Centre Eases Export Norms for Leather Industry to Boost Business

New Delhi: In a major push to enhance ease of doing business for leather exporters, the Directorate General of Foreign Trade (DGFT) on Monday issued a notification removing key procedural restrictions on the export of value-added leather products.

According to the Ministry of Commerce, this reform is expected to significantly reduce compliance burdens and streamline export processes for the leather sector.

One of the major changes includes the removal of port restrictions. Exporters can now ship Finished Leather, Wet Blue Leather, and EI Tanned Leather from any port or Inland Container Depot (ICD), as opposed to the earlier rule that confined such exports to designated ports.

Additionally, the mandatory testing and certification by the Central Leather Research Institute (CLRI) for the export of Finished Leather, Wet Blue Leather, Crust Leather, and EI Tanned Leather has been scrapped.

These procedural requirements were initially introduced to monitor the export of value-added leather and distinguish it from raw hides and duty-liable items. However, with the removal of export duties on these leather categories and the clear physical differentiation between raw and processed leather, the ministry deemed these checks unnecessary.

The decision comes after extensive consultations with key stakeholders, including the Council for Leather Exports (CLE), leather exporters, and the CLRI. It is expected to lower transaction costs, simplify processes, and especially benefit MSME exporters.

These policy reforms also align with India’s broader strategy to enhance its export competitiveness in the global leather value chain while ensuring transparency and quality through general customs regulations.

India’s leather and non-leather footwear exports have surged nearly 25% in FY2024–25, reaching $5.7 billion. The industry is projected to cross the $6.5 billion mark in the current fiscal (FY2025–26), according to the CLE.

The sector, which is highly labour-intensive, employs approximately 4.2 million people. With a total industry turnover of $19 billion, exports alone account for $5 billion.

With inputs from IANS