India’s leather exports may fall 7-8% due to US tariffs; domestic demand offsets impact
Exporters are adjusting to challenges including the Russia-Ukraine war, logistics disruptions, and pricing pressures from US buyers seeking discounts, while benefiting from recent rupee-dollar fluctuations.
| Photo Credit:
Bijoy Ghosh/businessline
India’s leather and leather goods exporters are expecting a 7-8 per cent fall in overall exports in value terms this fiscal due to the impact of steep US tariffs.
The country’s leather industry, however, expects the fast-growing domestic market, which has shown resilience, and other overseas markets to outweigh the fall in the US business.
“In the current financial year, export value may decline 7-8 per cent due to the impact of US tariffs,” Indian Leather Products Association (ILPA) president Arjun Kulkarni said on Friday in Kolkata.
Domestic and other markets to the rescue
“But, this 7-8 per cent fall in exports will be taken care of by the increasing demand in domestic market and the overseas markets such as Australia, UK and UAE,” Kulkarni said.
Kulkarni was speaking to the media at the curtain-raiser event for ILPA’s first B2B fair and fashion show. In the last financial year, total leather and leather goods exports stood at USD 5.7 billion.
Industry adapts to global challenges
According to the ILPA, the current global environment, the Russia-Ukraine war, logistics disruptions, and new US tariff measures have dampened export prospects.
“Export numbers will definitely fall, but no company may witness a decline in its turnover as much because of the increasing demand in the domestic market,” ILPA chairman Akash Nayar said.
About 5 lakh people are now working at the Bantala Leather Complex in Kolkata. “US importers continue to place orders with Kolkata-based exporters, but they are asking for around 20-25 per cent discounts. Since US dollar has gone up in the last few months compared to Indian rupee, exporters get benefit of that and they are not incurring any losses. They may not also be booking big profits,” Nayyar added.
Published on October 24, 2025
