India-US Trade Deal a win-win for leather and footwear sector: CLE

The Council for Leather Exports (CLE) has welcomed the recently announced India-US trade deal, characterizing it as a ‘win-win’ situation that provides vital relief to a sector facing significant global headwinds.

Under the interim trade pact, the US will reduce import duties on several Indian goods, specifically targeting labour-intensive sectors like leather and footwear. According to a joint statement, the US has removed a punitive 25 per cent additional duty, with reciprocal tariffs expected to be reduced to 18 per cent shortly. This move aims to rectify the impact of steep 50 per cent tariffs imposed by the US in August 2025.

"With the India–US trade deal now in place, India stands at par with its global competitors, restoring a level playing field for Indian exporters."

-         Ramesh Kumar Juneja, Chairman, The Council for Leather Exports, (Southern Region)

Ramesh Kumar Juneja, Chairman, The Council for Leather Exports, (Southern Region) noted that the deal restores a level playing field. He pointed out that between May and October 2025, the US concluded multiple trade agreements offering reciprocal tariff arrangements to competing exporting nations — 10 per cent to the UK, 15 per cent to the EU and Japan, 19 per cent to Indonesia, Malaysia, and Bangladesh and 20 per cent to Vietnam. "With the India–US trade deal now in place, India stands at par with its global competitors, restoring a level playing field for Indian exporters," Juneja added.

The EU and US are critical pillars for the industry, accounting for nearly 66 per cent of India's leather and footwear exports (43 per cent to the EU and 23 per cent to the US). Juneja predicts the deal will help increase exports by approximately 30 per cent in the first year of implementation. Exports to the US currently stand at roughly Rs 15,000 crore, supporting a workforce of 42 lakh people. India exported over $1.2 billion in leather products to the US last year. Juneja added, "This trade deal will help us at least maintain exports at last year's level, despite global uncertainties. If India is able to conclude the agreement at zero reciprocal tariffs, exports to the US market could double within the next one to two years."

“The agreement has emerged as a hope for the industry. The reduction of tariffs has provided big relief to traders. It will help in reviving the leather industry.”

- Asad Iraqi, Chairman of CLE (Central Region)

Industry leaders underlined that the deal provides hope and stability following a period where leather and footwear exports dipped 0.23 per cent to USD 3.3 billion during April-December 2025-26. Asad Iraqi, Chairman of CLE (Central Region), stated that the reduction of tariffs has provided big relief to traders. Welcoming the deal, Iraqi said it will help in reviving the leather industry. He also thanked Prime Minister Narendra Modi, noting that the agreement "has emerged as a hope for the industry."

Underlining the timing, Ramesh Kumar Juneja said, “The twin trade agreements with the European Union and the United States provide much-needed stability and confidence to exporters at a time when global trade conditions have remained highly volatile." He added that since September 2025, exporters have faced severe headwinds due to geopolitical changes and energy import pressures, forcing them to operate on unsustainably thin margins.

While the focus remains on leather, the deal provides a broader fillip to textiles and apparel. Apparel Export Promotion Council (AEPC) Chairman A Sakthivel commented that the tariff eliminations “will greatly strengthen the global competitiveness of the Indian textiles and apparel sector."

The deal follows the conclusion of a free trade pact with the European Union last month, which is expected to be implemented later this year, collectively strengthening India's export ecosystem.