The cost of leather products in India is set to rise after the government imposed a 10% customs duty on certain leather imports. This move, aimed at promoting domestic production and reducing reliance on imports, is expected to impact both manufacturers and consumers. Key imported items, such as finished leather, chemicals, and components, are now subject to higher duties, increasing input costs for the leather industry.
The Council for Leather Exports (CLE) has expressed concerns over the potential rise in production costs, which could reduce the global competitiveness of Indian leather products. The duty hike comes at a time when the industry is striving to meet its $6 billion export target and expand its market share in regions like Europe, the United States, and the Middle East.
For consumers, the price hike is likely to affect footwear, bags, and accessories, as manufacturers pass on the additional costs. Industry leaders have called for government support, such as subsidies and incentives, to mitigate the impact of the duty hike and ensure the sector’s growth momentum is not derailed.
While the move is expected to encourage the Make in India initiative by promoting local sourcing, the immediate repercussions may include a slowdown in production and a decline in exports until the industry adjusts to the new cost structure. Stakeholders are urging policymakers to strike a balance between protecting domestic interests and sustaining the industry’s global competitiveness.
