India’s leather, non-leather footwear, and leather goods exports delivered a strong performance in FY 2024–25, registering a 25% year-on-year growth to reach USD 5.7 billion, surpassing the set target by a remarkable USD 1 billion.

According to the Council for Leather Exports (CLE), this growth trajectory is expected to continue into FY 2025–26, with exports projected to cross USD 6.5 billion. Despite tariff challenges and rising competition, the sector has shown resilience, buoyed by strong demand from major markets such as the United States and the United Kingdom.

Key Growth Drivers

1. Strong Global Demand: The US and UK remain top buyers of Indian footwear and leather goods, accounting for a large share of export volumes.
2. Product Diversification: Non-leather footwear and lifestyle accessories have witnessed growing traction, helping exporters expand beyond traditional leather categories.
3. Sustainability Push: With increasing global preference for eco-friendly materials, Indian exporters are investing in green technologies and sustainable production practices.
4. Government Support: Incentives under schemes like RoDTEP, as well as skill development initiatives by LSSC, are strengthening industry competitiveness.
5. MSME Contribution: India’s robust MSME base continues to anchor exports by providing flexibility, innovation, and cost competitiveness.

Challenges Ahead

While the sector is performing well, exporters face tariff barriers, compliance costs, and stiff competition from countries like Vietnam, Bangladesh, and China. Rising input costs and global economic uncertainties also pose risks.

The Road Ahead

CLE’s projection of USD 6.5 billion exports in FY 2025–26 reflects optimism about India’s growing global footprint. Industry experts believe that with continued emphasis on skill development, digital transformation, and sustainability, the leather and footwear sector can not only meet but potentially exceed these targets.

As the world’s consumers increasingly seek quality, sustainability, and value, India’s leather and footwear industry is well-placed to step up as a reliable and innovative sourcing hub.

Read more at: https://economictimes.indiatimes.com/news/economy/for - eign-trade/leather-footwear-exports-up-25-pc-to-usd-5-7-bn-in-2024-25-may-cross-usd-6-5-bn-in-fy26/articleshow/120481520 .cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst