New Delhi, Oct. 23 -- India's leather and allied products industry could see a revenue decline of 10-12% in FY26 due to steep US tariffs, according to Crisil Ratings.

The United States has imposed a 50% duty - comprising a 25% reciprocal tariff and an additional 25% penalty linked to India's Russian oil imports - on Indian goods, sharply denting export demand.

Crisil noted that despite moderate domestic recovery following GST rationalisation, lower taxes, benign inflation, and stable interest rates, export dependence remains a major challenge. Operating profit margins are expected to fall by 150-200 basis points, weakening the credit profiles of many players.

The agency analysed 34 firms accounting for 12.5% of the industry's Rs 56,000...