The recent tariff hike by the United States is threatening the momentum of India’s leather industry, putting thousands of jobs and exports in jeopardy.
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.
According to The New Indian Express, the impact could be severe in Tamil Nadu, where nearly 75,000 jobs in the leather sector are now at risk.
The state is a major hub for leather, footwear and leather goods exports and many companies are heavily dependent on the US market.
Industry sources say one of the leading leather and non-leather goods manufacturers, which relied on the US for over 80% of its business, has already shut down one plant and started job cuts.
On the other hand speaking to The New Indian Express, Malack Abdul Wahab, MD of KH Exports, said
“The tariff will hit the sector very hard, US buyers are already demanding discounts of up to 20% which they expect exporters to absorb. That is not viable, US brands have put new orders on hold until the dispute is resolved.”
Malack Abdul Wahab, MD, KH Exports
The industry fears that if the situation continues, exporters will face mounting pressure, leading to more closures and job losses in one of India’s most vital export sectors.
Related News: Finance Minister Assures Support to Indian Leather Industry Exporters Amid US Tariff Impact Says Israr Ahmed
