India is preparing a Rs 2,600 crore incentive package for the leather and footwear sector to boost exports and job creation. The package, which includes both tax and non-tax benefits, was prepared on the lines of the steps announced for the textile sector last year. Major players include: Bata, Liberty Shoes, Mirza and Relaxo Footwear.

The industry is mainly dominated by products made of synthetic leather. It accounts for about 90 per cent of the total leather manufacturing in the country. About 30 lakh people are directly employed in the sector. The aim is to increase the sector’s exports to 15 billion dollars by 2020 from the current seven billion dollars.

In the global market, China is giving a tough competition to Indian leather manufacturers in terms of pricing. The growth in the Indian fashion and lifestyle market has given an impetus to the footwear industry as well. From a basic need-based industry, it has become an evolving fashion and style category.

India is the second largest footwear producer in the world, with footwear production accounting for approximately nine per cent of the global annual production – 22 billion pairs as compared to China, which produces over 60 per cent of the global production.