India's footwear exports may touch $3.37 bn in next 2 yrs.

NEW DELHI: With the global economies recovering from the slowdown, India's footwear exports are expected to more than double to USD 3.37 billion (about Rs 14, 828 crore) in the next two years over 2008-09 period.

The Indian footwear industry, the second-largest in the world after China, is growing at a rate of about 10 per cent annually, President of Indian Footwear Components Manufacturers Association B D Bhaiya told reporters here.

"Apart from growth in the domestic sector, we have also set a target of USD 3.37 billion in exports of footwear alone by 2013-14," Bhaiya said.

In 2008-09, footwear exports from India was USD 1.53 billion. Of the total exports of leather and leather products, the segment contributes over 40 per cent.

Several international brands like Nike, Addidas and Reebok source footwear from the USD five-billion domestic industry.

India currently produces about 2.06 billion pairs of shoes in different categories. Per capita consumption of footwear in the country has also increased to two pairs from a mere 0.5 pairs a decade ago.

"With the quality and price competitiveness that has been proved, I am confident that India will fast become a major player in the global footwear market, as more and more companies are shifting their sourcing needs as well as production basis towards us," Bhaiya said.

The country's major export markets are the US and Europe. India allows 100 per cent foreign direct investment in the sector.

Companies like Formas Kunz (Brazil), Feng Tay Enterprises (Taiwan) and Apache Footwear (China) have set production basis in India, he said.

The industry is organising a three-day Footwear, Materials, Manufacturing and Technology Fair in Greater Noida from May 7 to attract global players.

Source : The Economic Times