Tariffic turn for MP’s toy story, deal stitches hopes for footwear makers

Indore: The reduction of US reciprocal tariffs on Indian goods to 18 per cent from the earlier 50 per cent is expected to revive export sentiment across Indore's traditional leather sector, particularly the city's globally recognised leather toy segment that witnessed slowing overseas orders in recent years.Indore's GI-tagged leather toys, including handcrafted life-sized elephants, giraffes, horses, tigers and black panthers, have long catered to galleries and premium décor markets in the United States and Europe, which remain the principal global markets for such products.Leather toys are among a handful of Madhya Pradesh items to receive geographical indication status, though the segment gradually lost market share amid rising competition and a sharp decline in domestic production.Indore-based exporter Suber Rampurwala said the tariff reduction could help revive buyer interest after a prolonged slowdown."At 50 per cent tariff, there were virtually no buyers. With duties now at 18 per cent, we at least anticipate some revival in demand. However, the volume of leather toys declined sharply in recent years in the city," he said.According to the Federation of Indian Export Organisations (FIEO), leather products from Indore, Ratlam and Hoshangabad, including footwear, accessories and finished leather, are well placed to convert renewed US enquiries into long-term export contracts, as lower tariffs reduce landed costs and improve buyer confidence.Indore's footwear industry, estimated at Rs 250–300 crore, is also expecting renewed traction from overseas markets. Footwear manufacturers said the trade deal may encourage them to tap into new markets.Industry players said improved price competitiveness could support fresh enquiries, better capacity utilisation and gradual recovery in export volumes from central India's leather manufacturing base. However, exporters cautioned that sustained gains will depend on quality compliance, scale and consistent global demand.Still, the tariff reset is being viewed as a potential turning point for labour-intensive leather toys and footwear manufacturing in Madhya Pradesh to regain visibility in the US market and stabilise export-linked employment.(TOI will run a series of reports on impact of US-India trade deal on various industrial sectors in Madhya Pradesh)