India’s exports of shoes and leather items reached $4.4 billion between 2024 and 2025, with the US alone buying $1 billion worth. According to a study in the Times of India, however, the country’s supremacy in the sector is fading as countries like Vietnam, China, Indonesia, Bangladesh, and Mexico take a growing stake.
The drop is directly related to the Trump administration’s 50% tariffs, which have hurt Indian exporters a lot.
Factories in Tamil Nadu Take the Most Damage
The repercussions are most obvious in the village of Periyavarigam in Ambur, Tamil Nadu, where at least 50 industries have collapsed since demand from the US has dropped. Tamil Nadu sends half of India’s leather exports to the US. Agra and Kanpur together provide another 70% of exports, which are mostly belts, purses, shoes, and wallets.
Change to Different Markets and Materials
Senthil Murugan, a technical specialist and raw material supplier for the leather sector, told TOI that manufacturers who still sell to Europe, which only charges 20% tariffs, are still in business. In contrast, most units that used to export to the US have closed down. Many shoemakers are now using different materials or moving their businesses to countries with lower tariffs, such Vietnam and Bangladesh.
Fighting for a Solution
US buyers are putting a lot of pressure on Indian suppliers to give them big discounts or cut back on orders, which is making things hard for factories. Some exporters are looking into other markets, like the UK, but most think there is no long-term solution in sight.
The Council for Leather Exports and the Federation of Indian Export Organizations (FIEO) have talked to Finance Minister Nirmala Sitharaman, but not much has changed.
The government should give FIEO the following:
A plan to equalize interest rates
More efforts to get into the market
Temporary help for exporters to the US
The group has said that without these steps, high tariffs could lead to a lot of job losses in India’s leather industry.