India’s leather and footwear industry is set for a significant export lift after the recently concluded India-European Union Free Trade Agreement (FTA) eliminated the EU’s import duty on Indian leather goods — cutting tariffs from about 17 % to zero — and enhancing India’s cost competitiveness in the European market.
According to a report by credit ratings agency CareEdge, the tariff removal has positioned India as a principal gainer among global leather exporters to the EU, helping domestic exporters compete more effectively against rivals from Bangladesh, Turkey and Vietnam that already enjoyed duty-free access.
The EU leather and footwear import market is valued at roughly $100 billion, and the tariff cut is expected to support India’s exports — including footwear, garments, tanned leathers and accessories — while helping producers capture a larger share of European demand.
The broader trade pact, described as one of India’s most ambitious agreements, eliminated or reduced tariffs on a wide range of Indian export lines, including textiles, gems and jewellery, marine products and chemicals, opening market opportunities across sectors and strengthening bilateral trade ties spanning nearly two billion consumers.
Analysts say the tariff cuts, combined with supportive domestic policies such as relaxed duties on key inputs and extended export realisation timelines, could spur investment, create jobs in leather clusters and contribute to export growth in the coming years.