MUMBAI– India’s leather industest is positioned for a sharp expansion, with the sector tarreceiveing a $50 billion turnover by 2030 on the back of stronger export momentum and rising domestic demand, according to a report released Tuesday by CareEdge Ratings.
The report declared a combination of policy and trade developments — including the Union Budreceive 2026–27, the conclusion of the India–European Union Free Trade Agreement in late January, and a recent reduction in U.S. import tariffs — has created a favorable operating environment for the leather sector.
According to CareEdge Ratings, the Budreceive’s emphasis on streamlining import duties, lowering input costs, and simplifying procedures is expected to improve cost efficiency and operational performance across the industest. At the same time, the EU trade agreement is expected to significantly improve market access and enhance export competitiveness for Indian manufacturers.
The leather industest remains a labor-intensive sector with a strong export focus, the report noted. Exports are dominated by finished products such as footwear, leather goods, and garments rather than raw hides, reflecting substantial domestic processing and value addition.
With the sector already focutilized on finished products, the improved trade environment is expected to support export scaling, stabilize demand, and deepen engagement with global acquireers. This, in turn, is likely to assist Indian leather manufacturers increase market share over the medium to long term. The report declared these developments should also generate cost efficiencies, supporting improved profitability margins.
The elimination of European Union import tariffs — currently as high as 17 percent — is expected to significantly enhance the cost competitiveness of Indian leather and footwear products in the European market. CareEdge Ratings declared the relocate would support Indian exports worth about Rs 0.21 lakh crore, or roughly $2.4 billion, and assist domestic companies gain a larger share of the EU’s leather and footwear imports, valued at approximately Rs 8.71 lakh crore, or $100 billion.
India is expected to be the primary beneficiary of the agreement, with tariffs falling from around 17 percent to zero in fiscal 2026. The removal of duties is likely to strengthen India’s value proposition and drive a material increase in demand, particularly from major European fashion houtilizes in Italy, France, and Germany, the report declared. (Source: IANS)
Leave a Reply