Leather exporters get relief in Union Budget 2026
What's the story
In a bid to boost India's leather exports, Finance Minister Nirmala Sitharaman has proposed duty-free imports of certain specified inputs in Union Budget 2026. The move is aimed at providing relief to leather exporters who are currently facing the brunt of high 50% tariffs imposed by the US. Sitharaman also exempted parts used in manufacturing microwave ovens from basic customs duty.
Export performance
Duty-free imports to cushion leather export decline
India's leather and leather products exports have seen a marginal decline of 0.23% to $3.3 billion during the April-December period of 2025-26. The proposed duty-free imports are expected to cushion this fall and help boost the sector's performance in international markets.
Policy change
Extended export timeline for final products
Sitharaman also proposed extending the export timeline for final products from six months to a year. This change is specifically aimed at exporters in the leather and textile garment sectors, giving them more time to complete their exports. The move is likely to ease some of the pressures on these sectors and improve their global competitiveness.