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Indian Footwear and Leather Development Programme (IFLDP)

Ministry of Commerce & Industry has approved the continuation Indian Footwear and Leather Development Programme (IFLDP) with an outlay of Rs. 1700 Crore till 31.03.2026. IFLDP aims at the development of infrastructure for the leather sector, addressing environmental concerns specific to the leather sector, facilitating additional investments, employment generation, and increase in Leather production. The present article briefs the Indian Footwear and Leather Development Programme (IFLDP).

Know more about the Mega Leather, Footwear, and Accessories Cluster

The objective of the IFLDP

The key objective of the Indian Footwear and Leather Development Programme (IFLDP) is as follows:

• One of the primary objectives of the IFLDP is the development of infrastructure for the leather sector
• IFLDP aims to address environmental concerns specific to the leather sector
• To facilitate additional investments
• Employment generation is also a key objective of the Indian Footwear and Leather Development Programme
• The program aims to increase the production of Indian Footwear and Leather

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Features of the IFLDP

The key feature of the Indian Footwear and Leather Development Programme (IFLDP) is as follows:

• Sustainable Technology and Environmental Promotion will receive a big boost under the Indian Footwear and Leather Development Programme (IFLDP)
• Renewed focus to be placed on integrated development of the leather sector
• IFLDP will enable the creation of world-class infrastructure to cater to the domestic market and exports
• 10 Indian footwear design studios will be developed under IFLDP
• Brand Promotion of Indian Brands in Leather and Footwear Sector to be one of the major focus areas of the IFLDP

The benefit of the IFLDP

The benefit of the Indian Footwear and Leather Development Programme (IFLDP) is as follows:

• The IFLDP has a direct benefit towards quality employment generation especially for women, skill development, decent work, making the industry more environments friendly
• Indian Footwear and Leather Development Programme will promote a sustainable leather production system
• The leather clusters located in different parts of India will accrue benefits in terms of reduction of poverty, gender equality, sector-specific skill/education, etc., thus touching many of the Sustainable Development Goals (SDGs).
• National Development Plans (NDP) 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 will be well-served by the IFLAD Programme

Tenure of the scheme

The Central Government has approved the continuation of the Central Sector Scheme ‘Indian Footwear and Leather Development Programme (IFLDP)’ with an approved expenditure of Rs.1700 crore till 31.03.2026 or till further review, whichever is earlier.

Sub-schemes of Indian Footwear and Leather Development Programme

The following are the sub-schemes of the Indian Footwear and Leather Development Programme (IFLDP):

• Sustainable Technology and Environmental Promotion (STEP)
• Integrated Development of Leather Sector (IDLS)
• Mega Leather, Footwear and Accessories Cluster Development (MLFACD)
• Establishment of Institutional Facilities
• Brand Promotion of Indian Brands in Leather and Footwear Sector
• Development of Design Studios

Sustainable Technology and Environmental Promotion (STEP)

Special Purpose Vehicle constituted for each CETP under Sustainable Technology and Environmental Promotion would be assisted with a limit of Rs.200 crore.

• The rate of assistance is @ 80% of the total project cost for Northeastern Areas with industry’s/beneficiary share to be 20% of the project cost
• The rate of assistance is @ 70%  of the total project cost for other areas with industry’s/beneficiary share to be 30% of the project cost

Integrated Development of Leather Sector (IDLS) sub-scheme

As part of the Integrated Development of Leather Sector (IDLS) sub-scheme, Assistance would be provided to the sectoral units for their modernization/capacity expansion/technology up-gradation on or after 01.01.2020.

• The Assistance will be provided @30% to MSME units and 20% to other units.
• Financial assistance is being proposed to North-Eastern Areas also @40% of the cost of plant & machinery to MSME units
• Financial assistance is being proposed to North-Eastern Areas also @ 30% of the same to other units with additional 5% financial assistance for the domestically manufactured plant and machinery.
• Maximum assistance will be provided upto Rs.15 crore per product line keeping in view 5 times increase in the upper limit of investment in Plant and Machinery by MSME

Establishment of Institutional Facilities

Setting up of International Testing Centre, Sports Complex, and replacement of conventional light fixtures with LED lights and construction of girl’s hostel in FDDI campuses are planned under the Establishment of Institutional Facilities.

Mega Leather Footwear and Accessories Cluster Development (MLFACD) sub-scheme

The MLFACD 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 to cater to the domestic market and exports.

Graded assistance is proposed to be provided @50% of the project cost or @70% of the project cost in Northeastern areas, for land development, core infrastructure, HRD, and social infrastructure, production facilities including ready to use sheds with plug and play facility, R&D support and export services excluding the cost of land with maximum Government assistance being limited to Rs. 125 crore.

Brand Promotion of Indian Brands in Leather and Footwear Sector

As part of the Brand Promotion of Indian Brands in the Leather and Footwear Sector, The assistance will be provided at a rate of  50% of the total project cost subject to a limit of Rs 10 crore for each brand in the next three to promote 10 Indian brands in the International Market in 3 years.

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.

Development of Design Studios

Development of Design Studios is a new sub-scheme. Assistance would be provided to develop 10 Indian design studios.

• The studios will promote marketing/export linkages, facilitate buyer-seller meets, display designs to international buyers, and work as an 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.
• Institutes like FDDI, CLRI, NID, NIFT, IBEF, IIFT or institutes of similar standing or any large units of the industry or group of industry would be the implementing agencies

A total approved outlay for Sub-schemes of IDLS

Sl.No	Scheme	Proposed outlay
1	Sustainable Technology and Environmental Promotion (STEP)	Rs.500 crore
2	Integrated Development of Leather Sector (IDLS) sub-scheme	Rs.500 crore
3	Establishment of Institutional Facilities (proposed outlay Rs.200 crore)	Rs.200 crore
4	Mega Leather Footwear and Accessories Cluster Development (MLFACD)	Rs.300 crore
5	Brand Promotion of Indian Brands in Leather and Footwear Sector	Rs.100 crore
6	Development of Design Studios	Rs.100 crore

To ensure effective implementation of the sub-schemes under IFLDP, DGFT has been decided to constitute an Empowered Committee, a Steering Committee, and an Advisory Committee.

The official notification of the Department for Promotion of Industry and Internal Trade (DPIIT)  is attached here for reference:

notification_of_IFLDP_2021-26_04March2022