India leather exports slip 1.6% to $4.75B in FY26 as US tariffs, West Asia crisis bite
Leather, footwear and leather product exports dipped 1.6% YoY in dollar terms to $4.75B in FY26, though rupee earnings rose 2.62% to ₹41,902 crore. Leather garments bucked the trend at +23%. US tariff cut from 50% to 10% and India-EU/UK FTAs seen lifting FY27.
What happened
Indian Leather Industry · India's leather, footwear and leather products exports fell 1.6% to $4.75 billion in FY26 due to US tariffs and West Asia crisis
Key facts
- $4.75 billion FY26 exports
- -1.6% YoY in dollar terms
- +2.62% in rupee terms to ₹41,902 crore
- leather garments +23%
- US tariff cut from 50% to 10% ad valorem
- Europe ~55% share
Why this matters
Fragmented exporters facing margin pressure from West Asia disruption create a window to acquire leather garment specialists or EU-facing footwear assets before FTA-driven valuations reset upward.