The recently concluded India-European Union Free Trade Agreement (FTA) is expected to give a significant lift to India’s leather goods exporters, with industry analysts estimating up to a 20% increase in exports to the EU once tariff barriers are removed. The landmark deal, signed after nearly two decades of negotiations, aims to eliminate import duties on a wide range of products, boosting competitiveness for Indian manufacturers in Europe’s vast market.
Under the agreement, tariffs on leather and related products — which previously ranged up to 17% — will be cut to zero, bringing Indian exporters in line with competitors from Bangladesh, Vietnam, Cambodia and Indonesia that already enjoy preferential access to the European market. This shift is expected to unlock new orders and strengthen India’s foothold in EU supply chains for footwear, handbags and other leather-based products.
Industry representatives said the FTA will particularly benefit key production clusters such as Agra, Kanpur, Vellore and Ambur, where exporters have long faced higher costs relative to rivals in Southeast Asia. Zero duties are likely to improve price competitiveness and encourage investment in capacity expansion and quality upgrades.
Experts note that the broader labour-intensive sector — including textiles, footwear and other consumer goods — stands to gain from the deal, helping India diversify its export markets and mitigate tariff pressures from other trading partners such as the United States.
The FTA covers preferential market access for over 99% of Indian exports by value and is seen as a strategic milestone that could reshape trade ties between India and the EU’s 27 member states. Tariff elimination for leather and other goods is expected to come into effect once the pact is implemented, potentially as early as later this year.
