India's leather exports slip 1.6% to $4.75B in FY26 as US tariffs, West Asia crisis bite
Indian leather, footwear and goods exports fell 1.6% in dollar terms to $4.75 billion in FY26, though rupee revenues rose 2.62% to ₹41,902 crore. Leather garments bucked the trend with 23% growth. A 50% US reciprocal tariff and 10% ad valorem surcharge from Feb 2026 weigh on FY27, but EU and UK FTAs offer recovery hope.
What happened
Indian Leather & Footwear Industry · India's leather, footwear and goods 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% dollar decline
- ₹41,902 crore
- +2.62% rupee growth
- 23% leather garments growth
- 50% US reciprocal tariff
- 10% ad valorem surcharge from Feb 24 2026
- 55% Europe share
Why this matters
Tariff dislocation creates a window to acquire US-dependent leather goods players at distressed multiples while building EU/UK distribution ahead of FTA ramp.