Chairman Column
As you are all aware, exports from footwear and leather sector had shown consistent growth trends this year, registering 7.92% growth during April – August 2025, but has witnessed 6.11% decline in September 2025, thereby indicating the adverse impact of the 50% US reciprocal tariff on our exports.
Due to this tariff, more than 90% of our exports to USA (which was USD 1.26 billion in 2024-25) is affected. During our meetings with the Government and Hon’ble Ministers, we have sought the following support measures to enable the industry to diversify its exports and attract investments.
- Implementation of the Focus Product Scheme for footwear and leather sector announced in Union Budget 2025-26.
- Import duty exemption for bovine crust and finished leathers, as these leathers are predominantly imported as per buyer requirements.
- Changes in Import of Duty at Concessional rates of Duty scheme including extending the period for export from six months to one year and extending the scheme to shoe upper exporters etc.,
- Support measures to promote exports to USA namely Direct Benefit transfer support to the extent of 50% of salary and EPF support in terms of employer’s share atleast for six months, to enable employers to retain their workforce ; 5% transferable duty credit scrip similar to Merchandise Exports from India Scheme (MEIS) for exports to USA alone ; Implementing 5% Interest equalization scheme and Emergency Credit Line Guarantee Scheme (ECLGS) and Moratorium on repayment of principal and interest on existing loans of the exporters atleast for a period of one year.
Implementation of above measures are necessary to meet short term challenges and ensure long term growth. I hope that the Government will positively consider the above requests.
With best wishes
Rajendra Kumar Jalan
Chairman
COUNCIL FOR LEATHER EXPORTS