India gets a foot in Europe's footwear supply-chain door after trade pact

Proposed EU trade pact could shift sourcing from Southeast Asia to Indian export clusters

From German sportswear brands like Adidas and Puma to France’s lifestyle brand Kickers and Denmark’s ECCO, almost all European footwear and leather majors may soon turn to India not just as a consumption market but also as a sustainable sourcing base, driven by the proposed trade deal.

 

According to industry sources, major brands such as Kickers, ECCO, and Adidas are already in the process of increasing their sourcing from India. Indian exporters will have an advantage over competitors such as Vietnam and Indonesia, as duties will come down from 8 per cent for leather and 17 per cent for non-leather products to zero. Around 85 per cent of the European market is in the non-leather segment.

 

This is also expected to create more jobs in export clusters in states such as Tamil Nadu, West Bengal, and Uttar Pradesh, as Taiwanese supplier ecosystem players eye a shift to India.

 

Over the past two years, Tamil Nadu alone has seen ₹15,000 crore in investment, creating 150,000 jobs. Several Taiwanese original equipment manufacturers — such as Pou Chen, Hong Fu (a supplier to Puma, Adidas, and Reebok), Feng Tay, and Shoetown — have set up units in the state during this period.

 

“European mid-sized lifestyle brands such as Kickers, which has partnered Kothari, and Clarks, which has tied up with Metro, signal a larger trend that is likely to accelerate. Many similar European brands will increasingly look towards India for strategic partnerships, seeking local collaborators who bring deep market understanding alongside strong manufacturing capabilities,” said N Mohan, director of Kothari Industrial Corporation and a member of the National Footwear and Leather Development Council.

 

“Many European brands will view India as an emerging market with a large base of consumers with disposable income. Europe consumes around 85 per cent non-leather footwear, and Tamil Nadu has seen considerable investment in this segment in recent times,” Mohan added.

 

Industry players believe opportunities will open up in premium leather bags, accessories, and upholstery, alongside a shift towards value-added manufacturing. “In the next couple of years, our exports should increase substantially and help the leather sector double its turnover. This will create millions of jobs. Large European retailers and brands source globally; once the landed cost advantage tilts in our favour, they will also start investing in the sector in India,” said Sanjay Leekha, chairman, Leather Sector Skill Council.

 

“It will be a game changer, especially for footwear, handbags, and non-leather products. We are looking to treble turnover from European Union (EU) exports to $6 billion by 2030,” said Abdul Wahab, regional chairman (South), Council for Leather Exports. At present, overall exports of leather and leather products stand at around $4.8 billion, of which the EU market accounts for about $2 billion.

 

“The deal presents a major opportunity for the Indian industry. Indian consumers are increasingly aspirational and fashion-conscious, with a growing appetite for global lifestyle brands that offer contemporary, relevant design. Footwear and apparel are no longer viewed merely as functional necessities; they have evolved into expressions of personal style and identity,” Mohan said.