The MSME (Micro, Small, and Medium Enterprises) leather goods sector in India plays a pivotal role in driving economic growth, employment generation, and regional development, with its vast potential, this sector also holds significant implications for sustainability and stability within the country. The research explores the environmental, social, and economic impacts of the leather goods industry, focusing on how MSMEs contribute to both sustainable practices and the stabilization of local economies. The sector faces challenges related to waste management, resource consumption, and environmental pollution, while on the other, it has made strides in adopting cleaner production technologies, waste recycling, and ethical sourcing. The findings suggest that fostering innovation and green practices within MSMEs can improve the ecological footprint of the leather industry, while ensuring long-term economic stability. The sector's growth, through the promotion of small-scale enterprises, further enhances inclusive growth and social equity. ThI study highlights policy recommendations to support sustainable practices, ensuring that the leather goods sector contributes positively to India's economic stability and environmental well-being, fostering a circular economy within this important industry. The researcher in his research seeks to explore how the sector, which is integral to India's economy, that can both contribute to and be impacted by sustainable practices, analysing the environmental, social, and economic implications of the leather industry