India's Leather Industry Eyes Domestic Growth Amid Export Challenges

India's leather industry anticipates a 7-8% decline in exports for the 2025-26 fiscal year due to steep US tariffs. Despite this setback, the sector remains resilient, with strong domestic growth expected to stabilize revenues. The upcoming ILPA fair highlights the industry's optimism and focus on local market expansion.

India's leather exporters face a challenging 7-8% drop in shipments for the 2025-26 fiscal year, primarily due to high US tariffs, officials announced on Friday. Yet, the industry's resilience shines through as a burgeoning domestic market promises to cushion the blow and stabilize total earnings.

While an export decline is projected, industry insiders remain optimistic, citing robust domestic growth as a potential mitigating factor. With hopes for an overall gain by 2026-27, the Indian Leather Products Association (ILPA) remains cautiously optimistic.

The forthcoming All India Leather Products and Allied Fair reflects this optimism, with major US buyers already confirming attendance. The event, focusing on sustainable leather goods, highlights India's reputation for quality, which continues to attract significant international interest despite global trade challenges.

(With inputs from agencies.)