India, May 21 -- India's footwear and leather industry has long remained one of the country's largest employment-generating export sectors, supplying products across the US, Europe, the Middle East, and emerging global retail markets. The sector sits at the intersection of manufacturing, retail consumption, exports, and discretionary spending, making it highly sensitive to global economic cycles. That sensitivity is once again becoming visible.

India's leather, leather products, and footwear exports declined 1.6% year-on-year to nearly $4.75 billion, reflecting weaker demand conditions across key international markets. Slowing discretionary spending in the US and Europe, inflationary pressure on consumers, and inventory corrections among...