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Relief considered for India’s footwear sector

26/01/2026
India is considering a relief package of around $1 billion to support its footwear manufacturing sector after the United States imposed import tariffs of nearly 50% on Indian exports, including leather and footwear products.

The higher duties have raised export prices, particularly in the US market, reducing the competitiveness of Indian footwear against suppliers from Vietnam, China and Indonesia. Exporters are reporting falling orders and increased pressure on profit margins.

Footwear is a labour-intensive industry with major production centres in Uttar Pradesh, Tamil Nadu, Rajasthan and West Bengal. A sustained downturn could lead to job losses and factory closures.

According to reports, the proposed support package may include tax relief, possible reductions in Goods and Services Tax, export incentives, easier access to credit and measures to support manufacturing upgrades. The government aims to limit long-term damage to exports and protect employment in the sector.


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