5 Stocks to Benefit as FTAs Are Set to Boost India’s Leather and Footwear Exports to $14 Billion

Synopsis: India’s leather and footwear exports are projected to reach USD 14 billion by 2030, driven by new Free Trade Agreements and expanding global market access, strengthening the sector’s long-term growth prospects and export competitiveness.

India’s leather and footwear industry is poised for significant growth as expanding global trade opportunities and supportive government initiatives strengthen its position in international markets. The sector remains an important contributor to India’s manufacturing ecosystem, employment generation, and export earnings, with demand expected to rise across key global markets.

The industry’s outlook is further supported by the government’s focus on boosting exports through Free Trade Agreements (FTAs), improving domestic manufacturing capabilities, and attracting foreign investments. As Indian manufacturers gain wider market access and enhance their global competitiveness, the sector is expected to witness sustained long-term growth.

Export and Growth Targets by 2030

The Council for Leather Exports (CLE) has projected that India’s leather goods and footwear exports could reach USD 14 billion by 2030. This ambitious export milestone is part of a larger strategic blueprint aimed at driving the overall industry turnover to USD 50 billion by the end of the decade.

CLE Chairman Ramesh Kumar Juneja highlighted that newly finalized and upcoming Free Trade Agreements (FTAs) are critical catalysts for this growth. The industry is highly anticipating a trade pact with the United States, which currently stands as India’s largest export destination. Securing this agreement will offer preferential market access over global competitors. 

Additionally, existing and upcoming pacts with regions like the European Union, the UK, New Zealand, the UAE, Australia, and the EFTA nations (Switzerland, Norway, Iceland, and Liechtenstein) are expected to level the playing field and open new avenues for domestic exporters.

Current Trade Performance and Employment

In the last fiscal year, India’s leather and footwear exports reached USD 4.75 billion. Tamil Nadu emerged as the primary contributor, accounting for nearly 37% of the country’s sector exports at USD 1.59 billion. The industry also serves as a vital pillar for socio-economic empowerment, with women making up more than 40% of the workforce in Tamil Nadu. Looking ahead, the sector’s five-year plan aims to generate employment for an additional 2.2 million people.

To successfully convert these trade opportunities into reality, the CLE intends to pursue an aggressive marketing plan overseas. This roadmap includes forging deeper collaborations with international leather and footwear industry associations, strengthening the domestic supply chain, organizing large-scale exhibitions, and actively working to attract Foreign Direct Investment (FDI) from prominent global corporations.

Stocks to benefit 

Bata India Ltd

Bata India Ltd is one of the country’s largest and most recognized footwear companies, offering a wide range of products across formal, casual, sports, and school footwear segments. With an extensive retail network and growing premium portfolio, the company is well-positioned to benefit from rising domestic demand and expanding export opportunities under new Free Trade Agreements (FTAs). With a market capitalisation of Rs. 8,844 cr, the shares of Bata India Ltd were trading at Rs. 688.15 per share, up from its previous close of Rs. 685.05 per share.

Liberty Shoes Ltd

Liberty Shoes Ltd is a leading Indian footwear manufacturer with a diverse portfolio catering to men, women, and children across formal, casual, sports, and fashion categories. The company has a strong domestic distribution network and exports its products to several international markets, making it a potential beneficiary of improved market access through upcoming FTAs.

With a market capitalisation of Rs. 474 cr, the shares of Liberty Shoes Ltd were trading at Rs. 278.50 per share, increasing 5% in today’s market session, making a high of Rs. 283.65, up from its previous close of Rs. 271.25 per share. 

Relaxo Footwears Ltd

Relaxo Footwears Ltd is one of India’s largest footwear manufacturers, known for popular brands such as Sparx, Flite, and Bahamas. The company enjoys a strong presence in the affordable and mass-market segments, supported by a wide distribution network. 

With a market capitalisation of Rs. 9,922 cr, the shares of Relaxo Footwears Ltd were trading at Rs. 398.60 per share, increasing 1.5% in today’s market session, making a high of Rs. 399.05, up from its previous close of Rs. 392.80 per share. 

Metro Brands Ltd

Metro Brands Ltd is among India’s leading footwear retailers, operating premium and mid-premium brands through an extensive network of exclusive stores. The company also partners with several international brands, giving it a diversified product portfolio. 

With a market capitalisation of Rs. 28,608 cr, the shares of Metro Brands Ltd were trading at Rs. 1049.60 per share, down from its previous close of Rs. 1,058.65 per share. 

Mirza International Ltd

Mirza International Ltd is a prominent manufacturer and exporter of leather footwear and finished leather products. The company supplies to several global brands and has a significant presence in export markets through its manufacturing facilities and established distribution channels. 

With a market capitalisation of Rs. 528 cr, the shares of Mirza International Ltd were trading at Rs. 38.25 per share, increasing 17% in today’s market session, making a high of Rs. 41.86, up from its previous close of Rs. 35.70 per share. 

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