Leather dealers in Dharavi, Mumbai, are looking forward to the Union Budget in February, anticipating policies that could boost a sector that is struggling with declining exports and growing expenses.

The Trump administration's tariffs on Indian goods, according to exporters, have hurt foreign demand and made it harder for small manufacturers in Asia's biggest slum-based leather hub. Traders claim that their reliance on domestic consumers has grown as exports have decreased, but margins are still under pressure.

Among the main issues that traders want the government to address in the next budget are lower raw material prices, more robust marketing support, and export-friendly policies.

According to Mohammed Irfan Alam, a leather bag manufacturer: "All the workers are hoping that the government will announce some measures that benefit us. The rates of raw materials have increased; they should be brought down so that we can grow. When exports and imports increase, and when wholesalers buy more from us – only then will we grow, right? Exports have declined significantly... we used to depend a lot on exports."

Manufacturers claim that their products are becoming less competitive both domestically and internationally as a result of having to raise prices due to high input costs.

"What can we hope for? Raw material prices should be brought down, so that we can also sell shoes at lower rates – so that customers can afford them. If raw material rates remain low, then we will also be able to reduce prices. But if raw material rates increase then so will prices of shoes," the leather shoes manufacturer said.

Additionally, traders claim that a decrease in the Goods and Services Tax (GST) and easier access to credit would give the industry instant relief. Another important demand is the simplification of export regulations, especially for small exporters who face delays in compliance.

They argue that such measures would help improve cash flow across the value chain, benefiting artisans, traders and shopkeepers alike.

Another Leather Bag Manufacturer: Mohammed Kaleem Idrisi, "From this budget, we expect that the government will provide us some relief and reduce GST so that we can get some benefits. The wages of artisans and craftsmen should also increase, so that they also get some relief."

Exporters say procedural hurdles are adding to their financial stress, especially when it comes to clearing payments.

"Our expectation from the government first of all is that some export incentives should be introduced. The compliance burden on retail exports should be simplified, so that retail exporters like me don’t have to keep going to banks to clear pending payments. Secondly, our demand is that the government should do something for us so that we can get access to easier loans and thea leather products exporter,r us.." Mohammed Moeeen Ansari, Leather Products Exporter said.

Dharavi's leather vendors say they are looking to the Union Budget for specific initiatives that can both offer short-term relief and set the stage for the industry's long-term expansion.