The country, second largest manufacturer of shoes worldwide behind China, has lifted import tariffs on this product from 20% to 25%. The decision also affects taxes on precious stones and fuel.
India raises import tariffs on footwear. The country’s Government has establish new taxes on foreign transaction in nineteen product categories, among them shoes. The mease has been adopted with the aim of reducing trade and current account deficits and slowing down the rupee’s depreciation, which has lost 13% of its value against the US dollar.
India understands that it’s a package of “non-essential” products, which also includes precious stones or fuel. The Asian country is the second largest footwear manufacturer worldwide, just behind China. Now, after the decision taken by its Government, import tariffs for shoes jump from 20% to 25%.
This measure could transform India’s consumption market. On one hand, the increase on tariffs could benefit big local industrial groups like Bata India or Liberty Shoes. On the other hand, the action could provoke a rise on prices in goods from foreign brands like Adidas, Reebok, Nike, Puma, Skechers, Crocs, Aldo, Hush Puppies, Clarks or Steve Madden.