US tariff cut revives push for footwear factories in India

CHENNAI: Asian footwear manufacturers are reviving plans to set up non-leather footwear factories in India, targeting exports to the American market, following a reduction in tariffs on Indian goods. Several investment proposals that had slowed over the past year after high tariffs were imposed by US President Donald Trump are now regaining momentum.

Close to a dozen overseas companies are exploring new manufacturing units in India. "This includes Taiwan-based Tienkang and Paiho, and Vietnam-based Chin Chen Fuh Vietnam Mold Manufacturing," said R Selvam, executive director of the Council for Leather Exports.

"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," he added. Global brands with significant exposure to the US market — including Nike, Adidas, Crocs, Puma, Skechers and Asics — already manufacture footwear in India for exports, with many now evaluating capacity expansion following the tariff revision.

Industry representatives said improving export visibility to the US — the world's largest footwear market — is driving fresh investments and capacity expansion. Rafiq Ahmed, Chairman of Kothari Industrial Corporation, a leading non-leather footwear manufacturer producing Crocs-branded footwear, said the US had been the company's largest market before tariff hikes last year disrupted shipments.

"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," Ahmed said, adding that global contract manufacturers are accelerating partnerships with Indian firms to establish new facilities amid rising demand.

Echoing similar optimism, Israr Ahmed, MD of Farida Group, said the company has been manufacturing New Balance shoes in Tamil Nadu through a joint venture with a Taiwan-based contract manufacturer. "More new companies coming to India will enhance our supply chain ecosystem in the non-leather footwear segment," he said.

The proposed investments are expected to extend beyond footwear assembly, helping create a broader manufacturing ecosystem covering machinery, shoelaces, webbing and packaging solutions.