Leather dealers in Dharavi Mumbai are waiting for the Union Budget in February 2026 with high expectations. The cluster is under pressure as exports fall and costs rise.
Exporters say tariffs imposed during the Trump administration hurt demand for Indian leather goods. Small units in Dharavi say overseas orders have slowed sharply. Many are now relying more on domestic buyers but profits remain thin.
Traders want the budget to focus on lower raw material prices, stronger marketing support and export friendly policies. They say input costs have gone up while selling prices cannot rise much.
Manufacturers say higher costs force them to raise prices which makes their products less competitive at home and abroad. This affects demand for shoes, bags and small leather goods.
Traders are also asking for a cut in GST and easier access to loans. They say complex export rules and payment delays are adding to financial stress especially for small exporters.
Exporters want fresh incentives and simpler compliance for retail exports. They say this will improve cash flow for artisans traders and shopkeepers.
Dharavi’s leather industry now looks to the Union Budget for quick relief and clear steps that can support long term growth.
