RK Gupta Director Finance, Bata India Ltd.

Communication feature

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How was the year 2019 for the footwear market on the whole? What can we expect in 2020?

The footwear market in India is witnessing an upsurge due to the growing demand for trendy and comfortable footwear among the country’s young population. According to a recent report, India is the fastest growing footwear market among the top 10 markets in the world. The footwear industry in India has immense growth potential. The government has been pursuing the cause of ‘Make in India’ with vigour, and they have been regularly handing out tax incentives. Last year, the government allowed 100% FDI in the leather sector to encourage manufacturing inside the country.

Further, to promote domestic production, the government has announced increase in import duty on footwear. Since the manufacturing process in the footwear industry is mostly concentrated in MSMEs, these initiatives undertaken by the government will certainly boost the overall growth of the industry. Footwear industry provides huge employment opportunities to various sections of the society, hence the growth of the industry will automatically result in the aggregate growth and development of the country.

We have great expectations from the year 2020 as well. As the industry is expanding, the tastes and preferences of the consumers are constantly and rapidly changing. The fashion industry in general has undergone a revolution because of increased disposable income in the hands of consumers who are a lot more enlightened. It has become imperative for us, like for all the other players in the market, to keep coming up with newer and more innovative products to lure the customers, as that will help set us apart from our competition.

What are the key risks facing Indian economy in your view?