India’s leather and footwear exporters are set to gain a major competitive edge following the signing of the India–European Union Free Trade Agreement (FTA). By eliminating tariffs of up to 17% across all tariff lines, the deal significantly improves market access to the EU and places Indian exporters on an equal footing with rivals such as Bangladesh, Vietnam, Cambodia, and Indonesia.
Under the India–EU FTA signed on Tuesday, tariffs as high as 17% have been removed across all leather and footwear tariff lines. This move will make Indian products more price-competitive in the European Union, where India’s leather and footwear exports are currently valued at around $2.4 billion.
The opportunity is substantial, as the EU’s total leather and footwear imports are estimated at nearly $100 billion, offering significant headroom for Indian exporters to expand their market share.
India’s leather, non-leather footwear, and allied product exports have already shown robust growth.
Exports rose 25% year-on-year to ₹48,667 crore ($5.7 billion) in FY25
The United States remains the single largest market with a 22% share
The 27-nation EU and the UK together account for around 60% of total exports
The FTA is expected to further accelerate this growth by reducing cost disadvantages faced by Indian exporters in the EU.
The agreement is expected to strengthen sourcing from major leather and footwear clusters, including:
Agra–Kanpur in Uttar Pradesh
Vellore–Ambur in Tamil Nadu
Industry experts say this could drive formal job creation, attract new enterprises, and deepen India’s role in global supply chains.
“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, noted that Vietnam, Indonesia, Bangladesh and Cambodia already enjoyed zero-duty access to the EU.
“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.
According to NITI Aayog, India accounts for less than 2% of the global leather and footwear trade, which is valued at $296.5 billion.
China dominates mass footwear and travel goods
Vietnam leads in textile- and leather-based footwear
Italy specialises in premium processed leather and apparel
The India–EU FTA is expected to help India close this gap, particularly in value-added and non-leather footwear segments.
“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 (FIEO).
He added, “The FTA puts Indian exporters on par with Vietnam and Bangladesh, which already enjoy zero-duty access to the EU.”
Industry experts caution that while the benefits are significant, the shift will take time.
“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,” Israr Ahmed said.