Leather exporters eye new markets, domestic demand to offset US tariffs

Exporters expect a 5-8% drop in shipments in FY26 due to higher US tariffs but say strong domestic demand and FTAs will help cushion the impact

Indian leather and leather goods exporters are expecting a 5–8 per cent drop in shipments in FY26 due to higher US tariffs but are banking on new markets and strong domestic demand to cushion the impact.

 

Export decline likely, but domestic demand remains strong 

Rajarshi Dey, Vice-President of the Indian Leather Products Association (ILPA), noted that while export volumes were likely to decline by 5–8 per cent, companies’ turnover may not fall as much because of captive demand.

 

Arjun Kulkarni, President of ILPA, also said that domestic demand was likely to outweigh the drop in American business.

 

According to a