by the United States.
Navigating Global Headwinds with Domestic Strength
The chairman of the Leather Sector Skill Council and director at the National Skill Development Corporation (NSDC), Mukhtar-ul Amin, who also heads the Super House Group, confirmed this positive turnaround. He acknowledged the severe impact of the US tariff, which led to the substantial revenue loss. However, the industry's strategic pivot towards bolstering domestic consumption and exploring smaller international markets has paid rich dividends.
Amin highlighted that organised retail and a growing appetite for branded products have significantly energised the home market. Furthermore, trade agreements with countries like Russia and the United Kingdom have opened new, encouraging avenues for exports, helping to offset the challenges in the American market.
A Transformative Shift in Production and Consumption
One of the most striking changes noted by Amin is the reversal in India's footwear production and import dynamics. "Earlier, around 95% of footwear demand was met through imports, while domestic production catered to only 15%. Now, the situation has reversed," he explained. This indicates a massive strengthening of indigenous manufacturing capabilities.
The industry is also riding a wave of changing consumer behaviour. India is gradually embracing a European-style shoe culture. Per capita footwear consumption, which stood at a mere 1.1 pairs just three years ago, has now jumped to 2.1 pairs. Amin expressed strong confidence that this number will reach three pairs per capita within the next couple of years. This shift is transforming footwear from a basic necessity into a fashion-driven industry.
Ambitious Targets for the Future
Looking ahead, the outlook for the Indian footwear sector is overwhelmingly positive. Talking to reporters, Mukhtar-ul Amin projected that the industry is on track to achieve a monumental turnover of USD 45 billion by the year 2030. He added that for the current financial year itself, the industry's size is expected to reach approximately USD 20 billion, showcasing robust year-on-year growth.
The story of Kanpur's leather industry is a testament to strategic adaptation and the power of a growing domestic economy. By turning a challenge into an opportunity, the sector has not only weathered a global storm but has also set the stage for a much more ambitious and fashionable future.
