India’s leather sector eyes stronger export competitiveness through policy and trade tailwinds

What to watch

• Execution or expansion of trade agreements that lower duties for Indian leather, footwear and accessories in major consumer markets.
• Export-order growth, especially in higher-value finished footwear and leather goods rather than raw or semi-finished materials.
• New government incentives for modernization, common effluent treatment, design, machinery and export infrastructure.
• Evidence of global brands adding India to approved vendor lists or moving meaningful volumes from incumbent sourcing hubs.
• Environmental enforcement, tannery closures, water-stress events or compliance failures in major leather clusters.
• Changes in EU, UK and US rules on deforestation-linked supply chains, product traceability, chemicals and forced-labor due diligence.
• Hide and skin availability, leather-price inflation, freight costs and currency movements affecting supplier margins and quoted prices.
• Build a tiered India supplier pipeline across finished leather goods, footwear, components and non-leather alternatives rather than relying on a single vendor.
• Prioritize suppliers with audited environmental controls, wastewater treatment, leather traceability, restricted-substance compliance and credible labor standards.
• Request landed-cost comparisons against China, Vietnam, Bangladesh and Indonesia, including duty treatment by destination market and category.
• Use pilot orders to test quality consistency, lead times, seasonal capacity and ability to meet brand packaging, design and compliance specifications.
• Monitor whether prospective trade-access improvements apply to the specific HS codes and end markets relevant to footwear, handbags, belts and upholstery.
• Develop dual-sourcing plans that pair Indian finished-goods capacity with alternative material suppliers to reduce exposure to hide, chemical and logistics volatility.