India's leather and footwear industry is seeking import duty exemptions on key raw materials, machinery and components as the ongoing Middle East crisis drives up input costs. Industry representatives have approached the commerce and industry ministry, warning that the prices of several essential inputs have risen by 40 to 60 percent due to supply disruptions.

A major concern is the disruption of oil and gas shipments following Iran's closure of the Strait of Hormuz. Since many products used in footwear manufacturing, including synthetic leather, rubber chemicals, adhesives, plastics and shoe soles, are petroleum-based, rising energy costs have sharply increased production expenses. The industry also depends on imports from countries such as China, South Korea, Indonesia and Japan for critical materials.

The sector has urged the government to extend duty-free imports to crust and finished leather and to expedite a proposed transformation scheme covering the entire leather and footwear value chain. While imports and exports have both recorded year-on-year declines, industry estimates suggest overall outbound shipments could improve when non-leather goods are included, though they remain below previous peak levels.