The Indian government is working on a $1 billion support package aimed at strengthening and revitalising the domestic footwear manufacturing industry, which has been facing mounting pressure due to adverse global trade conditions. The proposed initiative is intended to address current challenges while reinforcing India’s manufacturing and export capabilities in the sector.
Impact of US Tariff Measures
India’s footwear exporters have been significantly impacted by the imposition of steep tariffs of up to 50% on footwear exports to the United States. These trade barriers have eroded price competitiveness in one of the world’s largest footwear markets, prompting concerns across the industry and necessitating policy intervention to support affected manufacturers.
Details of the Government Support Initiative
The proposed $1 billion package represents a broad-based policy response to mitigate the impact of global trade disruptions and encourage domestic manufacturing. Through this financial commitment, the government aims to enhance production capacity, improve cost efficiency, and strengthen the sector’s long-term competitiveness.
| Key Aspect | Details |
| Proposed Package Size | $1 billion |
| Target Industry | Footwear Manufacturing |
| Key Challenge Addressed | Impact of 50% US tariffs |
| Focus Area | Boosting domestic manufacturing |
Industry Players Likely to Benefit
The support measures are expected to provide relief to major players in the footwear industry, including companies such as Bata and Relaxo Footwear, along with several small and mid-sized manufacturers. By easing financial and operational pressures, the initiative could help companies scale operations and explore alternative export markets.
Sector Outlook
The planned intervention signals the government’s intent to safeguard India’s position in the global footwear value chain. By helping manufacturers navigate near-term trade challenges and build resilience, the support package is expected to contribute to sustained growth, improved export prospects, and stronger domestic manufacturing over the medium to long term.
Summary
The Indian government is preparing a $1 billion support package for the footwear manufacturing sector to counter the impact of high US tariffs and strengthen domestic production. The initiative is expected to benefit leading footwear companies and enhance the sector’s competitiveness, reinforcing India’s role in global footwear manufacturing and exports.
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