Trump tariffs may cut India's leather industry revenue by 10-12%: Crisil

Faced with US tariffs, India's leather and allied products industry are expected to see revenue decline 10-12 per cent this current fiscal, according to Crisil Ratings.

- TBG NETWORK

The 50% tariff (25% reciprocal tariff plus 25% penalty for purchase of Russian oil) imposed by the United States (US) on Indian goods will slash export volume, the rating agency said Thursday. Given the significant export concentration, the decline would be despite a moderate improvement in domestic demand following the rationalisation of Goods and Services Tax (GST), besides other favourable macroeconomic factors such as lower income taxes, benign inflation, and low interest rates, it is further observed. Operating profitability may slide 150-200 basis points (bps), primarily driven by headwinds in the export segment, and the muted operating performance will, in turn, weaken credit profiles.