Why Global Brands Are Turning to India for Footwear OEM/ODM: The Real Story Behind the Shift
Key Takeaways
Global brands are strategically shifting footwear manufacturing to India as traditional markets face rising costs and capacity constraints, creating new opportunities for cost-effective, high-quality production partnerships.
- China’s dominance is declining: Production costs rose 36% since 2015, while China’s global export share dropped from 63.8% to 62.2%, pushing brands to diversify manufacturing locations.
- India offers unbeatable cost advantages: Manufacturing costs range from Rs. 80-1,500 per pair with access to 20% of world’s cattle population, providing raw material advantages and skilled labor at competitive wages.
- Government support accelerates growth: Tamil Nadu’s ₹20,000 crore investment policy, production-linked incentives, and India-EU FTA eliminating 17% tariffs create favorable conditions for OEM/ODM partnerships.
- Diverse manufacturing capabilities: Indian manufacturers produce 2.5 billion pairs annually across all categories – from performance athletics to formal leather shoes – with BIS certification ensuring international quality standards.
- Major players are already investing: Taiwanese giants like Hong Fu (₹1,500 crore) and Pou Chen ($276 million) are establishing operations, while global brands including Nike, Adidas, and Tommy Hilfiger source from Indian manufacturers.
This shift represents more than cost savings – it’s about accessing a mature manufacturing ecosystem that combines traditional craftsmanship with modern technology, supported by favorable policies and infrastructure development. The global footwear industry stands at US$390.10 billion and is projected to reach US$503.83 billion by 2028. You might wonder why global brands are turning to India for footwear OEM/ODM partnerships at this critical growth phase. India is projected to become the second largest consumer market for footwear by 2030, yet it currently exports mainly low-value, unbranded shoes. Global brands such as Nike, Tommy Hilfiger, Calvin Klein, and Armani Exchange are now looking at India differently, especially as footwear imports decreased to $299.76 million in 2023 from $920.34 million in 2022.
This piece will help you find the real factors driving this move. Affordable yet high-quality footwear production is one reason. India’s variety of footwear styles and environmentally responsible approaches matter too. We’ll get into government policies and infrastructure developments. Over 45 percent of the country’s footwear exports originate from Tamil Nadu alone, and that’s worth understanding.
The Global Footwear Manufacturing Shift: Moving Beyond China
Rising Production Costs in Traditional Markets
China manufactures 13 billion pairs annually and holds 54% of global market share. The country faces mounting pressure from escalating commodity prices, rising wages and environmental concerns, though this dominance persists. These factors have pushed brands to rethink their manufacturing strategies, especially when you have production costs that continue climbing year over year.
The average export price of footwear rose from USD 8.83 per pair in 2015 to USD 11.98 in 2023. This marks a 36% increase. But China’s share of global exports declined from 63.8% in 2023 to 62.2% in 2024. The manufacturing landscape is shifting steadily.
Trade Tensions and Supply Chain Disruptions
Trade policies altered the map of sourcing decisions across the footwear sector. The United States sources 61.9% of shoe imports from China. This makes the industry vulnerable to tariff fluctuations. COVID-related border closures in 2020 exposed the risks of overreliance on a single country and prompted brands to vary their manufacturing bases.
Companies faced billions in additional costs. Nike projected around USD 1.00 billion in extra expenses from global tariffs. FDRA members saw tariff payments jump from USD 3.00 billion in 2024 to USD 6.20 billion in 2025. Brands accelerated their moves to alternative locations.
Southeast Asian Markets Reaching Capacity Limits
Vietnam ranks second in exports with 10.7%, followed by Indonesia at 4.1%. Vietnam processes 21.4% of U.S. shoe imports, while Indonesia handles 6.9%. But both markets face constraints.
Vietnam’s infrastructure is already overloaded with limited capacity and workforce availability. Indonesia doesn’t deal very well with additional volume as larger brands secure the best resources. Manufacturers in these countries raise prices due to increased leverage when demand moves away from traditional hubs.
India’s Emerging Position in the Global Supply Chain
India now accounts for 12.5% of global production and positions itself as a viable alternative. The country produces affordable yet high-quality footwear in a variety of styles, from performance athletics to formal leather shoes.
Foot On Shoes exemplifies this move. As an Indian OEM manufacturer, the company serves global brands that seek reliable production partnerships outside traditional markets. Their facilities blend competitive pricing with quality control standards that meet international requirements.
The manufacturer offers specialized capabilities across multiple footwear categories, from casual lifestyle shoes to technical sports footwear. This versatility attracts brands looking to unite their supply chains while maintaining product variety.
Why India Offers Affordable Yet High-Quality Footwear Manufacturing
Competitive Labor Costs Without Compromising Quality
Manufacturing wages in India remain a fraction of those in Western markets. This creates most important cost advantages for global brands. The country employs approximately 4.42 million people in the leather industry, with 55% of the workforce under 35 years of age. This young, skilled labor pool excels in intricate craftsmanship techniques like vegetable tanning and hand-stitching.
Average manufacturing costs range from Rs. 80-350 per pair for simple footwear to Rs. 400-1,500+ for casual shoes and sneakers. The availability of skilled artisans at competitive wages enables production of affordable yet high-quality footwear without sacrificing craftsmanship standards.
Access to Raw Materials and Leather Expertise
India’s livestock population provides unmatched raw material access. The country accounts for 20% of the world’s cattle and buffalo population and 11% of global goat and sheep stocks. This translates to 13% of worldwide leather production and positions India as the second-largest producer and consumer of leather footwear around the world.
The country has access to 21% of the world’s cattle and buffalo. This reduces dependency on imported materials and lowers transportation costs and production timelines. But India imports nearly 50% of its hide requirement, with ongoing efforts to improve domestic collection infrastructure.
Lower Infrastructure and Operational Costs
Operating expenses in India remain lower compared to European and Southeast Asian markets. Manufacturers benefit from affordable industrial spaces, reduced utility costs and domestic supply chains. The GST reform simplified tax structures, while manufacturing clusters enable component access without extensive logistics expenses.
Quality Control Standards and BIS Certification
BIS certification became mandatory for footwear manufacturers under Quality Control Orders effective August 1, 2024. Products must comply with Indian Standards and bear the ISI Mark. This certification will give material safety, sole adhesion strength and durability benchmarks. It prevents substandard imports and raises manufacturing standards across the sector.
Foot On Shoes operates within this framework as an Indian OEM manufacturer serving global brands. The company maintains BIS-compliant facilities while offering competitive pricing in a variety of footwear styles.
Their specialized capabilities span performance athletics to formal leather shoes. They combine traditional craftsmanship with modern quality systems that meet international requirements for brands seeking reliable partnerships outside traditional markets.
India's Manufacturing Capabilities for Diverse Range of Footwear Styles
India’s production of 2.5 billion pairs annually supports manufacturing in a variety of footwear categories, from athletic performance shoes to handcrafted leather formals.
Sports and Performance Footwear Production
Lakhani Footwear produces 55.5 million pairs of sports shoes per year and maintains a strong alliance with Adidas for athletic footwear supply. Manufacturers combine EVA, Phylon, PU, TPR, and PVC sole technologies to deliver cushioning, flexibility, and durability required for performance footwear.
Casual and Lifestyle Shoes Manufacturing
Mukluk Shoes operates with over 10 years of experience serving Nike, Puma, and Hrx. The company produces casual, semi-casual, and lifestyle footwear. Picaaso Footwear manages manufacturing cycles from design development through international logistics and supplies sneakers and casual shoes to Africa and the Middle East.
Formal and Leather Footwear Expertise
Liberty Shoes brings 65 years of shoemaking expertise. The company manufactures 50,000 pairs daily across formal styles and leather categories.
Specialized OEM/ODM Capabilities for Global Brands
Liberty’s state-of-the-art facilities deliver OEM manufacturing, while factories produce for Nike, Adidas, and Crocs. Indian suppliers offer customization from materials and stitching to packaging.
Technology Integration in Production Processes
AI-powered footwear production machinery enables faster, green manufacturing. Manufacturers utilize 3D printing, automated production, and AI-powered design tools, while smart automation optimizes material consumption and reduces waste.
Government Policies and Infrastructure Driving OEM/ODM Growth
Tamil Nadu’s Footwear and Leather Products Policy
Tamil Nadu accounts for 26% of national manufacturing output and 48% of exports. The state’s Footwear and Leather Products Policy 2022 wants to attract ₹20,000 crore in investments and create over two lakh jobs. Manufacturers receive turnover-based subsidies. Component industries outside clusters qualify for 10% fixed capital subsidy disbursed in annual installments.
Production-Linked Incentive Schemes
The Center is preparing a $1 billion package that targets the value chain from raw materials to finished products. This complete approach addresses domestic capacity gaps in producing key inputs largely imported from China.
Free Trade Agreements and Export Benefits
The India-EU FTA eliminates tariffs up to 17% on footwear and opens access to the $100 billion EU leather and footwear market. 70.4% of tariff lines covering 90.7% of India’s exports will have immediate duty elimination.
Skilled Labor Training Programs
Central Footwear Training Institute Chennai operates with advanced machinery and offers courses from three months to two years. BFDS provides government-supported skill development programs with job-oriented training and placement assistance.
Logistics and Export Infrastructure Development
Tamil Nadu develops non-leather footwear clusters spanning 30-50 acres with plug-and-play facilities through SIPCOT and public-private collaborations.
Major Taiwanese Manufacturers Setting Up Operations
Hong Fu Industrial Group invested ₹1,500 crore in Tamil Nadu. The company is projected to employ 25,000 workers by early 2026. Pou Chen pledged $276 million for non-leather footwear manufacturing over 12 years and will create 20,000 jobs.
Foot on Shoes operates as an Indian OEM manufacturer within this supportive policy ecosystem and serves global brands seeking reliable production partnerships. The company utilizes Tamil Nadu’s infrastructure advantages and skilled workforce to deliver affordable yet high-quality footwear in a variety of styles.
Their specialized capabilities combine government-supported training programs with modern manufacturing systems. This enables competitive pricing while meeting international quality standards for brands varying beyond traditional markets.
Conclusion
India’s footwear manufacturing sector provides global brands with an alternative to traditional markets. Competitive labor costs, raw material access, government incentives, and diverse production capabilities combine to position the country as a strategic OEM/ODM partner. Foot On Shoes exemplifies this chance as an Indian manufacturer that delivers affordable yet high-quality footwear across multiple categories. At the time you assess your supply chain options, India provides the cost advantages, quality standards, and infrastructure support that fit long-term sourcing strategies.
FAQs
- Which footwear brands manufacture their shoes in India?
Several global brands including Nike, Tommy Hilfiger, Calvin Klein, Armani Exchange, Adidas, Puma, Hrx, and Crocs have manufacturing partnerships with Indian footwear producers. Indian manufacturers like Liberty Shoes, Lakhani Footwear, and Mukluk Shoes serve these international brands through OEM/ODM arrangements. - Why are sneaker companies shifting production to Asian countries?
Companies moved production to Asia primarily to reduce manufacturing costs. Trade tensions and tariffs further accelerated this shift – Vietnam currently faces 20% tariffs on exports to the US market, while China faces 30% tariffs. This significant cost difference, combined with rising production expenses in China, has made other Asian countries like India and Vietnam more attractive manufacturing destinations. - What challenges is the Indian footwear industry currently facing?
The industry faces pressure from increased raw material prices and higher tax rates, which has led to concerns about reduced demand. The Confederation of Indian Footwear Industries anticipates potential underutilization of manufacturing capacity due to these factors. However, government initiatives like Production-Linked Incentive schemes and infrastructure development are helping address these challenges. - Which country produces the most shoes globally?
China remains the world’s largest shoe manufacturer, producing 13 billion pairs annually and holding 54% of the global market share. However, its dominance is gradually declining – from 63.8% in 2023 to 62.2% in 2024 – as brands diversify to other countries like India, Vietnam, and Indonesia due to rising costs and trade tensions. - What makes India competitive for footwear manufacturing compared to other countries?
India offers several competitive advantages: labor costs that are significantly lower than Western markets, access to 13% of global leather production due to its large livestock population, a skilled workforce of 4.42 million people in the leather industry, and government support through incentive schemes and free trade agreements. Manufacturing costs range from Rs. 80-1,500+ per pair depending on the footwear type, making it an affordable yet quality-focused alternative.
Ready to Create With Us?
Let’s discuss how Foot on Shoes can bring speed, and scale to your next collection.
Join Our Exclusive Community
Subscribe to our newsletter for the latest collections and exclusive offers tailored for you.
By clicking Subscribe, you agree to our
Terms and Conditions.