The new GST rates for products below Rs 1,000 and the rise in raw material costs has caused the prices of finished footwear to rise by 20-50 per cent across categories. As per the Confederation of Indian Footwear Industries (CIFT), from January this year, GST rates for footwear below Rs 1,000 surged from the earlier 5 to 12 per cent. On the other hand, GST rates on products priced above Rs 1,000 have remained unchanged at 18 per cent. This resulted in some wholesalers going on strike as they were unable to absorb the increased costs, says V Noushad, Managing Director, Walkaroo and Vice-President, CIFI.

Naushad urged the government to reduce dependence on China by boosting local production of components, machines and designs in the non-leather category. The category accounts for 85 per cent of the industry’s sales. The association has also opposed the proposal to introduce new Bureau of Indian Standards norms as it may affect around 3 million people dependent on the industry.