The move to zero duty across all tariff lines, from as high as 17% in some categories, will help level the playing field with Bangladesh and Cambodia and improve the competitiveness of India’s $5-billion leather and footwear export industry, according to industry experts.
Under the India–EU Free Trade Agreement (FTA) signed on Tuesday, tariffs of up to 17% have been eliminated across all tariff lines, easing access for India’s leather and footwear exports to the EU, currently valued at about $2.4 billion. The bloc’s leather and footwear imports are estimated at nearly $100 billion, offering significant headroom for Indian exporters.
India’s leather, non-leather footwear and related product exports rose 25% year-on-year to ₹48,667 crore ($5.7 billion) in FY25. While the US remains the single largest market with a 22% share, the 27-nation EU, along with the UK, accounts for the largest combined share of around 60%.
Supporting Regional Clusters
The deal is also expected to boost sourcing from key clusters such as Agra–Kanpur in Uttar Pradesh and Vellore–Ambur in Tamil Nadu, supporting formal job creation and new enterprises.
“Duties on leather and leather goods range between 4.5% and 7.5% across product categories. With these becoming zero, competitiveness improves to that extent,” said Rafeeque Ahmed, president of the All India Hides and Skins Tanners and Merchants Association.
Ahmed, who is also chairperson of Chennai-based Farida Group, said Vietnam, Indonesia, Bangladesh and Cambodia were key competitors that already enjoyed zero-duty access. “The biggest advantage will be in non-leather footwear, where duties range between 10.5% and 15%.
This segment is relatively small today but should see strong demand after duties are removed,” he added.
Analyzing Global Share
India accounts for less than 2% of global leather and footwear trade, valued at $296.5 billion, according to NITI Aayog. China dominates mass footwear and travel goods, Vietnam leads in textile- and leather-based footwear, while Italy is strong in premium processed leather and apparel.
“The Indian footwear industry will finally get much-needed support, especially after the recent setbacks from US tariffs,” said Israr Ahmed, former president of the Federation of Indian Export Organisations. The FTA, he said, puts Indian exporters on par with Vietnam and Bangladesh, which already enjoy zero-duty access to the EU.
“Typically, it takes six to eight months for footwear orders to be placed or shifted. We expect buyers to start discussions with Indian suppliers shortly, even though the FTA will take time to become operational,” he added.