The Indian footwear and leather industry has welcomed the new India UK Comprehensive Economic and Trade Agreement as a major step forward. Leaders in the sector are calling it a timely and much-needed move that could reshape their trade future.
The deal offers duty-free access for Indian leather, leather products, and footwear into the United Kingdom. Industry representatives expressed their gratitude to Prime Minister Narendra Modi and Commerce Minister Piyush Goyal for making this happen.
UK is already the third-largest destination for Indian leather and footwear exports. In 2023-24, India exported goods worth 400.77 million US dollars to the UK.
This rose to 437.94 million US dollars in 2024-25, a 9.27% increase. The UK accounted for over 9% of total exports from India’s leather and footwear sector.
The India UK CETA is expected to offer several direct advantages to exporters including
Duty-free access in the UK for Indian leather products, with previous duties ranging from 2 to 8%.
Leather footwear which earlier attracted 4.5% duty, and non-leather footwear, taxed at 11.9%, will now enter the UK market with zero duty.
This will improve pricing, making Indian products more competitive in the UK.
The agreement aims to double exports to the UK in the next 2 to 3 years, targeting 1 billion US dollars in annual trade.
It also opens the door for collaborations in investment, technology sharing, and joint ventures between Indian and UK businesses.
Indian MSMEs stand to benefit from better exposure to global markets.
Additionally, India will allow duty-free import of finished and crust leathers from the UK. This will help Indian manufacturers create more value-added products using premium imported materials.
In conclusion, the India UK CETA is a positive development that could transform the Indian leather and footwear industry’s reach and competitiveness in one of its most important markets. It is expected to not only increase exports but also deepen ties with British companies, benefitting both economies.
Source – Council for Leather Exports
