The Union Cabinet has recently approved the continuance of the Indian Footwear and Leather Development Programme (IFLDP) until 31st March 2026 or until further review, with a budget allocation of Rs. 1700 crore. This move is seen as an affirmation of the government’s commitment towards the development of the nation’s leather industry.
Understanding the IFLDP Scheme
The IFLDP is a Central Sector Scheme devised with the objective of developing infrastructure for the leather sector, addressing its unique environmental concerns, facilitating additional investments, increasing employment opportunities and boosting production.
This scheme is essentially an extension of the erstwhile Indian Footwear Leather and Accessories Development Programme (IFLADP), which had a financial outlay of Rs. 2,600 crore for the period of 2017-18 to 2019-20.
Under the current programme, several sub-schemes have been approved. These include promoting sustainable technology and environmental practices, Integrated Development of Leather Sector (IDLS), establishment of institutional facilities, Mega Leather Footwear, and Accessories Cluster Development. Also included are brand promotion schemes and development of design studios.
The development of design studios is a new initiative under this programme that has been allocated Rs. 100 crore. This scheme is expected to promote marketing/export linkages, facilitate interaction between buyers and sellers at trade fairs, and showcase designs to international buyers.
Impact of the Erstwhile IFLADP
The previous programme, IFLADP, had direct benefits such as quality employment generation, especially for women, skill development, creation of an environmentally friendly industry, and promotion of a sustainable production system. It helped in reducing poverty, ensuring gender equality, and promoting sector-specific education, thus aligning with many of the Sustainable Development Goals (SDGs).
Besides, the IFLADP also facilitated attainment of various National Development Plans (NDPs) like economic growth, job creation, well-being enhancement, infrastructure development, and environmental preservation. Most of these NDPs are in line with the SDGs.
Current Status of India’s Leather Industry
Presently, India ranks as the second-largest producer of footwear and leather garments in the world, following China, and is also the second-largest exporter of leather goods. The industry consistently contributes significant foreign exchange earnings to the country and is among the top ten forex earners.
The leather industry in India is renowned for its abundance of raw materials, with access to 20% of the world’s cattle and buffalo, and 11% of the global goat and sheep population.
This industry employs over 4 million individuals, predominantly from underprivileged segments of society. Women comprise about 30% of the workforce in the Leather products industry. Additionally, India’s leather industry has one of the youngest workforces globally, with 55% being below 35 years of age.
Countries such as the USA, Germany, UK, Italy, France, Spain, Netherlands, UAE, and others are significant markets for Indian Leather & Leather Products.
