There exists enormous potential for footwear exports to multiply in the future as India has tapped only a small portion of the total global markets. In 1998-99, India exported leather footwear and components worth $432.94 million.

According to estimates of Council for Leather Exports (CLE) and NLDP, the total demand of footwear made in the country would touch 1,076 million pairs by 2000 AD. Of the total demand, leather footwear would account for 562 million pairs, plastic footwear for 90 million pairs and rubber and canvas shoes for 115 million pairs.

Experts feel that for the country to tap the growing global markets, the industry should spruce up its act and increase production capacity on a warfootingbasis.

The existing per annum production capacity of shoes in India is a mere 225 million pairs (100 million pairs of leather and 125 million pairs of non-leather shoes).

Despite 1998-99 being a sluggish year for Indian exports, exports of leather footwear in value terms to Italy, Belgium and France actually went up while exports to the US, the UK and Germany went down marginally. Russia was the only market where there was a more than 50 per cent decline in value of exports.

The fact that India ranks first among high livestock holding countries, with a total of 194 million cattle, 70 million buffaloes, 95 million goats and 40 million sheep, it has become an attractive destination for foreign investments. Moreover, existence of traditional skills in training, finishing and manufacturing downstream products coupled with low wage rates has added to the country's attractiveness.

During 1991-98, a total of 148 FDIs were approved in the leather sector. Of these 30 approvals were for technical collaborationwhile 118 approvals were of financial collaborations.

Despite a promising future for the leather footwear and components industry, the fact remains that if India has to make its mark in the international arena, it has to work hard to improve quality.