PIB TrackerGoyal asks leather and footwear industry to triple exports to USD 15 billion on the back of new FTAs
Commerce Minister Piyush Goyal urged the leather and footwear sector — now exporting about USD 4–4.5 billion — to target at least USD 15 billion in five to six years, leveraging new FTAs (the UK deal takes effect on 15 July), market diversification and stronger quality, design and branding.
What happened
- Commerce Minister Shri Piyush Goyal asked the leather and footwear industry to target at least USD 15 billion in exports in the next five to six years.
- That is a roughly three-fold jump from the current USD 4–4.5 billion, to be achieved via FTAs, market diversification and better quality, design and branding.
- He said India's FTAs are opening 38 developed-country markets; the UK FTA comes into force on 15 July, and the India–EU FTA legal scrub is to finish in 15–20 days.
- Counting ASEAN, Japan and Korea, he put the accessible market at about 50 countries, rising toward 55–60 as deals with Canada, the GCC, Mexico and Brazil progress.
- He warned that 77% of leather exports go to just 15 countries and urged diversification, speaking at the Council for Leather Exports' National Export Excellence Awards 2024-25.
For Prelims
- Council for Leather Exports (CLE): The Export Promotion Council for leather and footwear under the Ministry of Commerce & Industry (DGFT).
- India–UK FTA (CETA): The Comprehensive Economic and Trade Agreement with the UK; per the release it comes into force on 15 July 2026.
- Legal scrubbing: The final legal and linguistic review of a trade agreement's text before signing — the stage the India–EU FTA is at.
- Leather sector: A labour-intensive, MSME-heavy industry; India is among the world's largest producers of hides/leather, but the release notes export concentration in 15 countries.
- Export Promotion Councils: Industry bodies (like CLE, FIEO) that promote exports; distinct from Commodity Boards (Tea, Coffee, Rubber, Spices, Tobacco).
- Don't confuse: An FTA cuts tariffs between partners; a CEPA/CECA is broader (covers services and investment too) — the India–UK deal is a comprehensive agreement.
For UPSC: Read this as export-led industrialisation via trade diplomacy — using a widening FTA network to reposition a labour-intensive, MSME-heavy sector, paired with the standard competitiveness levers (quality, design, branding, scale, diversification). Anchor the India–UK CETA and India–EU FTA, the role of Export Promotion Councils, and export-concentration risk as a vulnerability.
What it is NOT: This is an aspirational export target and an awards-ceremony call to industry, not a new scheme, subsidy or binding commitment. The USD 15 billion figure is a stated goal; FTA dates (UK 15 July) and market counts are the minister's claims. It is about market access and competitiveness, not domestic price support.
For Mains
Syllabus: GS3.8 · GS2.18 · Linkage L2
Anchor
Export-led growth for labour-intensive manufacturing — leveraging FTAs and competitiveness to scale a traditional, MSME-heavy sector like leather and footwear.
Substantiation (data)
Goyal's call to triple leather/footwear exports from ~USD 4–4.5 bn to USD 15 bn in 5–6 years; India–UK FTA in force 15 July; India–EU FTA in legal scrub; 77% of exports concentrated in 15 countries.
Exemplification
Widening FTA network (UK, EU, ASEAN, Japan, Korea; talks with Canada, GCC, Mexico, Brazil) and the levers of quality, design, branding, sustainability and scale.
Problematisation
Export concentration, competition from Vietnam/China/Bangladesh, quality and sustainability compliance, and scale/finance gaps in an MSME-dominated sector constrain the target.
Way-forward
Diversify destinations, upgrade design/branding and standards, integrate into global value chains, and convert FTA market access into realised exports.
Position
Government stance: FTAs plus competitiveness reforms can make labour-intensive sectors globally competitive and expand manufacturing jobs.
Deploys into: Effects of liberalisation, changes in industrial policy and their effects on industrial growth (GS3.8 — export-led manufacturing) · bilateral and regional groupings and agreements involving India (GS2.18 — FTAs: India–UK CETA, India–EU FTA) · Export Promotion Councils, MSMEs, and export diversification.
Ministry of Commerce & Industry · 2026-07-06 · PRID 2281849 · PIB source ↗