Leather Industry Poised for Growth with Budget 2025 Provisions

The Indian leather industry expects the key policy changes announced in the Union Budget 2025-26 to lead to major growth. Finance Minister Nirmala Sitharaman has done away with the 20% export duty on crust leather and the 10% import duty on wet blue leather. This move is likely to give the tanning industry a much-needed boost and further exports of high-value leather products.

The leaders of the industries have welcomed the reforms, noting that they have the potential to strengthen domestic manufacturing and global competitiveness. The Council for Leather Exports (CLE) noted the importance of government support through a product scheme specific to the footwear and leather sector. “The budget has focused on a product scheme for the footwear and leather sector. It will help enhance productivity, competitiveness, and exports by over ₹1.1 lakh crore ($12.58 billion),” said CLE in a statement.

The scheme aims to enhance design capacity, component manufacturing, and machinery for non-leather footwear production. CLE Chairman Rajendra Kumar Jalan highlighted the economic impact, stating, “The industry will have 22 lakh jobs with total turnover of ₹400,000 crore including exports turnover of ₹110,000 crore.”

Dilip Kapur, founder and president of Hidesign, acknowledged the removal of customs duty on wet blue leather as a positive step. “It should help in key raw material cost. But the key problem in the economy and for retail, private consumption has slowed down... However, the reduction in income tax for middle class should help the industry,” he noted.

With these policy shifts, the Indian leather sector is optimistic about a revival, leveraging increased domestic demand and strengthened global positioning.