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Shares of footwear and leather companies surged on Saturday, February 1, 2025, following Finance Minister Nirmala Sitharaman’s announcement of a new policy aimed at enhancing productivity, quality, and competitiveness in these sectors.
Government’s New Policy for Footwear and Leather Industry
During the Budget 2025 speech, Finance Minister Nirmala Sitharaman revealed that the Narendra Modi-led government is set to introduce a new policy for the footwear and leather sectors.
“To improve productivity, quality, and competitiveness in India’s footwear and leather industries, a dedicated product scheme will be implemented. This initiative is expected to create employment for 2.2 million people, generate a turnover of ₹4 trillion, and achieve exports exceeding ₹1.1 trillion,” said Sitharaman.
Additionally, she proposed a full exemption of Basic Customs Duty (BCD) on wet blue leather, a move aimed at reducing production costs and boosting exports.
Stock Market Reaction: Footwear and Leather Stocks Rally
Following the announcement, shares of footwear and leather companies saw significant gains during a special trading session held to reflect the impact of Budget 2025 proposals.
Top Gainers in Footwear Sector
Relaxo Footwear: Up 8.8% to ₹598.5 per share
Liberty Shoes: Increased 7.4% to ₹395 per share
Campus Activewear: Gained 6.12%, reaching ₹289.3 per share
Bata India: Climbed 2.8% to ₹1,288.49 per share
Metro Brands: Rose 2.6% to ₹1,216.9 per share
Leather Industry Stocks Also Surge
Mirza International: Soared 16% to ₹36.98 per share
Haryana Leather Chemicals: Jumped 14.7% to ₹84.79 per share
Super Tannery: Gained 14.12%, trading at ₹11.9 per share
AKI India: Increased 5% to ₹10.52 per share
Shares of Mirza International Ltd, gained as much as 15%, along with other footwear stocks like Relax Footwear Ltd. Data India Ltd. after Finance Minister Nirmala Sitharaman’s announcements during her Union Budget speech 2025 in th Lok Sabha, on Saturday, February 1
The Finance Minister said that the India will plan a new policy for leather and other footwear sectors.
The focus scheme for the footwear and leather sector will generate employment for 22 lakh people, generate investme worth over 4 lakh crore and exports worth 11 lakh crore, the minister in her Budget speech.
For financial year 2024, Mirza International reported overall revenue of 2030 crore, of which 515 crore came from export.
“The Company is looking to get upward movement from last achieved export turnover subject to global economic conditions,” Mirza International’s annual report for financial year 2004 said, Shares of Mirza International are trading 14.2% higher at ES6
Shares of Liberty Shoes are trading 65% higher at 1421.
Shares of Relaxo Footwear are trading 4% higher at 25735.
Historic Budget Presentation by Sitharaman
Finance Minister Nirmala Sitharaman is delivering her eighth Union Budget, marking the highest number of budget presentations by any finance minister in independent India’s history.
The stock markets remain volatile as investors react to the government’s economic proposals, with a special trading session held to account for the Budget 2025 announcements.
