EU zero-tariff boost for Indian leather and footwear
27/01/2026
Tariffs on leather and footwear, previously set at 17%, will now be reduced to zero, offering significant relief to the sector after US tariffs of 50% were imposed last year. The deal gives Indian manufacturers full access to the EU’s €84 billion leather and footwear market, with particular benefits expected for established clusters in Agra-Kanpur and Vellore-Ambur.
Industry observers say the move could increase formal employment and support the creation of new enterprises, while strengthening demand for mid- to premium leather goods. Producers are also expected to see benefits across the wider leather supply chain, including tanning, finishing, and footwear manufacturing, as the removal of tariffs makes Indian products more competitive on European shelves.
The agreement comes at a time when Indian exporters have been seeking alternative markets following punitive tariffs from the US, and it is seen as a major step in boosting trade ties with one of the world’s largest consumer markets.
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