Fw: Agra's Footwear Industry in Crisis due to US Tariff
Sandeep Pandey
Agra's Footwear Industry in Crisis due to US Tariff
Dinkar Kapoor, State General Secretary, All India People's Front, Uttar Pradesh
From yesterday, the 25 percent additional tariff i.e. import duty imposed by the Trump government of America on India has come into effect. Earlier, the Trump government had imposed a 25 percent tariff on India. An additional 25 percent tariff has been imposed as a penalty for violating the condition of not buying oil from Russia. Agra's leather industry has fallen victim to a deep crisis due to this tariff. India used to export leather products worth 368.2 crore in 2020-21 to the whole world, which increased to 482.8 crore in 2024-25, an increase of 31 percent. Out of this, 64.5 crore was exported to America in 2020-21, which increased to 104.5 crore. This is an increase of 62 percent. In 2022-23, India exported leather products worth Rs.1.17 billion to the US. 20 percent of this only comes from the Kanpur-Unnao leather cluster of Uttar Pradesh and 20 percent comes from the Agra cluster. Agra has 15 large industries, 30 medium industries, 150 small industries and 10000 micro units of leather products in which more than 2 lakh people are employed. In 2022-23, more than Rs 370 crore worth of leather footwear was exported from Agra to the US, which came down to around Rs 260 crore in 2023-24. After the new tariff, it will not be possible to sell even footwear worth Rs 100 crore to the US.
There is an atmosphere of great panic among the leather entrepreneurs and labourers of Agra due to the US tariff. According to Puran Dawar, President of Footwear and Leather Industry Development Council and President of Agra Footwear Manufacturers and Exporters Chamber, this is the busiest time and peak season for Agra's export factories. Winter and autumn footwear is made during this period. Due to the imposition of this tariff, our goods are lying dumped. The cost of the orders we have received from America is also increasing a lot. If this situation remains, we will not be able to work. He is the owner of a company that manufactures 17000 products and employs 1500 workers. According to Nazir Ahmed, owner of Agra-based company Park Experts, which has an annual turnover of Rs 1000 crore, the American tariff is a disaster. He makes 400 to 500 designs and employs 800 employees. He says that if we do not get American orders, our factories will become useless and workers will become unemployed. According to him, the leather industry cannot bear the burden of even 12.5 percent tariff. In such a situation, forget about 50 percent tariff. He also says that due to the US decision to increase tariff rates, many buyers are now turning to China, Vietnam, Pakistan and Bangladesh which have lower tariff rates.
This tariff has created a crisis of new orders for entrepreneurs. Employment in this industry is under threat. They are facing problems in selling the goods and there is also a transaction dispute. Because their concern is deepening on where to sell the goods they have prepared. They had received orders before the imposition of 25 percent and now 50 percent tariff, after the imposition of this tariff, a big transaction dispute will also arise. According to Muktaarul Amin, President of Leather Sector Circle Council, this is a very labour-intensive industry. People get direct and indirect employment by making many products in it. He even says that it is the largest employment providing industry in the country. According to the Council for Leather and Export, the Indian leather production industry holds an important place in the country's economy.
Agra AFRAMEC President Gopal Gupta says that the government should bring an incentive scheme to ensure availability of funds at minimum interest rate and to compensate for loss of orders. In this regard, a delegation of leather industry businessmen from Agra and the country also met Piyush Goyal and requested him for government help in this crisis. The entrepreneurs demand that the government should support them in finding new markets, make incentive schemes for branding, the government should compensate for tariff losses, reduce the cost of raw materials and provide training for designing and efficiency so that they can survive in global competition. Not only this, other industries in the Agra region like Firozabad's glass industry, stone handicrafts and carpets, rugs, Zardoji are also facing a big crisis due to American tariff. Firozabad's glass industry used to export worth Rs 2000 crore, in which 50 percent of glass items were exported to America. After the new tariff, business worth about Rs 1000 crore will be affected. Similarly, 85 percent of stone handicrafts, carpet and rug industries were exported to America. Products worth Rs 300 crore were exported in carpets and rugs and Rs 300 crore was also exported in Zardoji and handicrafts, which will be a victim of this crisis.
Overall, today in India, in the era of American tariff and bullying, the question has arisen that we will have to strengthen our internal economy. The government will have to provide all possible help to small and medium industries, which are already victims of demonetization and GST. At the same time, instead of depending on the American or European market for the sale of our products, in which we put our economic sovereignty at stake, we will have to take our economy in the direction of increasing the purchasing power of the people to prosper our market as well.
28 August 2025
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National President,
All India Peoples Front