Agra accounts for 28% of India’s footwear exports, according to the Agra Footwear Manufacturers & Exporters Chamber, and the city ships shoes worth ₹3,000–4,000 crore annually, with key markets including the US and Europe.
For an industry that has defined the city for generations, the last few months have been especially challenging, first because of US tariffs, and now, due to the deepening impact of the West Asia conflict on supply chains, raw material costs, and trade routes.
The West Asia tensions have sent prices of petrochemical-derived raw materials sharply higher. For shoe manufacturers, who rely heavily on materials like TPR (thermoplastic rubber), PU (polyurethane), and adhesives for soles, the impact has been severe.
Gopal Gupta, Founder & CEO of Gupta HC Overseas and President of the Agra Footwear Manufacturers & Exporters Chamber, says, “Raw material costs have risen by nearly 60%. These materials make up about 35% of the product cost. This price rise is swallowing our profits and margins.”
Export orders are usually locked in three to four months in advance. This leaves manufacturers with little room to pass on rising costs, and absorbing a 25-30% increase in the price of almost every raw material is proving impossible.
Ansh Kohli, Partner at Karam Udyog, says, “Prices we committed were according to the old raw material prices and now this 25-30% shock, we being the factory have to absorb. Just to maintain a relationship and to complete what we have committed.”
Kohli points to an uncomfortable competitive reality: the primary reason European brands source footwear from India instead of manufacturing locally is cost. “If we cannot beat the European factories at giving a less cost-priced shoe, there is no point why he would wait 30–50 days to get his shoes sent to his warehouse,” he says. “He would just pay the same cost and get delivery within days. We cannot lose that edge,” Kohli adds.
It is not just rising costs, supply chain disruptions are adding to the pressure as well. With shipping routes severely affected, Gupta says containers that earlier cost $500-700 are now unavailable even at $2,000. This has also disrupted delivery timelines. “What we were supposed to get in 20-25 days, now there is no confirmation from suppliers even after 50 days or 60 days and we are always running on a timeline,” says Kohli.
Global business travel has also taken a hit, with airfares rising sharply since the conflict began. For the shoe industry, which relies on in-person visits from foreign buyers, this has become another major pressure point.
“Our clients’ designers and buyers would come here to finalise products, plan deployment for next year, and do sampling. They aren’t coming now, so we have to go there and that’s an unnecessary load on the industry,” Gupta says.
Industry estimates suggest exports are already down 15%. Players warn that even if the conflict eases quickly, recovery could take at least one season.
Exporters are urging the government to provide targeted relief such as incentives for R&D into alternatives to petrochemical products and revisions to the ₹50 lakh cap on interest subvention for manufacturing. They are also pushing for deeper MSME support scheme announced to offset rising freight and insurance costs.
The shoe industry that grew in the lanes surrounding the Taj Mahal that continues to draw tourists from across the world.
However, the shoemakers who live in its shadow fear they are in danger of being overlooked.
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(Edited by : Tenzin Norzom)
