India’s leather and leather goods exporters are bracing for a 5–8 per cent decline in exports in FY26, weighed down by steep US tariff measures and a weak global trade environment. However, a buoyant domestic market is expected to soften the impact and keep overall turnover steady, according to members of the Indian Leather Products Association (ILPA).
The association’s president Arjun Mukund Kulkarni said the impact on exports could be around 8 per cent He was speaking at the curtain-raiser of the association’s B2B fair and fashion show.
Data compiled by the Council for Leather Exports shows that between April and March 2025, India’s total export of leather, leather products and footwear was $4828.97 million. The US was the biggest export market, accounting for 21.65 per cent of total export.
The slowdown is anticipated against the backdrop of multiple global headwinds — the Russia-Ukraine war, Suez Canal bottlenecks, and US tariffs that have raised duties on Indian leather goods to as high as 58 per cent. ILPA officials remain optimistic that turnovers will not decline as domestic demand is strong.
“The Indian market is growing fast with many young billionaires who have a taste for quality and design,” said ILPA vice-president Rajarshi Dey.
Exporters are also charting new geographies in a bid to diversify and are seeing prospects of higher exports in markets such as South Africa and South America. However, despite tariffs, American importers continue to place orders with Indian exporters and Indian products are still preferred over exports from Vietnam, ILPA members said.