US companies have turned to leather from India. They have been hit by tariffs on products imported from China. So there is an US company which is looking to buy 50 million pairs of footwear from India. The leather industry in India has prepared a roadmap to raise exports from $5.6 billion to $10 billion by 2021-22. And the US-China trade war has come in handy for meeting the target.

Footwear sub-sector accounts for half of India’s leather exports. The leather garment sub-sector produces 16 million pieces a year and accounts for one-tenth of exports. Other products such as articles (wallets, handbags), industrial gloves, harness and saddles account for a quarter of exports.

The industry employs 4.5 million people. India has come up with a Rs 2,600 crore special package for the industry— the funds would be spent over three years between 2017 and 2020. However, capacity is a constraint in the footwear sub-sector. Vietnam may have maxed out on its footwear capacity, and buyers would look toward India. The industry is seeking support to ramp up capacities.

The US has slapped tariffs on Chinese goods such as handbags and wallets. Leather footwear is not yet in the list, but this may be a matter of time.