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Kanpur Leather Industry Revives as US Cuts Tariff, Europe Deal Opens Doors

Kanpur's leather industry is experiencing a significant revival following a US decision to reduce a steep 50% tariff and a new trade agreement with Europe. The sector had faced severe disruptions, with idle machinery, heavy financial losses, and widespread layoffs after the tariff was imposed. Industry representatives describe the dual developments as a "double boost" that will help regain the US market and generate fresh European orders. They credit diplomatic efforts for securing favorable terms, paving the way for a full recovery.

Key Points: US Tariff Cut & Europe Deal Boost Kanpur Leather Industry

  • US reduces 50% tariff on leather
  • New trade agreement with Europe
  • Factories restarting and recalling workers
  • Industry recovering from severe crisis
2 min read

Double boost for Kanpur leather units as US cuts tariff, Europe deal opens doors: Industry representatives

Kanpur's leather sector revives as US reduces 50% tariff and new Europe trade deal brings a "double boost," restarting factories and recalling workers.

"Due to the diplomatic efforts of the Prime Minister, India has now moved ahead of other countries... - Ashad Iraqi"

Kanpur, Feb 4

The leather industry in Kanpur has received significant relief following the India-US agreement, and United States' decision to reduce the 50 per cent tariff, with export activity showing early signs of revival and production resuming in several factories across the city.

Industry sources said that operations, which had remained largely suspended for months, are gradually restarting, and workers who were laid off during the slowdown are being recalled in phases.

Following the imposition of the steep tariff, exporters had faced severe disruptions as machinery worth crores of rupees remained idle and consignments meant for the US market accumulated in warehouses. Many exporters were compelled to sell finished goods at heavy discounts, resulting in substantial financial losses and forcing several units to shut down production and reduce manpower.

With the tariff cut now in place and a new trade agreement with Europe, exporters are describing the development as a "double boost". Industry representatives believe the move will help India regain access to the US market while also generating fresh orders from Europe, paving the way for a full recovery of Kanpur's leather sector.

Ashad Iraqi, Regional Chairman of the Council for Leather Exports (CLE), said the industry had been going through a severe crisis since August, when the 50 per cent tariff was imposed and business had nearly come to a standstill.

"Due to the diplomatic efforts of the Prime Minister, India has now moved ahead of other countries and will be working with the US on the best tariff terms. This will mark the beginning of growth for the leather industry," Iraqi said.

Nurulla RC, General Secretary of the Leather Industry Welfare Association, said the situation has undergone a complete turnaround.

"We were extremely disheartened earlier, but with the support of the government, the overall scenario has now changed," he said.

Mukhtarul Amin, Chairman of the Super House Group, said exports had virtually stopped after the tariff hike but are expected to resume following the reduction.

"With the Prime Minister's efforts, India now enjoys the lowest tariff compared to other countries, which will strengthen our market. We are deeply grateful for this support," Amin said.

- IANS

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Reader Comments

P
Priya S
As someone from UP, I've seen the struggles of these workers firsthand. My uncle's factory had to let go of half its staff. This tariff cut is a huge relief. Hopefully, the recalled workers get their full dues and job security this time.
M
Michael C
While the positive outcome is welcome, we must ask why our industries are so vulnerable to external tariff shocks. We need long-term strategies and diversification of markets, not just last-minute diplomatic saves. The financial losses described here are staggering.
R
Rohit P
Europe deal too? Wah! This is a proper double engine ki sarkar moment for Kanpur leather. Our quality is world-class, we just need a level playing field. Jai Hind!
S
Shreya B
Good step, but the article only talks about owners and representatives. What about the workers' perspective? Were they compensated during the months of shutdown? Recovery should be inclusive and fair to the people who actually make the products.
K
Karthik V
This is why strong foreign policy matters for the common man. It's not just about geopolitics, it's about jobs in Kanpur, Agra, Chennai. Hope other sectors get similar focus. The leather industry is a heritage for us.

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