01 Aug India’s Footwear Industry Growing; Imports From China up 133%
Exports are expected to grow at a CAGR of 15% in the next 5 years. About 75% of the total footwear exports are the men’s footwear and rest 25% is contributed by women’s, children’s and sports footwear.
The top major exporting destinations of India in the last five years are United Kingdom, Germany and USA. United Kingdom accounts for around 20 percent of the total exports of Indian Footwear Industry, whereas Germany accounts for around 15 percent and USA accounts for around 10 percent of the total exports of Indian Footwear industry.
Exports to UK have risen by about 45 percent from 2008-09 to 2012-13. Exports to USA have increased by around 44 percent whereas exports to Germany have increased by around 10 percent from 2008-09 to 2012-13. The growth of exports has been the highest in the case of Belgium. The exports to Belgium have risen by 126.6 percent.
The major countries from which the Indian Footwear Industry imports are China, Vietnam and Italy. The highest share in India’s total imports is of China i.e. around 63 percent of the total imports. As China is dumping its goods in India at a lower rate and is offering a wide variety, this is causing a threat to the Indian domestic market for Footwears.
People prefer Chinese footwear over domestically produced goods as they are cheaper and offer a wide variety of goods. Increasing imports are restricting the growth of the Indian Footwear Industry.
In the last 5 years, China’s imports have increased by 132.67 percent and are eating the major market size of all categories i.e. men, women and children. The imports from China have surged the most by rising about 295 percent. Imports from USA have declined but imports from all other countries have increased tremendously.
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