Economic Survey lauds Tamil Nadu's moves to attract global majors like Nike

Don't want to miss the best from Business Standard?

The Economic Survey 2025 indicated that global non-leather footwear manufacturing giants such as Nike, Puma, Reebok, and Adidas are flocking to Tamil Nadu due to policy initiatives taken by the state, including ensuring access to a ready workforce and lining up a flexible incentive package system tailored for each investor. The report cited that Tamil Nadu is a leader in the traditional leather sector and is now championing the growth of non-leather footwear.

 

The survey also highlighted the state’s innovative public education scheme Illam Thedi Kalvi (Education at Doorstep). The shift to Tamil Nadu by global footwear majors is part of the larger China Plus One policy.

 

“It is a moment of immense pride for Tamil Nadu as the survey has recognised our remarkable success in championing the growth of the non-leather footwear sector. Tamil Nadu’s contribution to India’s footwear and leather output is unmatched, with the state producing 38 per cent of the country’s footwear and leather products output, generating over 200,000 jobs, with 80-90 per cent of the jobs in the non-leather footwear sector going to women. This highlights how Tamil Nadu’s progressive policies ensure inclusive and distributed growth,” said state industries minister TRB Rajaa.

 

The state contributes about 47 per cent of India’s total leather exports. Tamil Nadu (TN) also houses technical and academic institutions such as the Central Leather Research Institute, Council for Leather Exports, and Footwear Design and Development Institute.

 

“The state has focused on developing industrial estates in rural areas to ensure access to a ready workforce, particularly women. These efforts have attracted foreign investors, such as Feng Tey from Taiwan, which set up contract manufacturing for Nike. The state has also identified land in districts like Madurai and Sivagangai for future footwear investments, ensuring land availability for potential manufacturers,” the report said.

 

It also praised the measures taken by TN’s investment promotion agency, Guidance, which has made concerted efforts in investment promotion activities. Guidance actively liaised with Taiwanese agencies to strengthen ties with potential investors in the footwear sector. Guidance established contacts with major contract manufacturers of Nike, such as Pou Chen, Hong Fu, Taekwang, and Changshin, positioning Tamil Nadu as an attractive destination for manufacturing, the survey added.

 

The External Engagement Cell in Guidance prepares publicity material in foreign languages such as Mandarin, Japanese, and Korean; it is now being prepared in German and French as well for smooth communication. A dedicated investment facilitator is assigned to each investor. The entire clearance process and operational issues after commencement of production are managed through a single point of contact. This has enhanced Tamil Nadu’s reputation as an investment-friendly state.

 

“Tamil Nadu has emerged as the go-to destination for global footwear manufacturing giants such as Nike, Puma, Adidas, and many more. Our focus on developing non-leather footwear hubs like Ranipet and Perambalur has ensured access to talent and created opportunities in regions that needed them the most. With initiatives such as the dedicated Footwear and Leather Products Policy 2022 and advanced industry-academia collaboration through WorkLabs, we are building a comprehensive ecosystem that supports both large manufacturers and MSMEs,” Rajaa added.

 

The incentive package system offered in Tamil Nadu is flexible and can be tailored to the needs of each investor. Tamil Nadu offers a range of incentives, including capital subsidies, payroll subsidies, and land cost subsidies.

 

The survey said Illam Thedi Kalvi (Education at Doorstep) was launched by the Tamil Nadu government to bridge the education gap caused by the Covid-19 pandemic and the digital divide. The initiative focuses on education through physical methods.