May 17, 2020
German footwear brand, Von Wellx, is collaborating with Agra-based Iatric Industries Pvt Ltd in increasing production capacity
The partnership is anticipated to create over 10,000 direct and indirect jobs in the Indian leather sector, one of the world’s largest
Indian Government is adopting strategies to attract more FDI into India as the pandemic creates challenges and opportunities globally
India’s growing leather sector is predicted to touch US$9 billion by 2021, with scope for more manufacturing, export opportunities
An increasing number of foreign companies are looking towards India as a manufacturing and export hub driven by favorable policies and regulations as well as high-margin and high-quality capabilities. In line with this, the German footwear brand, Von Wellx, announced plans on May 17 to set up a manufacturing base in Uttar Pradesh, India. According to media reports, citing official sources, the German company is increasing its production capacity in collaboration with Agra-based Iatric Industries Pvt Ltd, helping create over 10,000 direct and indirect jobs through the partnership.
While the COVID-19 crisis continues to disrupt the global supply chain, India is taking steps to incentivise foreign investment in order to tap into the opportunities arising out of the pandemic. Prime Minister Shri Narendra Modi is prioritising strategies to attract foreign investment from companies facing challenges in global markets, with the German orthopedic footwear brand being the latest company shifting production to India, catering to its over 100 million customers across 80 countries.
Accounting for about 13 per cent of the world’s leather production, India is the second-largest producer of leather garments and footwear in the world. To enable more manufacturing and export opportunities, the Government is driving priority sector lending, improved promotions, and infrastructure.
Currently, India’s leather industry contributes less than 1 per cent to the country’s GDP despite being a world leader in leather production and providing leather to trade partners around the world. This showcases the immense potential for growth and development, as estimates predict the leather sector to touch US$ 9 billion by 2021. Meanwhile, the Government has allowed 100 per cent FDI into the country along with rationalisation of export duty on raw and semi-finished leather goods.