Asian Footwear Manufacturers Eye India for Non-Leather Production Amid Tariff Cuts
Revival of Non-Leather Footwear Manufacturing in India
Asian footwear producers are reigniting their ambitions to establish non-leather footwear manufacturing facilities in India, aiming to boost exports to the United States following recent tariff reductions on Indian products. Investment initiatives that had stalled over the past year due to elevated tariffs imposed by the previous US administration are now gaining traction.
Nearly a dozen international firms are currently assessing opportunities for new manufacturing sites in India. Notable companies include Tienkang and Paiho from Taiwan, along with Chin Chen Fuh Vietnam Mold Manufacturing from Vietnam, as highlighted by R Selvam, the executive director of the Council for Leather Exports.
With the tariff cuts, contract manufacturers have started increasing production to fulfill renewed orders from the US. Firms from Taiwan, Vietnam, China, and Cambodia, which had previously postponed their plans in India, are now eager to initiate their projects, Selvam noted. Major global brands such as Nike, Adidas, Crocs, Puma, Skechers, and Asics already produce footwear in India for export and are now considering expanding their production capabilities in light of the tariff changes.
Industry leaders have indicated that the enhanced export prospects to the US, recognized as the largest footwear market globally, are propelling new investments and capacity growth. Rafiq Ahmed, Chairman of Kothari Industrial Corporation, a prominent non-leather footwear manufacturer known for producing Crocs-branded products, mentioned that the US had been their primary market before the tariff increases disrupted their shipments.
“After the tariff hikes, we diversified our market reach to South Korea, Europe, and Canada. However, with the recent tariff adjustments leading to a resurgence in orders, we are now redirecting our focus back to the US market,” Ahmed stated, adding that global contract manufacturers are intensifying collaborations with Indian companies to set up new facilities in response to rising demand.
Israr Ahmed, Managing Director of Farida Group, expressed similar optimism, noting that the company has been producing New Balance shoes in Tamil Nadu through a partnership with a Taiwanese contract manufacturer. “The influx of new companies into India will significantly strengthen our supply chain ecosystem within the non-leather footwear sector,” he remarked.
The anticipated investments are expected to extend beyond mere footwear assembly, contributing to the development of a comprehensive manufacturing ecosystem that includes machinery, shoelaces, webbing, and packaging solutions.