Introduction
India’s leather, leather products, and footwear industry is a significant contributor to the country’s economy, supported by strong manufacturing capabilities and a well-established value chain. The sector has developed into a major export-oriented industry, with products such as footwear, leather goods, and garments witnessing steady demand in global markets, thereby contributing to India’s foreign exchange earnings and overall economic growth. The leather and footwear industry has a significant impact on the Indian economy and is among the top ten foreign exchange-earning sectors in the country. India has a strong raw-material base, accounting for around 20% of the world's cattle and buffalo population and 11% of the world's goat and sheep population. India also accounts for around 13% of global leather production, supporting a substantial domestic base for leather processing and manufacturing.
India’s product-wise share of total exports FY27 (April-June 2026)
Source: Council for Leather Exports
India has a well-established leather and footwear manufacturing ecosystem supported by skilled manpower, modern manufacturing facilities, tanning capabilities, innovative technology and allied industries. The sector is employment-intensive and provides jobs to approximately 4.42 million people, with women accounting for about 40% of employment in the leather products sector.
India is the second-largest footwear producer globally, with annual production of around 3 billion pairs. The country's product base includes finished leather, leather footwear, non-leather footwear, footwear components, leather garments, leather goods, saddlery and harness products and other leather accessories. In FY26, India's exports of leather, leather products and footwear reached US$ 4.75 billion, with value-added footwear and leather goods being major contributors.
Tamil Nadu accounts for over 40% of India's leather production and emerged as the leading exporting state for leather and leather products in FY26, with exports of US$ 1.59 billion, accounting for nearly 37% of India's total sector exports.
Export Trend
India’s leather and leather product exports (US$ million)
Source: Council for Leather Exports, Business Today
As per the officially notified DGCI&S monthly export data, exports of leather, leather products and footwear during April-June 2026-27 stood at Rs. 10,948 crore (US$ 1.16 billion), compared with Rs. 11,326 crore (US$ 1.20 billion) in April-June 2025-26, registering a decline of 3.68% in US$ terms. In rupee terms, exports increased 6.68% during the period.
Leather footwear accounted for the largest share at Rs. 4,439.36 crore (US$ 470.37 million), followed by leather goods at Rs. 2,835.09 crore (US$ 300.39 million) finished leather at Rs. 1,002.45 crore (US$ 105.86 million), leather garments at Rs. 950.8 crore (US$ 100.75 million), non-leather footwear at Rs. 645.00 crore (US$ 67.92 million), footwear components at Rs. 560.32 crore (US$ 59.00 million), and saddlery and harness at Rs. 522.62 crore (US$ 55.03 million).
Overall, the data indicate that India’s export performance in the leather, leather products and footwear sector continues to be led by leather footwear, which accounted for 40.57% of total exports during Q1 FY27. Leather goods, finished leather, leather garments, footwear components, saddlery and harness, and non-leather footwear together contributed to the diversification of the sector’s export basket.
Export Destinations
India’s leather and leather products exports in FY26 are moderately diversified, with the USA emerging as the largest export destination, accounting for 20.54% of total exports. Among European markets, Germany (10.97%), the UK (8.84%), Italy (6.22%), France (4.65%), and Spain (5.47%) collectively represent a significant share, highlighting strong demand from the region. The UAE (2.99%) and the Netherlands (6.11%) also contribute notably, while Hong Kong (0.97%) holds a relatively smaller share. A substantial 34.21% is categorized under Others, indicating a broad global presence across multiple smaller markets. Overall, the data reflects India’s strong positioning in key developed markets alongside a well-distributed export base across emerging and diversified destinations. India exports leather to more than 50 countries. USA, Germany, the UK, Italy, France, Spain, Netherlands, China, Belgium, UAE, Australia, Poland, Hong Kong, Denmark, Canada, Vietnam, and Portugal are among the top importers of leather and leather products from India.
India's country-wise share of leather and leather products exports in FY27(April to June 2026)
Source: Council for Leather Exports
During Q1 FY27, the US remained the largest destination for India’s leather, leather products and footwear exports, accounting for 19.68% of total exports, followed by Germany (10.30%), the UK (8.04%), Italy (6.44%) and Spain (5.62%). The top five destinations together accounted for 48.33% of total exports, while the top 15 destinations contributed 75.53%. Among the major markets, exports to Spain, the Netherlands and Poland increased 16.63%, 13.25% and 19.60%, respectively, while exports to the US, Germany, the UK and France declined 12.09%, 12.80%, 14.16% and 27.51%, respectively. Overall, India's exports of leather, leather products and footwear declined 3.68% YoY to US$ 1.16 billion during April-June 2026.
India exports leather, leather products and footwear to more than 50 countries. The US, Germany, the UK, the Netherlands, Italy, Spain, France, Poland, the UAE, China, Vietnam, Australia, Japan, South Korea and Portugal were among the major destinations during April-June 2026. The top 15 countries together accounted for about 75.53% of India’s total leather, leather products and footwear exports during April-June 2026, with an export value of US$ 875.46 million.
Government Initiatives
India’s leather and footwear sector continues to be supported by government measures aimed at improving productivity, quality, employment, manufacturing capacity and export competitiveness. The Focus Product Scheme for the Footwear and Leather Sector, announced in Union Budget 2025-26, is aimed at supporting design capacity, component manufacturing and machinery for non-leather quality footwear, along with support for leather footwear and products. The scheme is expected to facilitate employment for 22 lakh people, generate turnover of Rs. 4.02 lakh crore (US$ 42.38 billion) and increase exports to more than Rs. 1.1 lakh crore (US$ 11.66 billion).
Union Budget 2026-27 introduced additional customs and export-facilitation measures for the sector. The Budget extended duty-free imports of specified inputs, previously available for exports of leather or synthetic footwear, to shoe uppers. It also extended the period for exporting final products from six months to one year for exporters of leather or textile garments, leather or synthetic footwear and other leather products, providing greater operational flexibility and supporting export competitiveness.
Indian Footwear and Leather Development Program (IFLDP)
The Union Budget 2026-27 introduced additional measures under the Import of Goods at Concessional Rate of Duty (IGCR) Scheme to boost the footwear and leather sector. The scheme has been extended to shoe upper exporters, a value-added segment that recorded exports of Rs. 2,108.34 crore (US$ 222 million) in 2024-25. The period for export under the IGCR Scheme has been extended from six months to one year from the date of import of inputs, while the scheme and related customs duty benefits for export-oriented inputs have been extended until March 31, 2028. These measures are expected to enhance export competitiveness, support value-added manufacturing and strengthen India’s position in global footwear and leather product markets.
The IFLDP scheme was launched to develop the infrastructure, increase production, facilitate investments, and generate employment in the leather industry of India. Under this scheme, US$ 220 million (Rs. 1,700 crore) has been allocated till 2026. Following are the six sub-schemes under IFLDP:
- Sustainable Technology and Environmental Protection (STEP) - The STEP initiative is aimed at sustainable and environment-friendly industrial and tanning activities which are particularly linked to environmental concerns. Considering these issues, zero liquid and wastewater discharge is made mandatory in some states. Assistance for the upgradation of Common Effluent Treatment Plants (CETPs) and vision document preparation is provided under the scheme.
- Integrated Development of Leather Sector (IDLS) - The main objective of this scheme is to encourage entrepreneurs to diversify and set up new units leading to better productivity.
- Establishment of Institutional Facilities - The scheme aims to provide infrastructure upgradation of campuses of the Footwear Design and Development Institute (FDDI)
- Mega Leather Footwear and Accessories Cluster Development (MLFACD) - The scheme was launched to assist entrepreneurs by providing modern infrastructure, technology, training and skill development and human resource development inputs.
- Brand Promotion of Indian Brands in Leather - The scheme aims to provide Indian footwear and leather manufacturers international branding support to provide better product visibility.
- Footwear Sector and Development of Design Studios - This scheme provides design support, technical assistance and opportunities for employment and business.
Governing Body
Council for Leather Exports (CLE)
Established in 1984, the Council for Leather Exports (CLE) is the single largest and apex trade promotion organisation for India’s leather and leather products industry. Functioning under the aegis of the Ministry of Commerce & Industry, Government of India, CLE is the notified Export Promotion Organisation for the leather and leather products industry. As of March 31, 2026, CLE had 2,872 members across five regions, including 828 members in the Southern Region, 740 in the Northern Region, 630 in the Central Region, 465 in the Eastern Region and 209 in the Western Region.
CLE works towards developing and strengthening the leather industry and promoting export growth through market development and international trade promotion activities. It assists exporters and overseas buyers, provides market and policy information, facilitates participation in international trade fairs and buyer-seller meets, supports business collaborations and acts as a link between the Government and the industry. The Council also facilitates various export-related procedures and supports the implementation of Government programmes for infrastructure development, human resource development and sectoral growth.
As part of its FY27 activities, CLE is also facilitating exporters' participation in international trade events under the Export Promotion Mission (EPM) and supporting testing, inspection and certification requirements under the TRACE component of the mission.
FAQs
Leather footwear is the largest export category, accounting for 40.57% of India’s leather, leather products and footwear exports in Q1 FY27, with exports of US$ 470.37 million. Leather goods followed at US$ 300.39 million, while finished leather and leather garments contributed US$ 105.86 million and US$ 100.75 million, respectively.
The Council for Leather Exports (CLE) supports Indian leather exporters through market development, international trade promotion, trade fairs, buyer-seller meets, market and policy information, export procedures and business collaborations. In FY27, it also facilitated participation in international trade events and supporting testing, inspection and certification requirements.
Leather footwear exports are the largest component of India’s leather export basket, accounting for 40.57% of total leather, leather products and footwear exports in Q1 FY27. With exports of US$ 470.37 million during April-June 2026, footwear remains a key contributor to India’s overall leather exports.
Value-added products such as leather footwear, leather goods and shoe uppers are strengthening India’s export potential by supporting higher-value manufacturing. Shoe uppers recorded exports of US$ 222 million in 2024-25, while government measures aim to further encourage value addition and export competitiveness.
Major leather manufacturing and export hubs include Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode in Tamil Nadu; Kolkata; Kanpur, Agra, Noida and Saharanpur; Mumbai; Jalandhar; Bengaluru; Hyderabad; Ambala, Gurgaon, Panchkula, Karnal and Faridabad; Delhi; Dewas; Kozhikode and Ernakulam/Cochin; Jaipur; and Srinagar.
Quality, testing, inspection and certification are important to India’s leather export ecosystem. The Council for Leather Exports supports exporters with these requirements through the TRACE component of the Export Promotion Mission, while government initiatives also focus on improving productivity, quality and export competitiveness.
Opportunities in value-added footwear, leather goods and branded Indian products are supporting premium leather exports. Government measures covering design, component manufacturing, machinery, branding and shoe uppers are aimed at improving product visibility, encouraging value addition and strengthening India’s position in global leather product markets.
Technology adoption is supporting productivity, modernisation and environmental performance across India’s leather industry. The Indian Footwear and Leather Development Program promotes modern infrastructure, technology and training, while the Sustainable Technology and Environmental Protection initiative supports environment-friendly tanning and upgrades to Common Effluent Treatment Plants.
India’s leather products continue to serve diverse global markets, with the US, Germany, the UK, Italy and Spain among the largest destinations in Q1 FY27. The sector exports to more than 50 countries, while Spain, the Netherlands and Poland recorded export growth during April-June 2026.
India is seeking to expand its leather export footprint through value-added manufacturing, stronger market access and policy support. The Focus Product Scheme targets leather and footwear exports of more than US$ 11.66 billion, while extended customs benefits aim to improve export competitiveness and support value-added production.
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Email: cle@cleindia.com
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