Leather Industry In India

Indian leather exports to fall 10-12% in FY26 amid high US tariff: Crisil

Revenues of Indian leather and allied product firms will decline by 10-12 per cent this fiscal following the steep 50 per cent tariffs imposed by the US, a report by Crisil Ratings said on Thursday. The US is a major market for domestic leather players. Given the significant export concentration, companies would witness a decline despite a moderate improvement in domestic demand following the rationalisation of Goods and Services Tax (GST), besides other favourable macro-economic factors such as lower income taxes, benign inflation, and low interest rates, it said. "The leather and allied products industry in India will see revenue decline 10-12 per cent on-year this fiscal as the 50 per cent tariff (25 per cent reciprocal tariff plus 25 per cent penalty for purchase of Russian oil) imposed by the United States will slash export volume," it added. The leather and allied products industry is estimated to have logged a revenue of about Rs 56,000 crore in fiscal 2025, and exports ...

US tariffs may dent Indian leather industry revenue by up to 12%: Crisil

The 50 per cent tariffs imposed by the US on India have led to order cancellations and factory shutdowns in the leather sector, particularly affecting small tanneries

Kolkata leather units hit by US tariffs, eye UK and EU markets for relief

With US tariffs on leather products doubled to 50%, exporters in Kolkata face shrinking orders and margin pressure, while betting on UK and EU deals for recovery

Leather exports up 25% at $5.7 bn in FY25, may hit $6.5 bn in FY26: CLE

The country's leather, non-leather footwear and products' exports rose by about 25 per cent year-on-year to USD 5.7 billion in 2024-25 and the shipments are likely to cross the USD 6.5 billion mark this fiscal, exporters' body CLE said on Monday. The Council for Leather Exports (CLE) said that demands in both developed and developing countries are "healthy". "In 2024-25, we have exceeded the exports target by USD 1 billion set up by the department of commerce and going by this trend, our exports will cross USD 6.5 billion in 2025-26," CLE Executive Director R Selvam said. He said that the sector is recording growth despite global uncertainties. Sharing similar views, CLE Chairman Rajendra Kumar Jalan said that the exports are doing good in both the US and the UK, the key export destinations for India. Due to the 10 per cent tariff hike, all the exporters are giving discounts to buyers, but there were no order cancellations, Jalan said. "From April 14-15, the situation is normal.

Focus product scheme to boost exports by Rs 1.1 trn for leather sector: CLE

The Budget announcement for rolling out of a focused product scheme for footwear and leather sectors will help enhance productivity, competitiveness and exports by over Rs 1.1 lakh crore, CLE said on Sunday. The Council for Leather Exports (CLE) said the scheme will support design capacity, component manufacturing, and machinery required for the production of non-leather quality footwear. "The scheme will support thrust areas like design capacity, component manufacturing, and machinery required for production of footwear and products," CLE Chairman Rajendra Kumar Jalan said, adding that the scheme is expected to facilitate employment for 22 lakh people, generate turnover of Rs Rs 4 lakh crore and exports of over Rs 1.1 lakh crore. He added that it will also enhance production and productivity by attracting investments and will strengthen the component and machinery ecosystem of the sector. CLE Executive Director R Selvam said the proposal to remove 20 per cent export duty on crust

PLI scheme expansion for handicrafts, leather to create more job: Deloitte

The government in its coming Budget must extend fiscal benefits under the PLI (production linked incentive) scheme to sectors such as handicrafts and leather that can create more jobs, Deloitte said on Sunday. It also suggested that the existing PLI schemes must continue in sectors that have seen success, such as electronics, auto and semiconductors. The government in 2021 announced PLI schemes for 14 sectors, including telecommunications, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma, with an outlay of Rs 1.97 lakh crore. Deloitte further suggested that to improve global liquidity (once the Western central banks start easing their monetary policies), the government can raise the ceiling for investment size and remove location restrictions to attract more foreign investment. "Multi-brand retail and e-commerce are some sectors that may benefi

Tata International to nearly double sustainable leather production in 4 yrs

Tata International, the global trading and distribution arm of the Tata Group, on Monday said it plans to increase the production of sustainable leather to 50 pc in the next four years, from 27 per cent at present. The company launched Phoenix Leather, an eco-friendly product under its Earthcare Leather range, Tata International said in a statement. This has been developed through a patented collaboration with the Central Leather Research Institute (CLRI), which marks a significant advancement in sustainable leather technology, it added. "Tata International's Earthcare Leather range aims to lead the sustainable development of the leather industry. Despite lower demand post-Covid, we are now witnessing promising recovery with increased interest from key markets such as the USA, China, and Europe," said P Rajasekaran, Business Head - Finished Leather Business at Tata International. Tata International is one of the largest exporters of leather and leather products in India. "We are .

Vegan leather from sugarcane: PETA sees potential in India's agri-waste

Animal rights group PETA India on Wednesday said India's position as a major global sugarcane producer offers significant opportunities for expanding the use of sugarcane-based vegan leather. The organisation highlighted that India's vast sugarcane production could be leveraged to effectively utilise sugarcane waste through technology developed by PA Footwear P Ltd, a company specialising in vegan leather alternatives. India, the world's second-largest sugar producer after Brazil, grows sugarcane in 55-60 million hectares area. "India is one of the largest producers of sugarcane globally, so PA Footwear P Ltd's technology presents a significant opportunity to utilise sugarcane waste effectively," PETA India said in a statement. PA Footwear P Ltd, in partnership with the National Institute for Interdisciplinary Science and Technology, has developed Vegan Virya, a leather alternative made primarily from sugarcane. The material has received "PETA-Approved Vegan" certification from PET

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Footwear industry says it lost export orders worth $1 bn due to Covid-19

Says it may require support from government in the form of reduction in GST, especially for footwear priced above Rs 1,000

Kanpur tanneries' lockout pulls down finished leather exports by 29%

Uttar Pradesh green watchdog has now allowed the conditional opening of tanneries

UP green watchdog orders closure of Kanpur tanneries after brief reprieve

Industry blames state Jal Nigam, which runs the treatment plant, for falling short on its commitment to treat effluents generated by tanneries

Rs 26 billion special package likely for leather and footwear industry

The grant will generate 300,000 jobs, will be used will be for human resource development, setting up clusters, environment protection and export promotion, among others

Govt's clampdown on Muslim-run leather units hits jobs, drag exports by 13%

India, the world's second-biggest supplier of shoes and leather garments, exports nearly half its leather goods