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Tamil Nadu’s Footwear Industry Poised to Create One Million Jobs in Five Years

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Chennai, March 17 – Tamil Nadu’s footwear sector is on track to generate one million new jobs over the next five years, according to R Selvam, Executive Director of the Council for Leather Exports (CLE).

In a recent interview with The Times of India, Selvam highlighted the state’s pivotal role in India’s leather and non-leather footwear industry, discussing its rapid expansion, global market trends, and ambitious future targets.

Tamil Nadu remains a dominant force in the country’s footwear and leather exports, currently accounting for nearly 40% of India’s total output in this segment. The state is well-positioned to leverage the growing global demand for athletic and athleisure footwear, thanks to recent foreign direct investments (FDI) in the sector.

Several international brands have chosen Tamil Nadu as a key manufacturing hub, with major global players such as Nike, Adidas, and Crocs either establishing or expanding production units in the region. Selvam attributes this influx of investments to the success of existing FDI-backed facilities and supportive government policies that enhance Tamil Nadu’s appeal as a business destination.

While the industry has traditionally been concentrated in northern Tamil Nadu, it is now expanding into western and central districts. Notable developments include the Feng Tay Group’s expansion from Cheyyar to Bargur and Tindivanam, Kothari Evervan Group’s new facility in Perambalur, and High Glory Footwear India’s upcoming plant in Kallakurichi. Additionally, Freetrend has set up operations in Ariyalur, while Walkaroo continues to strengthen its presence in Coimbatore.

The industry has set an ambitious target of reaching a turnover of USD 50 billion by 2029-30, with USD 14 billion projected from exports and USD 36 billion from the domestic market. Tamil Nadu is expected to contribute around 40% of this revenue. Currently, the sector employs 4.4 million people across India, with Tamil Nadu accounting for 1.9 million jobs. The projected employment growth would elevate the state’s workforce in the sector to nearly 3 million.

To drive this expansion, CLE has adopted a multi-faceted approach, including participation in leading international trade fairs and organizing buyer-seller meetings. The Council has conducted investment promotion events in Russia, Japan, and Vietnam, with additional initiatives planned to attract global stakeholders.

Recent policy changes in the Union Budget for 2025-26 are set to provide a significant boost to the leather sector. The exemption of crust leather with a natural finish from the 20% export duty is expected to benefit tanners, particularly small-scale operators. Furthermore, the removal of the 10% import duty on wet blue leather will enhance value-added production and stimulate export growth. These reforms underscore the vital role of the tanning segment as the foundation of India’s footwear and leather industry.