Cabinet extends incentive scheme IFLADP for leather, footwear industry till 2025-26

07 Feb,22 9:30 am
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IFLDP: The ministry of commerce in a statement recently said that the Indian Footwear and Leather Development Programme (IFLDP) (erstwhile IFLADP) has been approved for continuation from 2021-22 with an approved financial outlay of ₹1,700 crore.

Key Points:

The programme was approved by the cabinet on 19 January for continuation till 31 March 2026, or till further review, whichever is earlier.

Sub-schemes approved under the programme include:

  • Sustainable technology and environmental promotion;
  • Integrated development of leather sector (IDLS);
  • Establishment of institutional facilities;
  • Mega Leather Footwear and Accessories Cluster Development;
  • Brand promotion; and
  • Development of design studios.

The development of design studios (proposed outlay ₹100 crore) is a new sub-scheme and it would promote - marketing and export linkages, facilitate buyer-seller meets, display designs to international buyers and work as an interface for the trade fairs.

Under the IDLS, with a proposed outlay ₹500 crore, assistance would be provided to the sectoral units for their modernization/capacity expansion/technology up-gradation on or after 1 January 2020.

The designated agency to implement the sub-scheme is being proposed to be selected amongst institutes like NID, NIFT, IBEF, IIFT or institutes of similar standing.

Aim of IFLDP:

  • IFLDP aims at the development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

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).
  • Most of the National Development Plans (NDP) also align with the SDGs. NDPs 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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