Donald Trump’s 50% tariff on Indian goods officially came into effect on 27 August 2025. The move is already impacting several export sectors including the Indian leather industry.
The Indian leather industry covers 8 sectors within such as finished leather, leather footwear, non leather footwear, leather goods, leather garments, leather gloves, footwear components, harness & saddlery.
The Indian leather industry reported exports worth $4.69 billion in FY 2023-24 which equals about INR 35,782 crore.
Among these exports, the United States alone accounted for $980 million nearly 20.90% of the total, making it one of the biggest markets for Indian leather.
Over the last 20 months, we have seen investments been pouring into the footwear sector especially in Tamil Nadu. Global investors have shown particular interest in investing in the non leather footwear sector of India.
The development also strengthens Tamil Nadu’s position as a global hub for footwear manufacturing and supports India’s ‘China+1’ strategy to attract international brands to shift production.
Farida Group, one of India’s largest footwear manufacturers, recently announced plans to invest INR 1,200 crore (about $140 million) to set up a new footwear factory in Tamil Nadu.
The company has also started producing the first batch of New Balance shoes in partnership with Taiwan’s CJ Enterprise.
Israr Ahmed, Director of Farida Group, spoke to Deccan Herald saying many exporters shipped goods early to avoid the tariff but the full impact will show later this year.
Ahmed also shared details of a recent meeting with Union Finance Minister Nirmala Sitharaman.
According to him, she assured the industry that the Government would step in with support similar to the relief measures offered during the COVID-19 crisis.
“She assured us that the Centre will take the necessary steps to support industries affected by US tariffs. She added that the assistance would be given to the affected exporters as was done during COVID pandemic when the Government came to help and support industries. It was a very reassuring meeting.”
Israr Ahmed, Director, Farida Group
The tariff shock comes at a time when India was building momentum in footwear exports with strong foreign investments. The industry now faces uncertainty as exporters brace for reduced orders, rising costs & job losses. The coming months will decide how resilient India’s leather & footwear sector will be against this new challenge.
