India's leather exports slip 1.6% to $4.75B in FY26 as US tariffs, West Asia crisis bite
Indian leather, footwear and goods exports fell 1.6% in dollar terms to $4.75 billion in FY26, though rupee revenues rose 2.62% to ₹41,902 crore. Leather garments bucked the trend with 23% growth. A 50% US reciprocal tariff and 10% ad valorem surcharge from Feb 2026 weigh on FY27, but EU and UK FTAs offer recovery hope.
India's leather, footwear and goods exports fell 1.6% to $4.75 billion in FY26 due to US tariffs and West Asia crisis, though rupee terms rose 2.62%. India-EU and India-UK FTAs expected to boost FY27 recovery.
Why this matters
India's leather sector faces dual headwinds from US tariff escalation and West Asia conflict, with FY27 outlook hinging on EU and UK FTA-led market diversification.
Retail-company theme steady at 706 signals in last 90 days.