Indian Leather & Footwear Industry Gets Competitive Edge With Indiauk Trade Pact

(MENAFN- KNN India) New Delhi, July 25 (KNN) India's leather and footwear industry is set for significant expansion in the wake of the Comprehensive Economic and Trade Agreement (CETA) signed between India and the United Kingdom.

The agreement offers duty-free market access to 99 percent of Indian exports to the UK, marking a significant turning point in bilateral trade relations.

The elimination of tariffs-previously as high as 16 percent-on leather goods and footwear is expected to enhance the global competitiveness of Indian manufacturers, particularly small and medium enterprises (SMEs) operating in traditional export hubs such as Agra, Kanpur, Chennai, Kolhapur, and Kolkata.

With the UK being a major importer of high-quality fashion and leather products, the agreement is expected to unlock new demand and improve pricing power for Indian exporters.

The leather and footwear sector, one of India's most labour-intensive industries, is expected to benefit from improved margins, increased orders, and greater integration into global value chains.

Government projections estimate that exports to the UK could exceed USD 900 million within the next few years, potentially placing India among the top three suppliers in the segment.

The deal is projected to increase India's share in the UK market by up to 5 percent within one to two years.

Commerce and Industry Minister Piyush Goyal underlined the sector's significance in India's broader trade strategy.“This agreement provides critical support to traditional industries like leather and footwear, which employ large numbers of artisans and skilled workers. It ensures inclusive growth by empowering MSMEs, women entrepreneurs, and youth-led enterprises,” he said.

Beyond tariff relief, the agreement simplifies technical standards, facilitates customs procedures, and ensures protection for geographical indications (GI) - a move that is expected to help local manufacturers distinguish their products in international markets.

Design-driven and sustainable production practices are also being encouraged under the agreement, creating new incentives for Indian fashion and footwear firms to expand their presence in the UK.

(KNN Bureau)

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