After tariffs on Indian goods were lowered by Washington, Asian shoe manufacturers have made plans to establish non-leather shoe factories in India with the goal of exporting to the United States market, reported The Times of India. Notably, the USA is the largest footwear market in the world.
President Donald Trump’s high tariffs resulted in the stagnation of a number of investment proposals over the previous year. However, they have picked up steam after the latest development. Now, nearly a dozen foreign businesses are looking at setting up new production facilities in the country.
“This includes Taiwan-based Tienkang and Paiho, and Vietnam-based Chin Chen Fuh Vietnam Mould Manufacturing. In the wake of the tariff reduction, contract manufacturers have already begun ramping up production to meet renewed US orders. Several firms from Taiwan, Vietnam, China and Cambodia that had earlier deferred India plans are now keen to launch their projects,” stated R Selvam who serves as the executive director of the Council for Leather Exports.
Nike, Adidas, Crocs, Puma, Skechers, Asics and other international brands with substantial exposure to the US market now produce footwear in India for export and multiple companies are considering expanding their capacity in response to the tariff adjustment. According to industry representatives, increased export visibility to the US is spurring new investments and capacity development.
The US used to be the company’s biggest market but tariff spikes delayed shipments last year, according to Rafiq Ahmed. He is the chairman of Kothari Industrial Corporation, a well-known non-leather footwear producer that makes footwear under the Crocs brand. Rafiq expressed, “Following the tariff impact, we diversified into markets such as South Korea, Europe and Canada. However, with tariff revisions leading to a revival in orders, we are now refocusing on the US market.”
According to him, international contract manufacturers are strengthening their alliances with Indian entities to build new units in light of the escalating demand. Farida Group MD Israr Ahmed shared similar confidence. He outlined that the company has been producing New Balance shoes in Tamil Nadu via a joint venture with a Taiwanese contract manufacturer. He voiced, “More new companies coming to India will enhance our supply chain ecosystem in the non-leather footwear segment.”
It is anticipated that the projected investments are going to stretch beyond shoe assembly and contribute to the development of a larger production ecosystem that includes equipment, shoelaces, webbing and packaging options.
