Government to Extend IFLADP for Leather and Footwear Industry
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The government is likely to provide an extension of the Indian Footwear, Leather and Accessories Development Programme (IFLADP), an incentive scheme for the leather and footwear sector till 2025-26 with an outlay of Rs.1,700 crore to boost exports, manufacturing and job creation, an official source stated.

The Ministry of Commerce and Industry submitted a proposal to implement the IFLADP from 2021-22 until 2025-26. There is an expectation that the Union Cabinet will approve the IFLADP proposal soon. Earlier, the government launched this programme for 2017-18 to 2019-20. It aims to develop infrastructure, increase production, facilitate additional investments and employment generation.

The IFLADP contains the following six components:

  • Sustainable technology and environmental promotion (proposed outlay of Rs.500 crore).
  • Integrated development of the leather sector (proposed outlay of Rs.500 crore).
  • Establishment of institutional facilities (proposed outlay of Rs.200 crore).
  • Mega leather footwear and accessories cluster development (proposed outlay of Rs.300 crore).
  • Promotion of Indian brands in the leather and footwear sector (proposed outlay of Rs.100 crore). 
  • Development of design studios (proposed outlay of Rs.100 crore).

The sustainable technology and environmental promotion component provide financial assistance for setting up a common effluent treatment plant and support for modernisation, capital expansion or technology up-gradation under the integrated development of leather sector components.

The establishment of the institutional facilities component supports the new infrastructure and up-gradation of the necessary infrastructure of the existing campuses of Footwear Design and Development Institute (FDDI).

The mega leather footwear and accessories cluster development component proposes graded assistance for land development, production facilities, social infrastructure, and support for research and development. The promotion of Indian brands in the leather and footwear sector can assist in promoting at least ten Indian brands in the international market. 

The development of the design studios component can provide financial support for the development of ten studios. The studios will promote export linkages, design innovation, facilitate buyer-seller meets, provide technical support and quality control.

The Council for Leather Exports (CLE) suggested the Ministry of Commerce and Industry for further extension of the IFLADP because it helps in boosting domestic manufacturing, upgrading infrastructure, and increasing exports. It also helps the leather and footwear industry to register healthy growth rates. 

An extension of the IFLADP will significantly benefit the leather and footwear sector in India. It will help to enhance infrastructure and competitiveness in domestic and international markets. The benefits and assistance provided under the IFLADP will contribute to exports, job creation and thus support the economy’s growth.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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