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Business News›News›Economy›Foreign Trade›Leather, footwear exports may hit $5.5 billion as UK, EU trade pacts boost growth: CLE Chairman Juneja

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Leather, footwear exports may hit $5.5 billion as UK, EU trade pacts boost growth: CLE Chairman Juneja
Synopsis

India's leather exports are projected to reach USD 5.5 billion by 2026-27. Trade pacts with the UK and EU will significantly boost these future exports. The India-UK agreement offers zero-duty access for Indian leather goods. Similar duty advantages will also be available under the EU trade pact. The sector currently employs over 4.4 million people.

ANI

New Delhi: The country's leather, footwear and accessories exports are expected to grow by over 12 per cent year-on-year to USD 5.5 billion in 2026-27 and get a further boost in the next fiscal from the implementation of trade pacts with the UK and the EU, CLE Chairman Ramesh Kumar Juneja said.



In 2025-26, the exports stood at USD 4.89 billion.



Also Read: India’s exporters in gems, textiles, engineering, and leather hasten US shipments amid tariff uncertainty

The Chairman of the Council for Leather Exports (CLE) also said that the exports to the UK are expected to reach USD one billion in the next two and a half years. It currently stands at USD 600-700 million every year.



The India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, 2026. A similar trade pact with the 27-nation European Union (EU) is expected to be implemented from next year.




Under the India-UK pact, Indian leather goods and footwear are getting zero-duty access in the British market. Similar duty advantage will also be availed by the domestic exports under the trade pact with the EU.

"Our products will not get price advantage over goods from countries like Vietnam and Bangladesh," Juneja told PTI.

The US and EU account for about 75 per cent of the sector's total exports from India.



Also Read: Bengal leather industry expecting raw material shortage amid strict slaughter norms



This labour-intensive sector currently provides employment to 4.42 million people and is perfectly positioned to leverage zero-duty market access from recent Free Trade Agreements with partners like the UAE, Oman, Australia, EFTA countries, the UK, European Union, and New Zealand, he said.



Juneja added that the council is taking a series of measures such as organising workshops and seminars in different states for MSME exporters to increase awareness about these FTAs.



Talking about challenges for the sector which need redressal to further boost production, exports and job creation, the chairman urged the government to resume the Integrated Development of Leather Sector (IDLS) scheme for MSMEs and remove the 10 per cent import duty on finished leather.



He said that the council is focusing on ways to attract foreign direct investment (FDI) to boost domestic manufacturing in the country.

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