Leather, Footwear Exports May Jump To USD 5.5 Bn In 2026-27, Up Over 12%: CLE Chairman

New Delhi, Sep 17 (KNN) India's leather, footwear and accessories exports are expected to grow over 12 per cent year-on-year (YoY) to USD 5.5 billion in 2026-27 from USD 4.89 billion in the previous fiscal, with recent trade agreements expected to provide further momentum, Council for Leather Exports (CLE) Chairman Ramesh Kumar Juneja said.

Exports are expected to receive a further boost from the implementation of trade pacts with the UK and the European Union, which together account for around 75 per cent of India's sectoral exports.

Zero-Duty Access to Boost UK, EU Exports

Juneja said India's exports of leather and footwear to the UK, currently at around USD 600-700 million annually, could reach USD 1 billion over the next two and a half years, PTI reported.

The India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, 2026, providing Indian leather goods and footwear zero-duty access to the British market. A similar duty advantage is expected under the India-EU trade pact, which is likely to be implemented next year.

Juneja said the agreements would improve the sector's competitiveness against exporters from countries such as Vietnam and Bangladesh.

MSMEs to Get FTA Awareness Support

The labour-intensive sector currently employs around 4.42 million people and is positioned to benefit from zero-duty access under recent trade agreements with markets including the UAE, Oman, Australia, EFTA countries, the UK, EU and New Zealand.

The CLE is organising workshops and seminars across states to help MSME exporters understand and utilise the opportunities available under these FTAs.

CLE Seeks Policy Support for MSMEs

Juneja urged the government to revive the Integrated Development of Leather Sector (IDLS) scheme for MSMEs and remove the 10 per cent import duty on finished leather to support production, exports and employment.

The council is also working to attract foreign direct investment (FDI) into the sector to strengthen domestic manufacturing capacity, he said.

(KNN Bureau)