Describing the recently concluded India-UK Comprehensive Economic and Trade Agreement (CETA) as a transformative opportunity for India’s leather and footwear industry, Commerce and Industry Minister Piyush Goyal said tariff elimination is expected to double India’s exports to the UK in the sector—from $494 million in 2024 to $1 billion within three years—at a CAGR of 26.47%.Speaking at the leather, footwear and textiles sector’s industry interaction on the FTA in New Delhi, the Minister highlighted that the agreement eliminates import duties ranging from 2% to 8% for leather goods, 4.5% for leather footwear, and 11.9% for non-leather footwear.
This move is expected to level the playing field for Indian exporters vis-à-vis competitors such as Bangladesh, Cambodia, and Vietnam, who have enjoyed preferential access to the British market.
The agreement also simplifies customs procedures, aligns technical standards, and ensures protection of Indian Geographical Indications (GI) such as Kolhapuri footwear and Mojari, enabling Indian products to gain greater visibility in the UK’s $8.7 billion leather and footwear market.India’s imports of leather, leather products, and footwear from the UK stood at $10.44 million during FY 2024-25. The CETA will also allow British companies to explore the Indian market by setting up units in India or entering into joint ventures with Indian firms.India expects to capture at least 5% additional market share in the UK within the next two years and aims to become one of the top three suppliers in these sectors.According to the Indian side, the CETA will promote increased tie-ups between the UK and Indian leather and footwear sectors through investments, technical collaborations, and joint ventures. It will also support MSMEs by facilitating trade finance, training, and partner identification.Officials from the Department of Revenue, Department of Textiles, and the Department for Promotion of Industry and Internal Trade (DPIIT) attended the interaction.Industry participants included representatives from the Confederation of Indian Industry (CII), Council for Leather Exports (CLE), Confederation of Indian Footwear Industry (CIFI), Indian Footwear Components Manufacturers Association (IFCOMA), leading exporters and manufacturers identified by CLE, the Footwear Design and Development Institute (FDDI), Central Leather Research Institute (CLRI), and the Leather Sector Skill Council (LSSC).(Edited by : Akanksha Upadhyay)
Source link
