How is the Centre Enhancing Business for Leather Exporters?
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Synopsis
The removal of procedural restrictions for leather exporters by the DGFT marks a significant leap towards improved business conditions. This reform is set to boost the leather industry, enhancing export capabilities while reducing costs, thereby benefiting MSME exporters and contributing to India's economic growth.
Key Takeaways
- Removal of procedural restrictions for leather exports.
- Export of leather products can now occur from any port.
- Testing and certification requirements by CLRI are abolished.
- Expected growth in leather exports to exceed $6.5 billion.
- Positive impact on MSME exporters and job creation.
New Delhi, May 26 (NationPress) The Directorate General of Foreign Trade (DGFT) announced a notification on Monday aimed at eliminating significant procedural barriers related to the export of value-added leather products.
This initiative is anticipated to ease the compliance burden and enhance the ease of doing business for exporters, as per the Ministry of Commerce.
Port restrictions have been lifted, permitting the export of Finished Leather, Wet Blue Leather, and EI Tanned Leather from any port or Inland Container Depot (ICD).
Previously, these exports were confined to certain designated ports. Additionally, the obligatory 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 removed.
These procedural measures were initially introduced to oversee the export of value-added leather products and to differentiate them from raw hides and dutiable items.
However, with the abolition of export duties on these leather categories and the clear physical distinction between processed and raw leather, the current checks were deemed unnecessary, stated the ministry.
This decision follows discussions with stakeholders, including the Council for Leather Exports, leather exporters, and the CLRI. It is expected to streamline export processes, lower transaction costs, and particularly benefit MSME exporters.
The reforms also bolster India’s ambitions to improve export competitiveness in the global leather value chain while ensuring transparency and quality standards under general customs regulations.
India's leather and non-leather footwear exports have experienced a remarkable increase of nearly 25 percent in the 2024-25 financial year (FY25), totaling $5.7 billion.
The industry is projected to exceed the $6.5 billion mark in the current fiscal year (FY26), according to the Council for Leather Exports (CLE). The CLE, representing footwear exporters, noted that demand from both developed and developing nations remains robust, contributing to this impressive growth.
The footwear industry is labor-intensive, providing employment to around 42 lakh people. With a total turnover of $19 billion, the sector includes $5 billion in exports.
Point of View
The recent reforms initiated by the Directorate General of Foreign Trade are a commendable step towards enhancing the competitiveness of India’s leather industry. By eliminating outdated barriers, the government is promoting a more conducive environment for exporters, thus fostering economic growth and supporting local MSMEs.
NationPress
08/06/2025
Frequently Asked Questions
What changes were made to the export procedures for leather products?
The DGFT removed key procedural restrictions, allowing exports from any port and eliminating the requirement for testing and certification by the CLRI.
How will these changes benefit MSME exporters?
These reforms will streamline export processes, reduce transaction costs, and enhance the overall ease of doing business, particularly benefiting MSME exporters.
