India’s leather export business in 2026 continues to be a vital contributor to the country’s manufacturing and export ecosystem. The sector encompasses a broad range of products — from finished leather and footwear to accessories and garments — and supports millions of jobs, especially in MSMEs spread across major clusters in Uttar Pradesh, Tamil Nadu, West Bengal, and Maharashtra.

In recent years, the Indian government has introduced agile regulatory reforms to enhance competitiveness and simplify export procedures. A major policy shift came with the Directorate General of Foreign Trade (DGFT) issuing Notification No. 15/2025‑26, which removed longstanding procedural restrictions on the export of value‑added leather products. Among the most impactful changes was the removal of port restrictions, allowing exporters to ship finished leather, wet blue leather, and EI tanned leather from any port or Inland Container Depot (ICD) in India, rather than only from specific notified ports. This reform has significantly eased logistics bottlenecks and improved flexibility for exporters, particularly small and medium enterprises.

Another key regulatory change was the abolition of mandatory testing and certification by the Central Leather Research Institute (CLRI) for certain leather exports. This translates into reduced compliance costs and faster turnaround times for businesses, streamlining processes without compromising quality standards upheld under general customs regulations.

Fiscal measures introduced in the Union Budget 2026 further support the export ecosystem. The government raised duty‑free import limits on specified inputs used for leather and related exports, giving exporters more flexibility and cost efficiency in their value chains.

Despite these reforms, India’s leather export sector faces headwinds such as rising tariffs in key markets like the United States, which have negatively affected demand and revenue growth. Analysts estimate a possible 10–12% decline in export revenues for FY26 due to high tariff barriers abroad.

Overall, regulatory agility and policy support are helping Indian leather exporters adapt quickly to global market dynamics — strengthening their position in competitive international value chains while boosting ease of doing business.