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Leather exports may decline by 7% to 8% in FY26: ILPA
Oct-27-2025

The industry body Indian Leather Products Association (ILPA) has indicated that the exports of leather and leather goods from India may decline by 7% to 8% in the fiscal year 2025-26 due to the impact of steep US tariffs. However, it added that the industry has showed resilience as the fast-growing domestic market provides buffer against tariff impact and stabilise the overall turnover. Further, industry leaders are hopeful that robust growth in the domestic market will help offset losses, and could even lead to an overall gain in 2026-27. The total leather exports from India stood at $5.7 billion in the fiscal last year.

ILPA highlighted that the current global environment - marked by the lingering effects of COVID-19, the Russia-Ukraine war, logistical disruptions through the Suez Canal, and new US tariff measures - has dampened export prospects. Nevertheless, it noted that the strong domestic economy, supported by one of the world’s fastest growth rates and an expanding base of affluent consumers, has been driving local demand. Besides, the sector’s pivot toward the domestic market has been aided by policy support. The central government has signed free trade agreements with Australia, UK, UAE, and Japan, and negotiations are underway with the European Union. At the state level, exporters have benefited from initiatives that provide platforms for local retail sales.

In spite of cumulative US tariffs of up to 58%, including reciprocal and penal tariffs, the industry body said that American importers continue to place strong orders with Kolkata-based exporters. It also noted that the continued trust is attributed to the quality and sustainability of Indian leather goods, which remain much preferred over those made in China or Vietnam.

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