Asian footwear manufacturers are reviving plans to set up non-leather footwear factories in India, targeting exports to the American market following a reduction in tariffs on Indian goods. According to reports from The Times of India, several investment proposals that had slowed over the past year after high tariffs were imposed by US President Donald Trump are now regaining momentum. Close to a dozen overseas companies are exploring new manufacturing units in India, with Taiwan-based Tienkang and Paiho, and Vietnam-based Chin Chen Fuh Vietnam Mold Manufacturing among the companies exploring new facilities. However, this investment surge comes amid broader scrutiny of India's manufacturing incentives by global trading partners.
Global brands with significant exposure to the US market — including Nike, Adidas, Crocs, Puma, Skechers and Asics — already manufacture footwear in India for exports, with many now evaluating capacity expansion following the tariff revision. As reported by The Times of India, industry representatives said improving export visibility to the US — the world's largest footwear market — is driving fresh investments and capacity expansion. The companies had earlier deferred India plans but are now keen to launch their projects following the tariff reduction. This expansion occurs as India faces mounting pressure from key trading partners over its manufacturing incentive programs.
Rafiq Ahmed, Chairman of Kothari Industrial Corporation, a leading non-leather footwear manufacturer producing Crocs-branded footwear, said the US had been the company's largest market before tariff hikes last year disrupted shipments. According to The Times of India, following the tariff impact, the company diversified into markets such as South Korea, Europe and Canada. However, with tariff revisions leading to a revival in orders, the company is now refocusing on the US market. Israr Ahmed, MD of Farida Group, said the company has been manufacturing New Balance shoes in Tamil Nadu through a joint venture with a Taiwan-based contract manufacturer.
The proposed investments are expected to extend beyond footwear assembly, helping create a broader manufacturing ecosystem covering machinery, shoelaces, webbing and packaging solutions. As reported by The Times of India, global contract manufacturers are accelerating partnerships with Indian firms to establish new facilities amid rising demand. The revival in US orders is driving contract manufacturers to already begin ramping up production to meet renewed US orders, with several firms from Taiwan, Vietnam, China and Cambodia that had earlier deferred India plans now showing renewed interest in establishing manufacturing facilities in India.
India's manufacturing ambitions face mounting scrutiny from the US and China, who argue that the country's use of subsidies breaches global trade norms. The US imposed preliminary duties of 126% on solar imports from India after determining unfair subsidization, while China has challenged India's production-linked incentive scheme worth ₹1.91 trillion ($21 billion) across 14 sectors. India's Ministry of Commerce and Industry declined to comment, but officials said the country would strongly defend its incentive programs, arguing they fully comply with WTO rules. Despite this pressure, Biswajit Dhar, a New Delhi-based trade economist, noted that without schemes like PLI, manufacturing revival appears difficult, as manufacturing currently makes up about 17% of GDP compared to the goal of 25%.
