Trade pacts with 38 nations to drive India’s leather exports: RK Juneja

The gradual implementation of strategic Free Trade Agreements (FTAs) is expected to provide incremental growth opportunities for India's leather and footwear sector.  

“Currently, despite its robust domestic manufacturing capabilities, India’s footprint in the global leather arena remains modest. The country accounts for roughly $4.75 to $4.83 billion in exports, representing around 1% share of the estimated $500 billion global market,” said Ramesh Kumar Juneja, Chairman, India’s Council for Leather Exports (CLE).

However, trade agreements with key economic partners, including the United Kingdom, New Zealand, the European Union and ongoing negotiations with nations like the United States, are set to fundamentally alter this dynamic by dismantling long-standing trade barriers.

Removing Tariffs for a Level Playing Field

“For years, Indian leather exporters have faced steep competition from nations like Bangladesh and Vietnam. These competing countries have traditionally held a distinct competitive edge, largely due to preferential tariff treatments and zero-duty access to major consumer markets,” said Juneja.

The execution of India's newer trade agreements is already yielding results. A clear precedent was set by the operationalization of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) on June 1, which successfully eliminated a 5% import duty across Muscat for Indian leather and textiles. This template is designed to expand globally.

“The implementation of India’s new FTAs like the one with the UK will effectively eliminate these disadvantages. Under the UK-India FTA, the complete removal of duties will finally afford Indian manufacturers a level playing field,” Juneja added. “With tariff elimination, Indian leather goods can compete purely on quality, craftsmanship, and pricing parity, paving the way for a substantial surge in export volumes to the British market and across 38 associated trade-beneficiary nations.”

Securing zero-duty access directly addresses historic structural imbalances, enabling Indian enterprises to compete on an equal footing with global suppliers who have long enjoyed preferential market access.

Execution, Diversification, Capital Inflow

While the signing of these pacts marks a diplomatic success, the true catalyst for economic expansion lies in their swift operationalization. With major agreements slated for full implementation by the end of the year, the Ministry of Commerce and Industry, along with apex industry bodies, is shifting focus toward execution, regulatory stability, and market diversification.

For India’s leather and footwear industry, the long-term regulatory certainty of zero-tariff access is projected to bring a fresh wave of capital investment into India’s domestic leather tanneries and footwear manufacturing hubs.

“To maximize this opportunity, our strategy centres on diversifying into new markets and increasing international outreach. In coordination with the Export Promotion Council, we are prioritizing trade exhibitions, global fairs, and direct buyer-seller meetings to secure new business overseas," Juneja added.

To capitalize on zero-duty access, the Indian leather sector is executing a structured outreach strategy:

• Targeted Trade Missions: Organizing dedicated trade delegations to showcase the premium quality and compliance standards of Indian leather items.

• Exhibitions and B2B Meetings: Planning high-profile exhibitions, particularly in the UK and New Zealand, to directly connect Indian suppliers with global buyers, retailers, and investors.

• Exploring New Frontiers: Utilizing FTAs to scout fresh investment and untapped export channels, reducing reliance on traditional markets.

Driving Employment and Industrial Growth

The benefits of these trade agreements extend far beyond international shipping docks. As a highly labour-intensive sector, the leather and footwear industry is uniquely positioned to maximize the domestic socioeconomic benefits of expanded trade. These FTAs will deliver significant advantages directly to labour-intensive industries, supporting large-scale job creation, securing new industrial investments, and giving a significant boost to employment within the leather manufacturing sector by enhancing overall global competitiveness.

“The anticipated surge in international orders will directly stimulate India's domestic industrial sector, driving factory capacity utilization, incentivizing technology adoption, and generating vital employment opportunities across the leather supply chain,” said Juneja.

As negotiations progress favourably with other major economies, including the US, India is strategically positioning its leather and footwear sector not just as a regional participant, but as a dominant global powerhouse. By converting duty-free access into active market share, the industry is well on its way to expanding far beyond its current global footprint.