The recently signed India–EU Free Trade Agreement (FTA) is expected to boost the export competitiveness of India’s footwear and leather industry, with industry experts saying the deal could help the sector achieve its $14-billion export target ahead of the 2030 deadline.
“The India–EU trade deal, and possibly a trade agreement with the US sometime soon, should make achieving the $14-billion export target relatively easier,” R Selvam, Executive Director, Council for Leather Exports (CLE), said on Saturday. He was addressing the media in Chennai while announcing the 39th India International Leather Fair (IILF) 2026, scheduled to be held from February 1.
India’s leather and footwear industry has set a target of $50 billion in overall turnover by 2030, comprising $36 billion from the domestic market and $14 billion from exports. When asked whether the $14-billion export target could be achieved well before 2030, he said it was “possible”. The industry recorded a total turnover of $24.6 billion in 2024–25, with domestic sales accounting for $19 billion and exports contributing $5.6 billion.
From 17% Tariffs to Zero
India earlier this week signed a trade agreement with the European Union, which reduces duties to zero across all tariff lines, from levels of up to 17% in certain leather and footwear categories. The deal also opens access to the EU’s leather and footwear import market, estimated at nearly $100 billion, offering significant headroom for Indian exporters from the current export level of $2.4 billion.
“Currently, we export about $2.4 billion worth of leather and footwear products to the EU. We expect this to increase to around $6 billion by 2030,” Selvam said. He added that despite the impact of 50% US tariffs, the industry expects export turnover of $5–$5.5 billion in 2025–26.
“Only around 20% of our exports go to the US, while the rest are to non-American markets. So the US tariffs did not have a major impact on the sector,” he said.
The European Union currently accounts for about 43% of India’s leather and footwear exports. “Zero-duty access to the 27-nation bloc will be a game-changer for the industry,” said M Abdul Wahab, Regional Chairman (South), Council for Leather Exports.
Selvam, however, noted that US tariffs had led to some sluggishness among domestic contract manufacturers, resulting in delays in commissioning or operationalising certain projects. “Following the India–EU FTA, enquiries have picked up, and manufacturers are now moving ahead with project commissioning,” he said.
Scaling for 2030
Selvam said capacity expansion would be critical to meet growing domestic demand as well as export requirements. “India currently manufactures around 2.6 billion pairs of footwear annually, of which nearly 90% is consumed domestically. Demand is expected to rise to 6 billion pairs by 2030, requiring an additional capacity of around 4 billion pairs,” he said.
Globally, average annual footwear consumption is about three pairs per person. Per capita consumption stands at 8–9 pairs in the US, around seven pairs in Europe, and three pairs in Japan. In India, consumption is currently less than two pairs per person annually and is expected to increase to about four pairs by 2030.