India’s leather sector eyes $50 bn target by 2030 amid New Zealand Free Trade Agreement (FTA)

New Delhi: The FTA with New Zealand is expected to give a big push to India’s leather industry, which expects to grow to $50 billion by 2030, driven by a strategic shift from mass production to high-value-added manufacturing, the Ministry of Commerce and Industry said on Sunday. 

On the eve of the signing of the India-New Zealand Free Trade Agreement (FTA), Union Minister for Commerce and Industry Piyush Goyal and his New Zealand counterpart Todd McClay participated in an Industry Engagement Programme at Agra.

“New Zealand’s rich raw leather resources, combined with India’s manufacturing capabilities, offer a strong complementarity that both sides expressed keenness to harness. On the occasion, both ministers, along with Industry representatives, spoke of positioning Agra as a global sourcing destination, an employment engine, and an export powerhouse on the world stage,” the Commerce Ministry statement said.

Agra, which accounts for approximately 75 per cent of India’s leather footwear production, holds a Geographical Indication (GI) tag for its leather footwear and is a flagship product under the One District One Product scheme.

With the FTA eliminating duties on 100 per cent of Indian exports from Entry into Force, and bringing tariffs on leather and footwear from 5 per cent to zero, Indian exporters are set to gain a decisive competitive advantage. MoS of Fisheries, Animal Husbandry and Dairying, S.P. Baghel, also participated in the interaction.

The interaction brought together leading industry representatives from the leather and footwear, AYUSH, medical devices, light engineering, and sports goods sectors and Laghu Udyog Bharati, Uttar Pradesh. The industry presented its views reflecting the depth and diversity of India’s leather manufacturing prowess, as well as the pharma industry, medical devices industry, and engineering products. (IANS)

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