The 38th edition of the Indian International Leather Fair (IILF) at Chennai from 1–3 February was one of the most dynamic and well-attended editions in recent years. The event not only showcased cutting-edge innovations in the leather industry but also witnessed a surge in participation, largely driven by recent policy changes announced in the Union Budget 2025-26.
Budget relief: There was a sense of almost euphoria as the budget announced, concurrent with day one of the fair, duty exemptions and export benefits, providing significant momentum to the sector.
The removal of duties is expected to significantly ease operational costs and boost export competitiveness. The reforms should generate opportunities for innovation, growth and global market expansion.
Industry & Exhibitors: More than 450 companies from India, including about 130 exhibitors from abroad displayed their products—from raw material to finished and auxiliary products.
The leather fair provided a comprehensive outlook on the industry’s trajectory, underscoring the impact of supportive government policies, sustainability-driven innovations, and technological advancements. The sector is poised for significant growth, with businesses adapting to changing consumer demands and regulatory shifts.
For industry leaders and manufacturers, embracing sustainability, automation, and customisation will be key to staying competitive in the evolving global market. The fair reaffirmed that the leather industry is not only innovating but also redefining its future with a strong focus on efficiency, quality, and sustainability.
Some key industry insights from this edition:
1. Policy reforms: A catalyst for growth
One of the primary reasons behind the increased engagement at the fair was the Union Finance Minister Nirmala Sitharaman’s decision to waive basic customs duty on wet blue leather and remove the 20% export duty on crust leather. These measures have been widely welcomed by industry stakeholders, particularly small and mid-sized tanneries, as they enhance global competitiveness and ease trade restrictions. Duty on finished leather remains unchanged.
Industry experts anticipate that these reforms could drive leather exports from ₹3,000 crore to ₹8,000 crore in the coming years, with key manufacturing hubs such as Tamil Nadu expected to experience significant growth.
2. Sustainability as the driving force
Sustainability was the dominant theme at the fair, reflecting the industry’s commitment to environmentally responsible practices. There was a noticeable shift towards chrome-free, vegetable, and water-based tanning techniques, along with increased interest in bio-based and recycled leather. These innovations highlight the sector’s ongoing efforts to reduce its environmental impact while maintaining high-quality standards.
Additionally, traceability solutions gained considerable attention, with companies introducing blockchain-based tracking systems that enable brands to verify the origin and sustainability credentials of leather materials.
