Govt removes key leather export hurdles; port restrictions, CLRI testing scrapped
The Directorate General of Foreign Trade (DGFT) has removed key restrictions on leather exports to make the process easier and faster. Finished leather, wet blue leather, and El tanned leather can be exported from any port or Inland Container Depot (ICD), as per a government notification.
Also, the Central Leather Research Institute (CLRI) has eliminated the mandatory testing and certification for these products, as per the DGFT order.
Earlier, exporters could only ship these leather products through a few select ports, and CLRI had to clear all shipments to confirm they were processed leather, not raw hides or other materials. But since export duties were removed and it's now easier to distinguish processed leather from raw material, the government decided that these checks were no longer needed.
This change is aimed at helping small and medium enterprises (SMEs), which often faced higher costs and delays because of port limits and testing requirements. Industry groups like the Council for Leather Exports and the CLRI were consulted before this decision. Exporters have long said these rules added costs and slowed shipments without improving quality or compliance.
'This is a big relief for leather exporters and MSMEs operating from smaller ports or industrial areas. It will reduce costs, simplify paperwork, and help India stay competitive in the global leather market,' said Vinod Kumar, president of the India SME Forum.
General customs rules will still apply to ensure quality and traceability, but removing the special testing will speed up exports. As per the notification, this fits the government's goal of making exporting easier and boosting India's trade.
India is one of the top exporters of value-added leather products worldwide, and this move is expected to boost the sector as global supply chains change. Exporters sending goods to the US—one of India's biggest markets for leather products—stand to gain the most. Faster clearances and fewer rules will help Indian exporters meet US demand quickly, lower costs, and compete better with other countries.
India's leather and leather product exports have shown strong growth in recent years, rising from $2.91 billion in FY23 to $4.28 billion in FY24, and reaching $4.36 billion in FY25, according to commerce ministry data.
US remains one of the largest markets for these products, with exports valued at $948.47 million in FY25, up from $835.54 million in FY24, though slightly lower than the $1.09 billion recorded in FY23.
This trend highlights the sector's growing global demand and the potential benefits of the government's latest move to ease export restrictions and cut compliance costs.
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