India’s leather and footwear exports have faced challenges due to economic slowdowns in key markets. In the fiscal year 2023-24, exports declined by nearly 10%, from $4.75 billion in 2022-23 to $4.28 billion. This downturn is attributed to reduced demand from major markets such as the United States and Europe, which have experienced recessions and other economic pressures.
The European Union (EU) and the United States are significant destinations for India’s leather exports, accounting for 46.2% and 42.7% of leather and footwear exports, respectively.
A slowdown in these regions directly impacts India’s export performance.
In response, the Council for Leather Exports (CLE) has welcomed recent government measures aimed at enhancing the competitiveness of India’s leather and footwear sector. These include reduced export duties on certain leathers and expanding duty-free schemes to include additional inputs, which are expected to boost export potential.
Despite these challenges, industry leaders remain optimistic. M. Abdul Wahab, Regional Chairman of the Council for Leather Exports (Southern Region), anticipates a positive trend in export growth bolstered by investments from Taiwanese companies in Tamil Nadu.
In summary, while India’s leather and footwear exports have been affected by economic slowdowns in key markets, strategic policy measures and investments aim to revitalize the sector and enhance its global competitiveness.
