What tariff benefits does the FTA provide for Indian leather exports?

The FTA eliminates EU tariffs of up to 17% on leather goods and footwear. This gives Indian exporters significant price parity with competitors from China, Vietnam, and Bangladesh.

Which are India's main leather and footwear manufacturing regions?

Chennai has the largest concentration of tanneries and finished leather, Kanpur specializes in leather goods, Agra is the footwear capital, and Kolkata produces finished goods including leather garments.

What sustainability requirements apply to leather exports to the EU?

The EU requires compliance with REACH for chemicals used in tanning, the EU Deforestation Regulation (EUDR) traceability for raw materials, and increasingly demands LWG (Leather Working Group) environmental certification.

Leather & Footwear

Up to 17% tariff elimination — Indian leather exporters gain price parity with competitors

India's leather and footwear industry is one of the oldest organized manufacturing sectors in the country, employing over 4 million workers and accounting for roughly 13% of global leather production. The EU-India corridor represents approximately €2.1 billion in bilateral trade, with Indian exports concentrated in finished leather, leather garments, footwear uppers, and completed shoes. European buyers source from India for a combination of competitive pricing, skilled hand-finishing capabilities, and increasingly, compliance with sustainability certifications like Leather Working Group (LWG) standards.

The EU-India FTA negotiations have placed leather and footwear in a priority liberalization basket, with tariff reductions of up to 17% phased over 5-7 years. This is significant because Indian leather exporters currently face duties of 8-17% depending on the product category, while competitors like Vietnam and Bangladesh enjoy preferential access through their own trade agreements. The tariff elimination will bring Indian manufacturers closer to price parity, particularly in mid-range footwear and leather accessories where India already competes on craftsmanship.

Key challenges remain around REACH compliance for leather chemicals, the EU Deforestation Regulation (EUDR) affecting raw material traceability, and meeting the chromium VI limits that several EU member states enforce more strictly than the baseline EU standard. Indian exporters who invest in LWG certification, restricted substance list (RSL) testing, and full supply chain traceability are positioned to capture share from Chinese suppliers currently under scrutiny for environmental and labor practices.