Commerce Minister Piyush Goyal has set a target to double the current leather export to the UK of USD 494 million to nearly USD 1 billion by 2027 after the India-UK Comprehensive Economic Trade Agreement (CETA) comes into effect from 15 July 2026. It may be difficult to achieve despite the India–UK trade deal, according to one of the country’s leading leather exporters.
Thakur Singh, the Chief Financial Officer of Gupta H.C. Overseas, a leading leather exporter to the UK, has pushed back and said that it is unlikely that we will hit the USD 1 billion target by 2027. He said, “In one year, definitely, you cannot double the capacity, none of the factories are prepared to double the capacity in a year”.
The India–UK CETA has officially entered into force on 15 July 2026, making it one of India’s most significant bilateral trade agreements after those with the UAE, Australia, and EFTA. It has completely eliminated tariffs on leather goods, from up to 16 per cent to zero, on marine products from 20 per cent to zero, and on textiles from 12 per cent to zero, and has significantly reduced tariffs on processed foods, engineering goods and chemicals.
Are Indian Exporters Ready To Capture This Opportunity?
While this trade agreement brings immense opportunity for the Indian manufacturers to boost their exports and capture more of the UK market, the real question is: are they really prepared? K.N Raghavan, the CEO of Seafood Export Association of India (SEAI) said that the exporters are ready and fully aware about this opportunity. He said, “Requirements for export to the UK are the same as those in place for the EU. Exports of seafood from India to EU had touched USD 1.4 billion last year; therefore, Indian exporters are well versed with the technical requirements and certifications required for accessing these markets”.
Ananya Addy, the Vice President – Marketing & Design at Crescent Expo Syndicate, a leading manufacturer and exporter of leather fashion goods said while the large exporters are ready, the small exporters may need more support in understanding the procedures. But she was optimistic, asserting that many smaller exporters will be ready sooner than expected.
She said, “The larger exporters are generally well prepared because we’ve been working with international brands for years and already meet most compliance requirements. For smaller exporters, there will be a learning curve. They may need more support with documentation, certifications and understanding the procedures. That said, Indian entrepreneurs are quick to adapt, and I’m confident many of them will be ready sooner than expected”.
How Much Growth Can India Expect After This Trade Agreement?
Although industry executives differ on the pace of growth, most expect exports to rise as lower tariffs improve competitiveness. India’s marine exports to the UK were approximately USD 125 million in FY26, which was around 20 per cent more than the USD 103 million recorded during FY25, although this was before the CETA.
Noting this trend, K.N Raghavan said, “It will be difficult to predict with any amount of accuracy how much the exports will grow, however, the 20% growth achieved last year provides a good base to work on to see the success. I am confident that exports will grow by at least 40-50% this year after the FTA comes into effect”. Singh said, “We are expecting the increase, but it is not like it is going to double or something like that, it is going to be a reasonable increase about 15-20 per cent, it will get doubled to USD 1 billion, but it will take time, unlikely by 2027”.
What Is The Biggest Obstacle In Capturing This Opportunity?
The opportunity seems impressive, but there are certain underlying challenges like design capabilities, consistent quality, sustainable manufacturing, transparency and dependable delivery that Indian manufacturers have to deal with. Ananya said, “The opportunity is certainly there, but tariffs alone won’t guarantee success. Buyers today are looking beyond price. They expect strong design capabilities, consistent quality, sustainable manufacturing, transparency and dependable delivery. I believe the biggest challenge is ensuring that the entire industry, not just the larger exporters can meet these global expectations consistently”.
The UK buyers don’t just want a good product at the right price—they want visibility into the entire process. They expect clear information on sourcing, compliance, quality standards, sustainability practices, and even regular production updates. She added, “For many MSMEs, the challenge isn’t a lack of capability, it’s having the resources and infrastructure to document and demonstrate everything buyers now ask for. Many are already doing good work, but they need stronger systems, better documentation, and support to showcase it effectively”.
According to her, that’s where the industry needs to focus. If more exporters build these capabilities, India won’t just be competitive because of lower tariffs—it’ll be recognised as a reliable, transparent, and trusted sourcing destination for global brands. India is well positioned to become an even stronger sourcing destination for the UK and other international markets if exporters can consistently meet global standards.