The tariff simplification measures are likely to ease operational bottlenecks, reduce input costs and provide exporters with greater flexibility in managing production and compliance requirements
In a move aimed at strengthening India’s position in global leather and footwear trade, the Union Budget has widened duty-free import provisions for key inputs and extended benefits across segments including shoe uppers. The tariff simplification measures are expected to ease operational bottlenecks, reduce input costs and provide exporters with greater flexibility in managing production and compliance requirements.
The duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear will be allowed. For a sector that is both employment-intensive and export-driven, experts noted that these steps could help bridge competitiveness gaps with regional peers while supporting faster order execution and better working capital management. Industry stakeholders view the reforms as a timely push to build a more resilient and globally aligned manufacturing ecosystem.
Focus On Growth
The extension of duty-free import benefits to shoe uppers, along with longer export timelines, will significantly improve supply-chain efficiency and ease compliance for manufacturers, as per the experts and industry leaders.
“Measures such as improved duty-free access for key inputs, extending benefits across segments like shoe uppers, and providing greater flexibility in export timelines will meaningfully enhance cost competitiveness and ease of doing business for manufacturers. At a time when global sourcing markets are increasingly demanding on speed, quality and compliance, these steps can strengthen India’s position as a reliable leather and footwear manufacturing partner and support the sector’s continued growth in exports and employment,” stated Shiraz Askari, President, Apollo Fashion International.
The time period of export of textile, leather garments, leather, synthetic footwear or any other leather product by exporters is being extended from six months to twelve months, the official document highlighted.
“These measures will enable exporters to plan production cycles more effectively, enhance cost competitiveness, and respond better to global demand. At a time when India is positioning itself as a reliable manufacturing and sourcing hub, such targeted policy support will go a long way in accelerating footwear exports and reinforcing India’s presence in international markets,” Sachin Joseph, EVP, Marketing and IT, Paragon Footwear.
Equally important is the Budget’s emphasis on building future-ready capabilities. As India invests in a young and digitally skilled workforce, there is strong alignment with our focus on design, technology and skill development. The underlying emphasis on inclusive growth also resonates with us, as we continue to expand through local entrepreneurship, deeper reach across emerging markets, and a long-standing commitment to trust and quality.”
Tackling US Tariffs
India’s leather and allied products sector is bracing for a sharp downturn this fiscal, with revenues expected to drop 10-12 per cent following steep tariffs imposed by the United States, according to a Crisil Ratings report last year.
Exports constitute around 70 per cent of India’s Rs 56,000 crore leather industry revenue. The US accounts for 22 per cent, while the European Union represents over half of total shipments. Crisil noted that small tanneries and units heavily dependent on the US market have already faced order cancellations and production halts.
President Droupadi Murmu earlier said India must widen its footprint in the global footwear market to accelerate export growth, noting that the country already ranks among the world’s leading producers and exporters. Addressing the convocation of the Footwear Design and Development Institute (FDDI), she said the sector is poised for rapid expansion, particularly in sports and non-leather categories that are witnessing strong international demand.
“India is a major footwear exporter of the world, but to further boost our exports, the footwear business needs to be expanded even more,” Murmu told graduating students and industry representatives. She added that the commerce and industry ministry is extending multiple support measures to attract fresh investments into footwear manufacturing and design.
India’s footwear exports touched over USD 2.5 billion in 2024–25, while imports stood at USD 680 million. With exports nearly four times higher than imports, the President said the gap underscores the strength of domestic manufacturing and the potential to scale further. She expressed confidence that India, currently the world’s second-largest footwear producer and consumer, could emerge as a global leader in the segment in the coming years.
India has gained preferential access to the European markets across 97 per cent of tariff lines, covering 99.5 per cent of trade value, in particular. 70.4 per cent tariff lines covering 90.7 per cent of India’s exports will have immediate duty elimination for important labour-intensive sectors such as textiles, leather and footwear.
Together, the tariff relaxations signal a shift towards making trade policy an active tool for manufacturing competitiveness rather than just revenue protection. By lowering input barriers and easing procedural constraints, the government is helping leather and footwear exporters operate with greater predictability, speed and cost efficiency.
