The policy changes for the Indian leather sector as announced in the Indian Budget 2025-26 could well be a fantastic opportunity for innovation, growth, global market expansion even as some healthy competition awaits. An analysis.

By Arshad Khan 6 February 2025

Long Story, Cut Short

The removal of export duty on crust leather is a game-changer since Indian semi-finished leather has always had strong demand in export markets.

This policy shift could significantly increase leather exports, potentially bringing figures back to FY13 levels, when finished leather exports alone touched $1.3 billion, compared to today’s $300–450 million.

Many industry players believe this could mark a turning point, and credit where it’s due, the Council for Leather Exports (CLE) has played a key role in making this happen.

The Indian leather & footwear industry plays a crucial role in employment generation, with nearly 42 lakh (4.2 million) people working in the sector. It has also been a major contributor to the country’s exports. However, the industry has been facing challenges due to certain policies that needed revision to ensure Indian exporters remain competitive in the global market. Through the Council for Leather Exports (CLE), the industry has been actively advocating for these changes.

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