IndiaUS trade deal to boost leather, footwear exports: CLE

New Delhi, Feb 3 (PTI) The Council for Leather Exports (CLE) on Tuesday said the announcement of the India–US trade deal after a free trade pact with the European Union will help boost exports as domestic products will become price-competitive in American markets.

Duties on India’s competitors are high.

Major countries that compete with Indian labour-intensive sectors in the global markets include China, Vietnam (20 per cent), Malaysia (19 per cent), Bangladesh (20 per cent), Cambodia and Thailand (19 per cent each).

On Monday, US President Donald Trump agreed to slash US tariffs on Indian goods to 18 per cent from 50 per cent in exchange for India lowering trade barriers as well as stopping its purchases of Russian oil and instead buying oil from the

US and potentially Venezuela.

The announcement of the India-US trade deal came on the heels of the conclusion of a free trade pact with the European Union last month. The India-EU FTA is expected to be implemented in this year.

CLE Chairman Ramesh Juneja said the combination of forward-looking budget measures and decisive trade diplomacy will significantly strengthen India’s export ecosystem.

“The twin trade agreements with the European Union and the United States provide much-needed stability and confidence to exporters at a time when global trade conditions have remained highly volatile,” he said.

The EU and the US together account for nearly 66 per cent of India’s leather and footwear exports, with 43 per cent going to the EU and around 23 per cent to the US.

“These two trade deals significantly strengthen India’s position in its most important export markets,” Juneja said, adding that since September 2025, Indian exporters have been facing severe headwinds arising from a rapidly changing geopolitical scenario, including increased pressure on trade flows due to India’s energy imports from Russia.

Exporters were compelled to offer higher discounts and operate on unsustainably thin margins, impacting both profitability and long-term competitiveness.

Juneja pointed out that during May to October 2025, the US concluded multiple trade agreements offering reciprocal tariff arrangements to competing exporting nations — 10 per cent to the UK, 15 per cent to the EU and Japan, 19 per cent to Indonesia, Malaysia, and Bangladesh and 20 per cent to Vietnam.

“With the India–US trade deal now in place, India stands at par with its global competitors, restoring a level playing field for Indian exporters,” he said.

India exported over USD 1.2 billion worth of leather and footwear products to the US in the previous year.

“This trade deal will help us at least maintain exports at last year’s level, despite global uncertainties. If India is able to conclude the agreement at zero reciprocal tariffs, exports to the US market could double within the next one to two years,” Juneja added. PTI RR HVA