Leather World News

Headline: Indian leather sector eyes export surge to US amid shifting trade dynamics

Headline: Indian leather sector eyes export surge to US amid shifting trade dynamics

LW Desk

April 5, 2025

Driven by evolving trade policies in Washington, India’s leather and footwear industry is positioned to significantly expand its footprint in the American market. Government statistics reveal that between April 2024 and February 2025, India’s aggregate leather exports reached $4.1 billion, with the US accounting for $870 million of that total.

Industry insiders believe that the implementation of reciprocal tariffs by the US offers a strategic opening for Indian manufacturers to capture a larger portion of the world's premier consumer market. Official data confirms that during the eleven-month period ending in February 2025, the US remained a key pillar of India’s $4.1 billion leather export economy, receiving nearly $870 million worth of goods.

Israr Ahmed, representing the Chennai-based Farida Group and a former Vice-President of FIEO, noted that India currently holds a competitive edge. This is largely because major rivals, including China, Vietnam, and Cambodia, are facing tariff brackets at least 20 per cent steeper than those applied to Indian shipments. Ahmed cautioned, however, that this window of opportunity is likely temporary. He expects these competing nations to negotiate their rates down toward baseline levels within the next six to nine months.

Sanjay Leekha, Chairman of the Council for Leather Exports (CLE), emphasized that the industry must act swiftly to capitalize on this opening. He urged exporters to prioritize both high-quality standards and cost-efficiency to solidify their presence in the US.

To facilitate this growth, the CLE, in coordination with the Department of Commerce, is rolling out several promotional strategies. These include the organization of dedicated Buyer-Seller Meets and a ramped-up presence at major US-based international trade exhibitions.

Product-wise performance data for the April 2024–February 2025 period shows that footwear (both leather and non-leather) led the sector with $2.1 billion in exports. This was followed by leather accessories at $1.1 billion and finished leather at $360 million.

While the US remains the primary destination for Indian leather, other key markets include Germany ($445 million), the UK ($320 million), Italy ($255 million), and France ($210 million).

The leather industry remains a vital pillar of the Indian manufacturing landscape, providing livelihoods for approximately 4.42 million people, many from marginalized communities, while continuing to serve as a major source of foreign exchange.

 

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