According to a January 20 Times of India article (via Moneycontrol), the Central government is drafting a $1 billion package for the footwear manufacturing sector as the industry looks for incentives to fight 50% tariffs imposed by the US.
Central Government Footwear Support Plan
According to the report, a production-linked incentive program was being considered by the government for the promotion of industry and internal commerce. According to the article, the government later canceled the proposal and offered a comprehensive package that aimed to address the complete key chain.
The package has not yet been finalized, but the talks are advanced, according to the officials, who were quoted by TOI.
👟 India Footwear Manufacturing Package
- Proposed Size: $1 billion support package
- Objective: Offset impact of 50% US tariffs
- Focus Area: Entire footwear value chain
- Status: Discussions at advanced stage
- Reported By: Times of India
India’s Position in the Global Footwear Market
According to the report, India is currently the world’s second-largest producer of shoes. Prior to China and Vietnam taking the lead in sports and athleisure shoes, the nation was a significant player in the leather footwear market.
🌍 Global Footwear Market Shift
- India’s Rank: Second-largest shoe producer globally
- Traditional Strength: Leather footwear manufacturing
- Rising Segments: Sports and athleisure shoes
- Main Competitors: China and Vietnam
- Current Challenge: Regaining global competitiveness
Frequently asked questions
1. For what reason is the Center preparing a $1 billion program for the shoe sector?
The package is being planned to assist Indian shoe producers in mitigating the effects of the US’s harsh 50% tariffs.
2. What kind of assistance is this package taking into account?
The government is developing a comprehensive package that covers the whole footwear value chain in place of a production-linked incentive (PLI) system.
3. Is the incentive program for shoes complete?
No, officials say that although discussions are advanced, the plan is still being considered.
4. How does India fare in the world market for shoes?
Right now, India is the world’s second-largest producer of shoes.
5. Why has India fallen behind in certain shoe markets?
Prior to China and Vietnam taking the lead as sports and athleisure shoes emerged as the primary growth categories, India was the leader in leather footwear.
Conclusion
In the face of growing pressure from international commerce, the Center intends to safeguard and bolster domestic industry with the planned $1 billion footwear package. If approved, the all-encompassing assistance might help Indian athletes become more competitive, branch out from conventional leather footwear, and raise their profile in the rapidly expanding sports and athleisure markets.
Disclaimer
This content is for informational purposes only and should not be considered policy, trade, or investment advice.
