The government is likely to extend the IFLADP incentive program for the leather and footwear industry to 2025-26
One official said the government can extend an IFLADP incentive program for the leather and footwear industry until 202526, spending 17 billion rupees to further promote manufacturing, exports and job creation.
The Ministry of Industry and Commerce has submitted a proposal to implement the India Footwear, Leather and Accessories Development Program (IFLADP), which costs Rs 1.7 billion and will occur between 202122 and 202526, the official said.
The joint cabinet could approve it soon, the official added.
The plan has six components: sustainable technology and environmental promotion (recommended expenditure 5 billion rupees); comprehensive development of the leather industry (proposed expenditure 5 billion rupees); establishment of institutional facilities (2 billion rupees); large group of footwear and leather accessories development (Rs 3 billion), promotion of Indian brands in the leather and footwear industry (Rs 1 billion) and development of design studies (Rs 1 billion).
The official added that the Financial Expenses Committee of the Ministry of Finance approved the proposal of the Ministry of Commerce.
In the section “Sustainable technology and environmental promotion”, assistance can be provided for the establishment of a common wastewater treatment plant; Support for modernization, capacity expansion and technical improvement can be expanded in the section “Integrated development of the leather industry”.
Similarly, under the section “Establishment of Institutional Facilities”, support can be provided for the establishment of new infrastructure and the improvement of the necessary infrastructure for the existing campus of the Institute of Design and Development of Footwear (FDDI).
Under the sub-plan “Large-scale shoe and leather accessory cluster development”, it is recommended to provide tiered assistance for land development, social infrastructure, production facilities and R&D support ( Investigation and development).
In terms of brand promotion, you can support the promotion of at least 10 Indian brands in the international market.
In addition, under the “Development Design Study” component, you can provide development assistance for 10 studies.
“The studio will promote design innovation, promote market and export links, promote buyer and seller meetings, showcase designs to international buyers, and serve as an interface for trade shows.
“These studies will provide services such as technical support and quality control,” the The official added.
Earlier, IFLADP announced that it would spend 26 billion rupees in three fiscal years (201718 to 201920). It also aims to develop infrastructure and promote additional investment, increase production and create jobs.
Leather Export Committee ( CLE) also recommended that the Ministry further expand the program because it helps improve infrastructure, promote domestic manufacturing and increase the country’s exports. Sanjay Leekha, president of
CLE, said the plan is “extremely” beneficial to the industry.
“It has helped the industry achieve a healthy growth rate. If the government extends it, the leather industry will reap significant benefits,” he said. Leekha added that components such as building the
brand and establishing design studios are the key to growing the industry and improving its competitiveness in domestic and international markets.
He said that under the comprehensive development of the leather industry, it should be easy to regulate so that the industry can take advantage of its advantages.