India’s footwear industry will be worth about INR387bn (US$7.85bn) by 2015, nearly doubling its current estimated value of INR220bn, according to industry body ASSOCHAM.

In its report, Indian Footwear Industry: An Analysis, ASSOCHAM – the Associated Chambers of Commerce and Industry of India – said the industry currently produces nearly 3bn pairs of shoes a year, exporting 10% of this and accounting for about 15% of global production.

“The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class, which contributes about 45% of overall footwear market, making India the second largest global producer of footwear across varied segments after China,” said D S Rawat, ASSOCHAM secretary general.

“Low cost of production, abundant availability of raw material, ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic features that sets apart the Indian footwear market.”

The report says that premium footwear brands are making inroads into India’s non-urban market, which has “huge potential” and accounts for about 55% of the total industry.

Meanwhile, the report estimates that the global footwear market will grow at a CAGR of about 5%, reaching about INR12.34trn by 2015.