Taiwanese, Vietnamese firms keen to invest in footwear sector in India: CLE

New Delhi, Jul 13 (PTI) Companies from Taiwan and Vietnam are keen to invest in India's non-leather footwear sector, and the government support is crucial to facilitate these investments, Council for Leather Exports (CLE) Chairman RK Jalan said on Sunday.

Jalan said these Taiwanese and Vietnamese firms import products like shoe soles, moulds, machinery, and fabrics from countries like China.

"Vietnamese and Taiwanese firms are keen to invest in India. We need to support them so that they can import these goods smoothly into the country for their manufacturing facilities," he said.

The country's exports are growing at a healthy rate, and the council is aiming for USD 7 billion worth of shipments in 2025-26, he added.

The exports stood at USD 5.75 billion in 2024-25. The US was the top destination for Indian exporters with shipments worth USD 957 million (about 20 per cent share). It was followed by the UK (11 per cent) and Germany.

"We are expecting about 18 per cent growth this year. Promotion of manufacturing in the country will help further boost exports and job creation," Jalan added.

He said that a trade pact with the US will help increase the share in the American market. At present, this labour-intensive sector attracts 18.5 per cent duty in the US.

The two countries are major players in the global footwear sector. Vietnam is a major global hub for manufacturing and exporting footwear, while Taiwan plays a key role in the design, development, and production of footwear for leading international brands.

He also urged the government to roll out the focused product scheme for the footwear and leather sectors announced in the Budget to enhance productivity, competitiveness and exports.

The scheme will support design capacity, component manufacturing, and machinery required for the production of non-leather quality footwear.

Sharing similar views, Kanpur-based Growmore International Ltd MD Yadvendra Singh Sachan said Taiwanese companies have already invested in firms in Tamil Nadu.

"They have the best technologies in the non-leather footwear sector. Their entry will help domestic firms in increasing quality production," Sachan said, adding huge opportunities are there for investments in Uttar Pradesh and Bihar because of the availability of affordable labour in these states.

He said that Growmore International is also looking for collaborations with foreign firms to enhance the productivity of leather articles. PTI RR BAL BAL