India's leather exports slip 1.6% to $4.75 bn in FY26 as US tariffs, West Asia crisis bite

Dollar-denominated leather, footwear and goods exports fell to $4.75 bn in FY26, though rupee receipts rose 2.62% to ₹41,902 cr. Leather garments bucked the trend with 23% growth. US reciprocal tariffs eased from 50% to 10% ad valorem on Feb 24, 2026; EU and UK FTAs seen lifting FY27.

— Source publishedWed, 20 May, 2026, 18:44 IST·First seen Wed, 20 May, 2026, 20:34 IST·Source The Hindu BusinessLine

What happened

Indian Leather & Footwear Industry · India's leather, footwear and goods exports fell 1.6% in dollar terms to $4.75 billion in FY26, hit by US tariffs and West

Key facts

  • $4.75 billion FY26 exports
  • 1.6% dollar decline
  • 2.62% rupee growth to ₹41,902 crore
  • 23% leather garments growth
  • 50% US reciprocal tariff replaced by 10% ad valorem from Feb 24, 2026
  • Europe ~55% share

Why this matters

Tariff relief and impending EU/UK FTAs make this the window to scout bolt-on leather garment and footwear targets before FY27 multiples re-rate on export tailwinds.