A enterprise delegation from Taiwan has been visiting footwear manufacturing companies in Tamil Nadu to perceive the work being performed in the State. The Taiwan Footwear Manufacturers Association (TFMA) has additionally signed an MoU with Guidance, which is the nodal company instrumental in bringing investments into the State for selling collaboration and development, taking a step in direction of fostering new partnerships.
The MoU was signed in the presence of Asha Ajith, Executive Director of Guidance, Yu Jui Pin, Chairman of TFMA, S. Krishnan Additional Chief Secretary, Industries, Investment Promotion and Commerce Department, and Richard C.L. Chen, Director General, Taipei Economic and Cultural Center.
According to the Taipei Economic and Cultural Center in Chennai, the Taiwanese shoe trade produces about 50% of the footwear and 90% of the high-value sneakers worldwide. The whole worth for world’s footwear market exceed over $2.5 trillion. Currently, their factories are primarily positioned in China and Southeast Asian international locations, forming full footwear producer clusters. Due to rising labour prices there, the Taiwanese shoe firms are exploring the opportunity of shifting their manufacturing base in India. If this takes off, Taiwanese footwear and elements firms can construct a footwear cluster in India, thereby decreasing its dependence on importing.
Tamil Nadu had a enormous presence in the footwear area. The State intends to attract extra investments in this sector. In August 2022, Chief Minister M.Okay. Stalin unveiled the Footwear and Leather Products Policy, 2022, by which it goals at attracting investments to the tune of ₹20,000 crore. The State authorities, in its coverage, talked about that it could be creating new non-leather footwear clusters, in the type of footwear parks of 30-50 acres, with plug-and-play services by its companies similar to SIPCOT/SIDCO and public-private partnerships.
More Taiwanese firms are shifting their manufacturing base to India. Statistics reveal that 116 Taiwanese firms have invested in India. Of these, 60% had invested in 5 southern States. Some of the well-known Taiwanese firms embody Foxconn, Foxlink, Winstron, Delta and footwear manufacturers Apache, Feng Tay, Lotus and Pegatron.
