Asian footwear manufacturers are reviving plans to establish non-leather footwear factories in India, targeting exports to the United States, following a reduction in tariffs on Indian goods. Industry representatives said several investment proposals that had slowed over the past year are now regaining momentum.
Close to a dozen overseas companies are understood to be exploring new manufacturing facilities in India. R. Selvam, Executive Director of the Council for Leather Exports, stated that the list includes Taiwan-based Tienkang and Paiho, as well as Vietnam-based Chin Chen Fuh Vietnam Mold Manufacturing.
He further said that in the wake of the tariff reduction, contract manufacturers had begun ramping up production to meet renewed orders from the United States. He added that several firms from Taiwan, Vietnam, China and Cambodia, which had earlier deferred their India expansion plans, were now keen to proceed with their projects.
Global brands with significant exposure to the US market — including Nike, Adidas, Crocs, Puma, Skechers and Asics — already manufacture footwear in India for export. Industry sources indicated that several of these brands are evaluating capacity expansion in response to improved export visibility following the tariff revision.
Rafiq Ahmed, Chairman of Kothari Industrial Corporation, said the United States had previously been the company’s largest market before tariff increases last year disrupted shipments. He noted that the company had subsequently diversified into markets such as South Korea, Europe and Canada. However, with revised tariffs leading to a revival in orders, he said the firm was now refocusing on the US market. He added that global contract manufacturers were accelerating partnerships with Indian companies to establish new facilities amid rising demand.
Israr Ahmed, Managing Director of Farida Group, said his company has been manufacturing shoes for New Balance in Tamil Nadu through a joint venture with a Taiwan-based contract manufacturer. He stated that the entry of more overseas companies into India would strengthen the non-leather footwear supply chain ecosystem.
Industry representatives said the proposed investments are expected to extend beyond final footwear assembly, contributing to the development of a broader manufacturing ecosystem encompassing machinery, shoelaces, webbing and packaging solutions.
