The GoI in its latest has decided to extend the incentive plan for the leather and footwear industry to boost manufacturing, exports and job creation. The Commerce and Industry Ministry has submitted a proposal for the implementation of the Indian Footwear Leather and Accessories Development Programme (IFLADP) with a monetary outlay of 1,700 crores during 2021-2026 for pushing the growth of the sector.
According to officials, the proposals are divided into six components; Sustainable Technology and Environmental Promotion with an outlay of Rs 500 crore; Mega Leather Footwear and Accessories Cluster Development with Rs 300 crore; Development of Design Studios with Rs 100 crore; Brand Promotion of Indian Brands in Leather and Footwear Sector with Rs 100 crore; and Integrated Development of Leather Sector with Rs 500. However, the Union Cabinet is yet to seal approval for the programme whereas, the finance ministry has approved the proposal, a government official added.
Under this incentive scheme, assistance will be provided including, setting up a common effluent treatment plant, up-gradation of machines and requisite infrastructures, Development in R&D, production facilities, land development, social infrastructure and many more. For Brand Promotion, 10 such Indian brands will be handpicked and promoted in the international market.
According to Invest India’s report, India is the 2nd largest consumer, and producer of footwear in the world and is projected to increase 8 folds by 2030. India’s footwear market is estimated to reach $15.5 billion by 2022, from $10.6 billion in 2019. India is the 2nd largest producer of footwear, 2nd largest exporter of leather garments, and the 5th largest exporter of leather goods.