Chennai, Oct 23 (UNI) India’s leather and allied products industry is set to see a 10–12 pc year-on-year revenue decline in FY26 as the 50 pc tariff imposed by the United States, comprising a 25 pc reciprocal duty and an additional 25pc penalty for Russian oil purchases, slashes export volumes, Crisil Ratings said in a report on Thursday.

The fall in exports will persist despite improved domestic demand following GST rationalisation, lower income taxes, benign inflation, and soft interest rates, the agency noted. According to the report, operating profitability is expected to decline by 150–200 basis points, weakening credit profiles across the sector.

Given the significant export concentration, the decline would be despite a moderate improvement in domestic demand following the rationa

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