There is a demand for the Production Linked Incentive scheme for the leather and footwear sectors, and whenever new products are brought under the programme this demand will be considered, a senior official said Tuesday.
“As of now no decision has been taken (on bringing leather and footwear under PLI scheme).We are trying to bring in some more initiatives for the sector which are in the pipeline….consultations are on,” Additional Secretary in the Department for Promotion of Industry and Internal Trade Rajiv Singh Thakur said.
The government has announced PLI policy in 2020 with a potential outlay of Rs 1.97 trillion. It started with sectors like Active Pharmaceutical Ingredients and drug intermediaries, medical devices and large–scale electronics manufacturing.
Later several other manufacturing sectors were extended the benefits of the scheme. Now the scheme covers 14 sectors and they have been allocated Rs 1.62 trillion. Around Rs 35000 crore is still left in the scheme many sectors like toys are vying to be included in it.
The Indian leather and footwear industry is $11.5 billion and exports of the sector are $5.88 billion. It grew at the rate of 13% between 2015 and 2019 before the COVID pandemic struck. It regained growth of 20% in 2021-222 as compared to 2020-21.
“Outlook for the sector is good. There are a lot of foreign manufacturers, including some of the biggest names like Nike, Adidas, Clarks and Skechers are looking at India for manufacturing,” Thakur said.
Around 70-75% of the footwear manufactured in India is non-leather.
Imports of leather and footwear by India stands at $1.5 billion annually. To address the imports the government’s Indian Footwear and Leather Development Programme is working to make available components and help in upgradation of machinery of the sector.
Support from the government to the leather sector started from the ninth five year plan (2002-09). This support continued till 2020-21. In January 2002 approval was given for continuation of the central sector scheme Indian Footwear and Leather Development Programme with an outlay of Rs 1700 crore till March 2026.
The scheme has six components and under various heads `350 crore have been released under the scheme.