UK, EU trade pacts to boost India’s leather exports

New Delhi - The leather, footwear and accessories exports from India are set to increase by over 12% year-on-year to reach USD 5.5 billion in 2026-27, according to Ramesh Kumar Juneja, Chairman of the Council for Leather Exports (CLE). This growth is anticipated to be further bolstered by the implementation of trade agreements with the UK and the EU. In 2025-26, these exports were valued at USD 4.89 billion.

Juneja revealed that the exports to the UK are projected to soar to USD 1 billion within the next two and a half years, currently sitting at USD 600-700 million annually. The India-UK Comprehensive Economic and Trade Agreement (CETA) came into effect on July 15, 2026, granting Indian leather goods and footwear zero-duty access in the UK market. A similar trade pact with the EU is expected to be implemented from the following year, also offering a duty advantage to domestic exports.

Under the India-UK pact, Indian leather products will not enjoy a price advantage over goods from countries like Vietnam and Bangladesh. The US and EU currently account for approximately 75% of India's leather sector exports.

The leather industry, which is labor-intensive and employs around 4.42 million people, is poised to leverage these zero-duty market access agreements from partners such as the UAE, Oman, Australia, EFTA countries, the UK, European Union, and New Zealand. To promote awareness of these Free Trade Agreements (FTAs), the CLE is organizing workshops and seminars across various states.

However, Juneja highlighted certain challenges the sector must address to further enhance production, exports, and job creation. He called on the government to resume the Integrated Development of Leather Sector (IDLS) scheme for Micro, Small, and Medium Enterprises (MSMEs) and remove the 10% import duty on finished leather. Additionally, the CLE is exploring avenues to attract foreign direct investment (FDI) to promote domestic manufacturing in the country.