India’s leather industry is facing mounting pressure as export orders weaken and input costs rise, reflecting the broader impact of ongoing geopolitical tensions on global trade.
Exporters report a noticeable slowdown in fresh orders from key markets, particularly in Europe and West Asia, as buyers adopt a cautious approach amid economic uncertainty and supply chain disruptions. At the same time, existing orders are being renegotiated or delayed, adding to the sector’s challenges.
Rising input costs are further squeezing margins. Prices of raw materials, chemicals, and freight have increased in recent weeks, driven by higher energy costs and disruptions in shipping routes linked to conflict-affected regions. Smaller exporters, in particular, are finding it difficult to absorb these cost pressures.
Industry stakeholders say longer transit times and unpredictable logistics are also impacting delivery schedules, making it harder to meet commitments and maintain competitiveness in global markets.
Despite the headwinds, exporters are exploring new markets and diversifying sourcing strategies to reduce dependence on any single region. Industry bodies have urged the government to provide support measures, including easier access to credit and relief on logistics costs, to help the sector navigate the current downturn.
While the near-term outlook remains uncertain, the leather industry is hoping for a stabilisation in global conditions to revive demand and restore cost efficiencies in the months ahead.