Chennai: With leather products and non-leather footwear exports to the US on the brink, the India–European Union (EU) trade deal will be a saviour for the country’s exporters in the sector. The EU is the largest destination for Indian leather products, accounting for 46%, followed by the US, which accounts for one-fifth (22%) of total exports. However, leather exports to the US declined in FY26 in the wake of the Trump tariff.Data shared by the Council for Leather Exports (CLE), an export promotion council functioning under the aegis of the commerce and industry ministry, shows that leather products and non-leather footwear exports grew by a meagre one percent to $3.2 billion during the April–Nov period of the current fiscal (FY26) over the same period last year (FY25). Exports to the US have further reduced by 2%–3% on a month-on-month basis in Dec 2025 over Nov 2025, according to CLE.
Against this backdrop, the free trade agreement (FTA) between India and the EU has come as a booster, R Selvam, executive director, CLE, said. “The development will facilitate more brands launching their shopfloors to make in India with a focus on the EU market comprising 27 countries. While the FTA has given an edge to India over other nations in this sector such as Vietnam and Indonesia, we will also be able to access the latest technology to enhance production. This will help in realising our export target of $14 billion by 2030,” he told TOI. The trade agreement with the EU has eliminated the existing 8%–17% tariff on exports of different kinds of leather products to these countries, he added.K R Vijayan, managing director of Good Leather Company, with operations in the leather manufacturing hub of Ranipet district, said the overall global export value did not decline in the leather segment this financial year because Indian exporters increased their volume of exports to the US by 10% in the past nine months (April–Dec FY26 vs April–Dec FY25), despite compromising on profit margins. “This is where the trade agreement with the EU becomes significant. It will compensate for our losses with the US in the coming years,” he said.Ateequr Rahman, chairman of The Indian Finished Leather Manufacturers and Exporters Association (IFLMEA), said exports to the EU will increase to 60% over the next three years. IFLMEA is also organising its Leather Fashion Show on February 1 in Chennai, which will highlight India’s expanding leather goods industry and foster critical partnerships between manufacturers and retailers across the nation.
