After US deal, leather sector looks to hire back workers laid off during uncertain times
Times of India | 4 February 2026
Kolkata: With the US slashing tariffs on Indian goods to 18% under the new India-US trade deal, Bengal's leather industry is gearing up for a possible hiring push as fresh export orders are expected to start coming in. The sector was forced to let go of some of its workforce after the US imposed the penal and reciprocal tariff of 50% on Indian products, leading to consignments being stalled and cancelled. The new hiring would include some of the employees who lost their jobs during uncertain times, said an industry insider.
"With orders drying up, we had to let go of some workers as it was hurting our margins. But the lowered US tariff on Indian products and the consequent hope for the return of business will lead to manufacturers hiring back," said Asif Rahman, a manufacturing unit owner in Bantala Leather Complex. Across Kolkata's leather clusters—Tangra, Beniapukur and Bantala—manufacturers expressed relief after months of pressure. Unit owners said the threat of steep duties eroded margins and forced them to scale back production.
Calcutta Leather Complex at Bantala, one of the largest leather hubs in the country, employs around 5,00,000 workers, with nearly 60% of them engaged in export-oriented production. Spread across 538 tanneries and over 4,000 manufacturing units, the complex drives about 50% of India's leather goods exports. Any revival in overseas demand is expected to have a direct impact on employment.
Ramesh Juneja, chairman of Council for Leather Exports, told TOI: "Capitalising on the new tariff deal, we expect export of leather goods from Bengal to the US to rise by at least 30%. Currently, our state contributes to 35% of leather goods exported to the US. This new tariff deal is a boost for the sector. We hope the export share will reach 50%," said Juneja.
Bengal already leads the country in leather exports, clocking Rs 5,600 crore, about 30% of India's total leather export value. Industry leaders believe the revised tariff structure will strengthen this position further. Zia Nafis, director of Nafis and Tanning Industries, said the long-awaited deal was a major relief. "Calcutta Leather Complex at Bantala, along with the eastern India leather sector, will benefit greatly as our competitors face higher tariffs. We expect exports in leather goods and industrial gloves to double," said Nafis.
Amit Gupta, an exporter, in Bantala, echoed the new tariff would help Indian products compete better with rivals in Bangladesh and Vietnam.