India’s leather exports to EU could hit $6 billion by 2030 on zero-duty access

C Shivakumar @ CHENNAI:
India’s leather and footwear industry is pinning its next phase of export growth on the proposed India–EU free trade agreement, with industry leaders estimating exports to the bloc could rise to $6 billion by 2030 if zero-duty access is secured.

M Abdul Wahab, Regional Chairman (South), told The New Indian Express that the European Union currently accounts for about 43% of India’s leather exports, valued at around $2.4 billion. Export duties imposed by the EU range from 5% to 17%. “If these tariffs are reduced to zero under the FTA, exports to the EU could increase to $6 billion,” Wahab said.

However, this all depends on the ratification by EU states which is expected by the end of this year or by next year, he added.

Meanwhile, The Council for Leather Exports (CLE) has welcomed the Union Budget 2026–27 announcement extending the Import of Goods at Concessional Rate of Duty (IGCR) scheme to shoe uppers exporters, providing basic customs duty exemption for notified critical inputs.

The scheme, which already covers exporters of leather garments, footwear and leather products, has now been expanded to include shoe uppers exporters. CLE said the move would significantly benefit exporters of this value-added segment and help boost exports, which stood at $222 million in 2024–25.

The exporters’ body also welcomed the extension of the permissible export period under the IGCR scheme from six months to one year from the date of import of inputs, as notified under customs notification.
In addition, CLE thanked the government for extending the IGCR scheme’s validity till March 31, 2028, from the earlier deadline of March 31, 2026.

The council also described as positive the extension of basic customs duty exemption on imports of tags, labels, stickers, belts and similar items by bona fide exporters until March 31, 2028.

The allocation under RoDTEP scheme (Remission of Duties and Taxes on Exported Products), a government initiative to refund embedded central, state, and local taxes/levies on exported goods to boost competitiveness, has been reduced from Rs 18233 Cr in 2025-26 to Rs 10000 Cr in 2926-27, which has raised concern amongst the exporters.