Indian Footwear and Leather Development Programme (IFLDP)

Indian Footwear and Leather Development Programme: Relevance

• GS 3: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

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Indian Footwear and Leather Development Programme: Context

• Recently, Ministry of Commerce & Industry has approved the continuation of Indian Footwear and Leather Development Programme (IFLDP) till 2026, or till further review.

Indian Footwear and Leather Development Programme: Key points

• Indian Footwear and Leather Development Programme (IFLDP), erstwhile IFLADP (Indian Footwear Leather and Accessories Development Programme), has been approved for continuation from 2021-22 with an approved financial outlay of Rs. 1700 crore.
• Indian Footwear and Leather Development Programme (IFLDP) aims at development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

IFLDP sub schemes

The following sub-schemes have been approved under IFLDP during 2021-26

• Sustainable Technology and Environmental Promotion (proposed outlay Rs.500 crore):- Special Purpose Vehicle CETP would be provided assistance @ 80% of the total project cost for Northeastern Areas and @ 70% of the total project cost for other with a limit of Rs.200 crore.
• Integrated Development of Leather Sector (IDLS) (proposed outlay Rs.500 crore):- Assistance would be provided to the sectoral units for their modernization/capacity expansion/technology up-gradation on or after 01.01.2020 @30% to MSME units and 20% to other units.
• Establishment of Institutional Facilities (proposed outlay Rs.200 crore):- Setting up of International Testing Centre, Sports Complex, replacement of conventional light fixtures with LED lights and construction of girls hostel in FDDI campuses are planned.
• Mega Leather Footwear and Accessories Cluster Development (MLFACD) (proposed outlay Rs.300 crore):- The sub-scheme aims at world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather and footwear industry so as to cater to the domestic market and exports.
• Brand Promotion of Indian Brands in Leather and Footwear Sector (proposed outlay Rs.100 crore):- The GoI assistance is proposed to be 50% of total project cost subject to limit of Rs 10 crore for each brand in next three year to promote 10 Indian brands in the International Market in 3 years.
• Development of Design Studios (proposed outlay Rs.100 crore):
  • This is a new sub-scheme. Assistance would be provided to develop 10 Indian design studios.
  • The studios will promote marketing/export linkages, facilitates buyer- seller meets, display designs to international buyers and work as interface for the trade fairs.
  • Design Studios will be kind of ‘one-stop- shop’ providing a wide range of services: design, technical support, quality control etc.

Impact of erstwhile IFLADP

• The programme has a direct benefit towards quality employment generation especially for women, skill development, decent work, making the industry more environment friendly and prompting sustainable production system.
• The leather clusters located in different parts of the country have accrued benefit in terms of reduction of poverty, gender equality, sector specific skill/education, etc., thus touching many of the Sustainable Development Goals (SDGs).
• NDPs (National Development Programme) such as economic growth, reduction in poverty, generation of employment, quality education/skills, gender equality, good health and well-being, infrastructure development, affordable and clean energy and other environmental benefits are well-served by the IFLAD Programme.

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