Mumbai: India is the second largest footwear manufacturer in the world, accounting for 15 per cent of global footwear production. Leading international brands source leather footwear from India. In addition, large global retail chains are increasingly looking to step up sourcing of leather footwear from India, states the DHL India Trade Outlook Report released recently.

Leather footwear exports have been the engine of growth for India's leather exports. Currently, footwear alone accounts for 32 per cent of the total value of Indian leather and leather product exports.

The DHL India Trade Outlook is a comprehensive monthly report that measures the economic and trade scenario in India.

India's footwear exports stood at $858.8 million in FY05, which translates into 1.1 per cent of India's total merchandise exports. Footwear exports from India have exhibited a healthy growth during the last five years. Leather footwear is the most important category in India's footwear exports and contributes to 67 per cent of total footwear exports. In terms of destinations, UK is the most important market for Indian footwear exports, accounting for 21 per cent of the export value in FY05.

India's exports of leather footwear have grown at 13.2 per cent per annum during the period FY01-FY-05 and they were worth $580.9 million in FY05. UK is the largest destination for India's leather footwear exports, accounting for 24 per cent of India's total exports in this category. India's leather footwear exports to Germany have increased phenomenally during the last five years (26.6 per cent during FY01-FY05) and in FY04, Germany replaced the US to become the second largest export destination for leather footwear.

A number of footwear companies from South East Asia and Europe are increasingly looking to set up their manufacturing facilities in India. The in-principal approval given by the union government for the Footwear Export Processing Zone at a 125-acre zone in Irungaattukottai in South India is expected to attract further interest in the Indian market. In essence, there are vast opportunities for India to increase footwear exports.