In August 2022, the Tamil Nadu government unveiled the ‘Tamil Nadu Footwear and Leather Products Policy 2022’ and signed five Memoranda of Understanding (MoUs) totaling ₹2,250 crore in investments for the footwear and leather sector. These agreements are projected to generate approximately 37,450 jobs, aligning with the policy’s goal to attract ₹20,000 crore investments and create 200,000 jobs by 2025.
The MoUs were signed with the following companies:
- KICL SEEMS
- Wagon International
- KICK
- Wallaroo
- KICL (footwear cluster)
These collaborations aim to enhance Tamil Nadu’s position as a leading destination for footwear and leather product manufacturing in Asia.
Additionally, Chief Minister M.K. Stalin laid the foundation for a ₹400 crore mega footwear manufacturing park in Panapakkam, Ranipet district. This facility is expected to further boost the state’s manufacturing capabilities and employment opportunities in the sector.
The ‘Tamil Nadu Footwear and Leather Products Policy 2022’ focuses on:
- Developing existing leather manufacturing clusters to cater to both domestic and export markets.
- Providing incentives for the establishment of design studios and related infrastructure.
- Enhancing the non-leather footwear and component ecosystem by supporting ancillary units and encouraging exports.
The policy also introduces a subsidy skilling program targeting women, transgender persons, people with disabilities, and individuals from the SC/ST community, offering ₹6,000 monthly for six months to support skill development.
Tamil Nadu has emerged as a significant player in the footwear industry, contributing 26% to national manufacturing output and 48% to national exports. The state is associated with several global fashion brands, including Louis Vuitton, Giorgio Armani, Gucci, Clarks, and Prada, through manufacturing or sourcing raw materials.
The state’s commitment to sustainable practices is evident, as Tamil Nadu is the only state in India to implement Zero Liquid Discharge in tanneries, reflecting its dedication to environmental responsibility.
These initiatives are part of Tamil Nadu’s broader strategy to achieve a $1 trillion economy by 2030, focusing on attracting capital-intensive high-tech and employment-intensive industries.
