The Indian footwear industry is likely to reach about Rs 38,700 crore by 2015 from the current level of about Rs 22,000 crore, according to an recent study conducted conducted by industry body ASSOCHAM.

Growing at a compound annual growth rate (CAGR) of about 15 percent the footwear sector is likely to reach that level, said the study titled 'Indian Footwear Industry: An Analysis'. It added that booming middle class, and rising demand from tier II, III cities and rural markets has spurred footwear retailing in the country.

"Low cost of production, abundant availability of raw material, ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic features that sets apart the Indian footwear market," ASSOCHAM secretary general D.S. Rawat said while releasing the findings.

“The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class which contributes about 45 per cent of overall footwear market making India the second largest global producer of footwear across varied segments after China," he added.

The study reveals that the global footwear market which is growing at a CAGR of about five per cent is currently estimated at about Rs 10.15 lakh crore is likely to reach Rs 12.34 lakh crore by 2015.

India produces nearly 300 crore pairs of footwear annually, exports over 10 per cent and accounts for about 15 per cent of annual global footwear production which is over 2,000 crore.

Nearly 70 per cent of the labour-intensive footwear industry in India is in the unorganised sector and employs about 15 lakh people majority of whom are rural artisans, cottage and household units, while the organised sector accounts for remaining 30 per cent and employs over five lakh people.

Indian footwear market is dominated by men’s segment which accounts for about 55 per cent followed by ladies’ and kids’ segement which account for about 30 per cent and 15 per cent respectively, the ASSOCHAM study said.