Oct 31, 2025
India restores import duty exemptions for leather export inputs
The India government has made a strategic move to bolster the leather and leather-goods manufacturing sector: through Notification No. 45/Customs (issued on October 24) the country reinstated import duty exemptions for key inputs used in manufacturing leather garments, footwear and accessories. Fibre2Fashion These exemptions – which had lapsed since April – are now effective until March 31 of the coming fiscal year. Fibre2Fashion+1
Why this matters
For exporters of leather garments, footwear and accessories, input costs are a major design-and-production consideration. With the duty break in place, inputs such as wet blue leather, crust and finished leather, buckles, zips, soles, linings and fittings can be imported at nil customs duty when destined for export use. Fibre2Fashion
The timing is especially relevant: demand for Indian leather goods has been pressured, in part due to the reciprocal tariff regime being employed by the United States — meaning Indian exporters are navigating an environment of weaker external demand. Fibre2Fashion
By removing duty burdens on inputs, the government is sending a signal of support to the sector: cheaper imported raw materials can mean more competitive export pricing, improved margins or reinvestment opportunities in higher-value goods.
Wider sectoral context
While exact growth figures were not provided in the notice, it is noted that India’s leather apparel and accessories exports had risen in the Jan-Jul period (though the specific percentage was not given in the report). Fibre2Fashion
Such export upticks — combined with this renewed duty relief — can help India strengthen its global positioning in leather goods manufacturing. Also worth noting: previous schemes have allowed duty-free or concessional input imports for leather and textile export production. leatherindia.org+1
Opportunities & implications
For exporters: This exemption offers immediate relief on input cost, enabling faster turnaround, potential expansion of capacity, and margin improvement.
For new entrants / SMEs: Lower cost barriers may make it more feasible to compete. Especially relevant for smaller manufacturers focused on niche or high-value products.
For design & innovation: With cost pressures eased slightly, brands may redirect savings into design upgrades, higher craftsmanship, or sustainability investments.
For policy watchers: The move signals the government’s awareness of export headwinds and willingness to intervene to maintain competitiveness.
Strategic take-aways for the leather design community
Leverage the duty-free input window: Manufacturers of leather garments or accessories should audit their supply-chain to identify imported components eligible under Notification 45/Customs.
Focus on export-oriented production: As the exemptions apply specifically for inputs used in manufacturing for export, aligning production plans accordingly can unlock the benefit.
Design differentiation advantage: With input cost pressures reduced, invest in unique design, value-added features or sustainability credentials — positioning Indian leather goods beyond purely price-based competition.
Monitor expiry & renewal: The exemption runs until March 31 — manufacturers must plan procurement timelines, inventory, and production scheduling around this window.
Integrate export-demand trends: Even with cost relief, global demand is not guaranteed. Combining cost advantages with strong design, branding and market intelligence will be key.
Conclusion
The reinstatement of import duty exemptions through Notification No. 45/Customs is a timely boost for India’s leather goods manufacturing ecosystem — especially as exporters face softer demand and global tariff pressures. By lowering the cost of key inputs used in export-oriented leather apparel, footwear and accessories, the policy opens a window of competitive advantage. For manufacturers, designers and exporters alike, now is the moment to capitalise: refine supply-chains, innovate in design and align production for export markets. With thoughtful execution, this policy can catalyse growth, support margin recovery and strengthen India’s global position in leather goods exports.
