New Delhi – In a significant move to enhance the productivity, quality, and global competitiveness of India’s leather and footwear sector, Finance Minister Nirmala Sitharaman announced new policy measures during the Budget 2025 presentation on February 1, 2025.
The government is set to introduce a Focus Product Scheme, which will provide targeted support to boost key aspects of the industry. The scheme will focus on:
- Enhancing design capabilities to foster innovation in the sector
- Developing component manufacturing for improved supply chain efficiency
- Upgrading machinery requirements to modernize production processes
Apart from its emphasis on non-leather footwear production, the scheme will also provide substantial support to leather, leather footwear, and leather product manufacturing in India.
In a move welcomed by industry stakeholders, the government has removed the 20% export duty on crust leather and the 10% import duty on wet blue leather and made it NIL.
This policy shift is expected to revitalize the tanning sector and promote the export of value-added leather products, making Indian manufacturers more competitive in the global market.
The newly introduced measures are anticipated to generate employment opportunities for 22 Lakh (2.2 million) people while driving industry revenues to new heights.
The financial projections from these reforms include:
- Over ₹4 lakh crore ($46.12 billion USD) in total revenue generation
- Exports worth ₹1.11 lakh crore ($13 billion USD) in the leather and footwear sector
“The leather and footwear sector wholeheartedly thanks Hon’ble Prime Minister Shri Narendra Modi, Hon’ble Minister for Commerce & Industry Shri Piyush Goyal, and Hon’ble Minister of Finance Smt. Nirmala Sitharaman for announcing the Focus Product Scheme for our industry in the Union Budget 2025-26.”
Council for Leather Exports (CLE)
