CHENNAI: Tamil Nadu has attracted over Rs 9,800 crore in leather and non-leather footwear investments in the last three years, generating more than 1.25 lakh jobs, R Selvam, executive director of the Council for Leather Exports (CLE), said on Friday.
Detailing the investment flow, Selvam said projects are spread across Panapakkam, Kallakurichi, Ariyalur, Perambalur and Tindivanam, covering both leather and non-leather footwear manufacturing. While some units have already commenced production, others are scheduled to begin production in 2026.
Addressing concerns over factory closures, he said the Ambur-Vellore belt continues to function well. "Ambur and Vellore region continues to be functioning well when it comes to leather and non-leather factories," he said, adding that the region remains a key base for the sector.
Speaking at a press conference to announce the 39th India International Leather Fair (IILF) 2026, CLE chairman Ramesh Juneja said the India-European Union Free Trade Agreement (FTA) would strengthen export prospects for the sector. The agreement is likely to come into effect within eight to ten months, subject to ratification by the UK and the European Parliament. The EU currently accounts for around 43 per cent of India's leather and footwear exports, and the FTA is expected to improve market access and investment sentiment.
The CLE says that India's leather and footwear exports stood at $4.83 billion in 2024-25, excluding certain non-leather footwear segments, and about $5.5 billion when non-leather footwear is included. Exports in the current financial year are expected to remain in the $5-5.25 billion range, with limited impact from US tariffs as only about 22 per cent of exports are US-bound.
They have sought further simplification of import procedures for crust and finished leather, requesting a return to the pre-2021 zero-duty import regime. Juneja said that while the Centre has already removed export duty on crust leather and import duty on wet blue leather, the industry is seeking similar relief for crust and finished leather, which would reduce input costs, ease compliance and support value-added exports. The council said the proposed changes are critical for sustaining export growth and attracting further investments.
The CLE also announced the 39th India International Leather Fair (IILF) 2026, scheduled to be held at the Chennai Trade Centre from February 1 to 3. CLE regional chairman (South) M Abdul Wahab said the event will also feature a concurrent Designer Fair, offering Indian manufacturers opportunities for design collaborations.