Economic Survey spotlights Tamil Nadu’s efforts to foster footwear manufacturing and education at the doorstep

Tamil Nadu's Economic Survey highlights strategic initiatives in footwear manufacturing and innovative education programs, attracting investors and fostering growth.

The Economic Survey 2024-25, tabled in Parliament on Friday by Union Finance Minister Nirmala Sitharaman, highlights the Tamil Nadu government’s strategic initiatives to foster footwear manufacturing and Illam Thedi Kalvi (education at the doorstep).

“Tamil Nadu is a leader in the traditional leather sector and now championing the growth of non-leather footwear. The State contributes a 38% share to India’s footwear and leather products output and accounts for 47% of India’s total leather export. This sector generates more than 2 lakh jobs,” the survey says.

It also lists the initiatives taken by the State in the recent years to attract large footwear manufacturers. Among the measures is the development of industrial estates in rural areas to ensure access to a ready workforce, especially women.

The Economic Survey points out that the efforts have helped to attract foreign investors, including Feng Tey of Taiwan that has set up contract manufacturing for Nike. The State government has identified land in districts like Madurai and Sivaganga for potential footwear manufacturers, it notes.

The State’s investment promotion agency, Guidance, took concerted measures. It liaised with Taiwanese agencies to strengthen ties with potential investors in the footwear sector. Guidance established contacts with major contract manufacturers of Nike like Pou Chen, Hong Fu, Taekwang and Changshin, positioning Tamil Nadu as an attractive destination, according to the survey.

The incentive package system offered in Tamil Nadu is flexible and can be tailored to the needs of each investor, the survey says. The State offers a range of incentives such as capital subsidies, payroll subsidies, and land cost subsidies. The State has launched a dedicated Footwear and Leather Products Policy, 2022, to develop a comprehensive ecosystem that supports large manufacturers as well as smaller enterprises, it notes.

The Economic Survey describes Tamil Nadu’s Illam Thedi Kalvi (education at the doorstep) as an innovation in public education. The scheme was launched to bridge the gap in education caused by the COVID-19 pandemic and the digital divide. The initiative focuses on education through physical methods, it says.