Budget 2025: Footwear Stocks Surge After Key Announcement

The Union Budget 2025-26 brought a sharp rally in footwear stocks as Finance Minister Nirmala Sitharaman introduced a new policy for the leather and footwear industry. The announcement, made during her budget speech in the Lok Sabha, included a dedicated scheme to improve productivity, boost quality, and support manufacturing in the sector.

Gains in Footwear Stocks

Following the announcement, multiple footwear stocks saw gains. Relaxo Footwears surged 8.97% to ₹598.75, while Liberty Shoes climbed 8% to ₹425.80. Bata India touched ₹1,335, rising nearly 3%. Other footwear companies, including Mirza International and Campus Activewear, recorded increases of 13.46% and 5.54%, respectively. Sreeleathers and Lehar Footwears also saw moderate gains.

Government’s Focus on Growth and Employment

The finance minister talked about how the scheme is expected to create employment for 22 lakh people. The sector is projected to reach a turnover of ₹4 lakh crore, with exports exceeding ₹1.1 lakh crore. 

The policy aims to support both leather and non-leather footwear manufacturing, including improving design capacity, component production, and machinery.

Market Reaction and Broader Implications

The footwear sector was among the notable beneficiaries of the budget, with stocks reacting positively. Meanwhile, the broader market saw volatility as the Sensex and Nifty 50 fluctuated during the speech. Historically, Budget Day trading sessions see movements within a 2-3% range, as investors react to various sectoral policies.

Budget Session and Other Announcements

This is Sitharaman’s 8th budget since 2019 and the second under the Modi government’s 3rd term. 

In addition to the footwear policy, the finance minister also introduced measures for infrastructure, banking, and manufacturing, while mentioning plans to develop India as a global toy manufacturing hub.

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