In 2022-23, leather footw1ear worth over ₹370 crore was exported to the US. Exports dropped to ₹260 crore in 2023-24, and industry leaders now fear it could fall below ₹100 crore this year
AGRA — The footwear and leather industry in the Uttar Pradesh city of Agra is facing a severe crisis after the United States imposed an additional 25% import tariff on Indian goods, taking the total duty to 50%. The move is seen as a penalty for India’s continued purchase of oil from Russia.
In a statement on Friday, Dinkar Kapoor, State General Secretary of the UP chapter of All India People’s Front, said Agra, a major hub for leather products, exports goods worth hundreds of crores annually. In 2022-23 alone, leather footwear worth over ₹370 crore was exported from Agra to the US. But the figure dropped to ₹260 crore in 2023-24, and industry leaders now fear it could fall below ₹100 crore this year.
“This is peak season for winter footwear exports, and our goods are stuck. With a 50% tariff, American buyers will turn to countries like China, Vietnam, Pakistan and Bangladesh,” said Puran Dawar, President of the Agra Footwear Manufacturers and Exporters Chamber.
The Agra leather cluster includes 15 large factories, 30 medium units, 150 small units, and 10,000 micro-units, employing over two lakh workers. According to industry veterans like Nazir Ahmed, who runs a company with 800 employees and a ₹1,000-crore turnover, the sector cannot survive even a 12.5% tariff, let alone 50%.
The impact is not limited to leather. Firozabad’s glass industry, which exported ₹2,000 crore worth of goods annually — half of it to the US — expects losses of ₹1,000 crore. Handicrafts, carpets, and Zardozi work from the region are also hit.
Industry leaders have urged the government to step in with incentive schemes, cheaper credit, branding support, and help in finding new markets. A delegation of exporters recently met Commerce Minister Piyush Goyal to seek relief.
Experts warn that over-reliance on US and European markets makes India vulnerable to such shocks. They argue that the government must boost domestic purchasing power and support small and medium enterprises to strengthen the internal economy.
