No. CLE-HO/POL/CIRCULAR/26

Jan. 30, 2026

Members of the Council

Sub : India European Union Free Trade Agreement (FTA)

Dear Member

As you are aware, India and EU concluded their FTA negotiations on January 27, 2026. A Press Release and Fact Sheet issued by the Government on the FTA are enclosed herewith.

As per the aforesaid Fact Sheet, under the FTA, 70.4% tariff lines covering 90.7% of India’s exports will have immediate duty elimination for important labour-intensive sectors such as textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery and certain marine products, amongst others.

The detailed tariff schedules are yet to be notified. As mentioned in the enclosed FAQ, the agreement will come into force on first day of the second month following the date on which India and the EU exchange written notifications confirming completion of their respective internal legal procedures, or on any other date mutually agreed by the Parties. Till then, members can avail the existing GSP benefits. A statement showing normal (MFN) and GSP rates is enclosed herewith, for reference of members.

EU is the largest importer of leather, leather products and footwear, with an import value of USD 101.63 billion in 2024, accounting for a huge share of 37.22%, in the global import of USD 273.06 billion.

Data : 2024 : Billion USD
Chapter	Global Import	EU Import	India’s total export	India’s export to EU
Ch 41 (Leathers)	16.74	5.44	0.45	0.11
Ch 42 (Leather & Synthetic Products)	91.88	28.65	2.56	1.15
Ch 43 ( Fur & Fur Products)	3.31	0.78	0.01	0.00
Ch 64 (Footwear and Components)	161.13	66.77	2.50	1.11
Total	273.06	101.63	5.51	2.37

Source : ITC, Geneva

European Union has been the traditional major market for Indian Footwear and Leather Industry, accounting for a share of about 43% in exports from the sector.

During 2024, India’s export of India’s export of leather, leather products and footwear to EU was USD 2.37 billion having a market share of 2.33% in EU. Hence, there is a huge potential to substantially increase our exports to EU.

The India EU FTA with 0% for footwear and leather sector will open-up new opportunities and will help in achieving the envisaged export target of USD 14 billion by 2030.

This FTA will enhance the India – EU co-operation in footwear and Leather sector, not only in the area of sourcing but also in the area of investments.

Members may kindly note the above.

Thanks and regards

R. Selvam
Executive Director
COUNCIL FOR LEATHER EXPORTS

 

Press Release
EU Import Duty for Footwear and Leather Sector
Fact Sheet
FAQ