The Department for Promotion of Industry and Internal Trade (DPIIT) has mandated Bureau of Indian Standards (BIS) certification for 27 types of footwear products under the new Quality Control Orders (QCOs), effective from August 1, 2024. While the move aims to enhance product safety and support domestic manufacturing, the footwear sector is facing severe challenges due to delays in BIS certification, especially for foreign manufacturing units. This has disrupted the import of stocks and threatens business continuity for foreign brands in India.

The footwear industry is a major employment generator, with around four million workers and the potential to create up to ten million jobs. The sector’s job creation capabilities are vast, with 250 jobs generated for every Rs 1 crore invested. However, delays in obtaining BIS certification are stalling imports and hurting retail jobs. Brands reliant on imports, such as mono-brand and multi-brand stores, are particularly vulnerable. With reduced product availability, retailers may face store closures, and employees in sales, supply chain management, and back-office roles could face layoffs.

Moreover, logistics and distribution jobs, as well as domestic contract manufacturing roles, may also be impacted if foreign brands halt operations in India. To mitigate this risk, the government may consider extending the BIS certification deadline or allow provisional permits for companies waiting for certification. This would help stabilize the sector and prevent significant job losses while the certification process is streamlined.

“Footwear is a high employment generating sector. Estimates suggest that the sector employs around four million workers, potentially reaching ten million. The sector is believed to generate 250 jobs for every investment of Rs 1 crore. Furthermore, for every 1,000 pairs of footwear produced and sold in India daily, the sector can create 425 jobs spanning manufacturing, allied industries, and retail. This highlights the imperative of fostering the growth of India’s footwear industry,” says Prof Viswanath Pingali, Faculty member of Economics, Indian Institute of Management Ahmedabad.

While the QCOs aim to ensure quality, addressing the compliance delays is critical to protecting jobs and ensuring the sector’s growth.

Vinod Kumar, President of India SME Forum, says, “It is not only retail jobs which could be axed. Delays in importing footwear are also likely to affect logistics and distribution jobs, especially in companies that handle imports for large international brands and provide warehousing, and transportation, among other related services. Similarly, even manufacturing jobs could be impacted, if foreign brands cease to continue their India operations, thereby leaving their domestic contract manufacturers in a lurch.”