The Indian government is making strides to bolster the leather and footwear industries through a newly proposed Production Linked Incentive (PLI) scheme. Currently in the draft phase, this initiative aims to provide substantial financial backing as part of its commitment to enhance domestic manufacturing and exports in these sectors. With an anticipated budget allocation of ₹2,600 crore, officials are optimistic about the positive impact on employment and economic growth.

PLI Scheme Overview

Discussions regarding the extension of the PLI scheme to the leather and footwear sectors have been ongoing for some time. This initiative, introduced in 2020, has proven instrumental in promoting domestic manufacturing across various industries. By reinforcing the leather and footwear sectors, the government aims to foster job creation and stimulate economic activity.

• Employment Generation: The scheme is projected to create around 2.2 million jobs.
• Revenue Goals: It aims to achieve a turnover of ₹4 lakh crore and boost exports to over ₹1.1 lakh crore.

Supporting Infrastructure

The FY26 Budget has also outlined a focus product scheme specifically for leather and footwear, which will encompass support for design, capacity building, component manufacturing, and necessary machinery for producing non-leather footwear. This multifaceted approach is designed to create a robust manufacturing ecosystem that aligns with the Make in India initiative.

Additionally, the government is currently executing the Footwear, Leather and Accessories Development Programme alongside the ₹1,700-crore Indian Footwear and Leather Development Programme (IFLDP), which runs from 2021 to 2026. These programs aim to enhance the competitiveness of Indian products in the global market.

Future Prospects

While there have also been talks about extending the PLI scheme to include the toy industry, the government has indicated that no immediate actions are planned in this regard. However, a national action plan has been introduced to position India as a global leader in toy manufacturing, focusing on developing local clusters and sustainable production methods.

The parliamentary committee commended the PLI scheme for its significant role in manufacturing and recommended its expansion to additional sectors, including defense, aerospace, and shipping containers.

Achievements and Expectations

Currently, the PLI scheme supports 14 sectors, with an overall outlay of ₹1.97 lakh crore. Although only ₹14,020 crore in incentives have been disbursed to date across 10 sectors, the government anticipates that disbursements will accelerate as more eligible units commence production.

According to the Ministry of Commerce and Industry, “Projects typically unfold over a two to three-year period, with claims initiated after the first year of production. Most current projects are still in the implementation phase and will submit incentive claims as they progress.”

In conclusion, the proposed PLI scheme for leather and footwear is set to significantly enhance India’s manufacturing landscape, promising economic growth and extensive job creation in the near future. As the government continues to innovate and expand its support for various sectors, the potential for India’s rise as a manufacturing powerhouse grows ever stronger.