Indian Footwear and Leather Development Programme (IFLDP) is a central sector scheme that aims to develop infrastructure and foster sustainable growth in the Indian leather sector. The Department for Promotion of Industry and Internal Trade, under the Ministry of Commerce and Industry, launched it as a continuation of the past IFLADP (Indian Footwear, Leather and Accessories Development Programme).
Objectives
The broad objectives of the Indian Footwear and Leather Development Programme are multifaceted, with a commitment to both economic and environmental concerns in the quest for holistic development. The goals of the Indian Footwear and Leather Development Programme include:
- Infrastructure Development: Responsibly aligning the physical infrastructure to maximize growth and efficiency in the leather industry.
- Environmental Sustainability: Address the ecological impacts of leather production and encourage sustainable technologies and techniques. Businesses in the industry met develop right ESG strategies keeping sustainability in mind.
- Promotion of Investments: Facilitating subsequent investments to enhance growth and innovation in the leather sector.
- Employment Generation: The creation of decent work for all is a crucial goal of the Indian Footwear and Leather Development Programme, which is particularly committed to empowering women and improving working conditions for inclusive and equitable workforce.
- Capacity Development: Enhancing production and development of an efficient and skilled labour force through training and education programs.
- Global Competitiveness: Our aim is not just to compete, but to excel on the global stage. We are committed to improving the quality and competitiveness of Indian leather, and advancing its brand promotion worldwide.
Key Sub-Schemes
The Indian Footwear and Leather Development Programme is structured on several sub-schemes that are area-specific towards the leather and footwear industry, including:
1. Sustainable Technology and Environmental Promotion (STEP):
Objective: To ensure the adoption of sustainable technologies and practice environmentally sound processes in the leather industry.
Initiatives: These includeprogrammes regarding waste management, pollution control, and the use of eco-friendly material.
2. Integrated Development of Leather Sector Scheme (IDLS):
Objective: Ensure holistic development of the entire leather sector.
Support Areas: Provide financial and technical support to modernize tanneries and prepare better quality products in larger volumes.
3. Mega Leather Footwear and Accessories Cluster Development (MLFACD):
Objective: Support creating large-scale leather clusters for increased production and export.
Focus: Build state-of-the-art infrastructure and facilities to attract investments and foster innovation.
4. Establishment of Institutional Facilities (EIF)
Objective: Develop institutional capacity and supporting infrastructure for the intended growth of the leather sector.
Components: Establishing training institutions, research centres, and testing laboratories.
5. Brand Promotion:
Objective: Promote Indian brands in footwear and leather sector to build export competitiveness.
Strategies: Marketing campaigns, presence within international trade events, partnerships with global designers etc.
6. Design Development:
Objective: Develop designing capabilities in the industry to foster innovation and creativity.
Support: Ongoing training and financial support for the design studios and designers related to modern-day trends.
Impact of IFLDP
Indian Footwear and Leather Development Programme succeeds the Indian Footwear Leather and Accessories Development Programme. IFLDP had a significant impact on the Indian leather industry, including:
- Job Creation: It generated various qualitative employment opportunities, especially for women, equating the parity scales of both genders in the job market.
- Skill Development: Different training programs have succeeded in improving the skill levels of the workers, increasing their productivity and product quality.
- Environmental Sustainability: The Programme promoted sustainable production practices by encouraging the leather industry to adopt eco-friendly methods to reduce industry waste and pollution and lower ecological footprints.
- Economic Growth: It provided a conducive environment for investment and the adoption of new technology to boost infrastructure, leading to an overall increase in the national production capacity and significantly increasing export earnings.
- Social Impact: The Programme contributed to poverty alleviation by ensuring good working conditions in the leather industry. This improvement supported various dimensions of the Sustainable Development Goals (SDGs) through workforce welfare and fair wages, fostering economic growth and reducing poverty levels.
Present Scenario of India’s Leather Industry
The leather industry has strengthened its position in the global market due to its significant contributions and immense potential. The industry is recognized for producing high-quality products, innovative designs and a robust supply chain, displaying its standing as a key player in international trade and commerce. Let’s examine some of the critical aspects:
- Global Production: India produces about 13% of the world’s leather, cementing its position as a major player in the global leather industry. India’s significant contribution reflects its role, importance, and competitiveness in the international market.
- Export Earnings: The industry is one of India’s major export-earning industries, contributing significantly to the foreign exchange earnings. This industry’s robust export performance has been strengthening national economy through revenues earned from international markets.
- Raw Material Availability: India has strong availability of raw materials for the leather industry, with 20% of the world’s cattle and buffalo population and 11 % of the world’s goat and sheep population. This abundant supply ensures that raw materials are available steadily to support the country’s large-scale leather production. It also contributes to the industry’s growth and competency in the global market.
- Development of Employment: The labour-intensive leather industry, with its substantial workforce of over 4 million, offers significant employment opportunities. Notably, a significant percentage of these employees are women, a clear demonstration of the industry’s commitment to gender diversity and economic empowerment.
- Production Capacities: India is the second-largest producer of footwear and leather garments, contributing significantly to the global supply. This position reflects India’s robust production capability and consistent annual output, which support its role in the global market for these products.
- Major Production Centers: The major centres of leather production in India are located in Tamil Nadu, Andhra Pradesh, West Bengal, Uttar Pradesh, Maharashtra, Punjab, Haryana, and Delhi. These regions have cemented their leather manufacturing hub positions due to production capabilities, skilled labour, and supportive infrastructure.
- Export Markets: USA, Germany, UK, Italy, and France are the key markets for the export of Indian leather products. These countries represent major destinations where Indian leather goods such as garments, footwear and accessories are in high demand.
Challenges and Opportunities
Although the Indian leather industry has grown relatively successful, it is similarly plagued by a number of challenges that it needs to address to sustain growth and enhance competitiveness.
- Environmental issues
Problem: The production of leather is associated with significant environmental pollution of water and air.
Remedy: Implementing sustainable technologies and practices, as the STEP sub-scheme facilitates, can minimize the burden on environmental impact.
2. Infrastructure Deficiency
Problem: The infrastructure for some regions is poor, reducing production efficiency and quality.
Remedy: As per the IDLS and MLFACD sub-schemes, investments in infrastructure development will enhance production capacities and attract more investments.
3. Skill Gaps
Problem: The unavailability of skilled labour to produce modern, High-quality leather.
Solution: Initiatives under the EIF sub-scheme will give training and alternative capacity-building mechanisms to improve the skill gap.
4. Global Competition
Problem: Indian leather products face tough competition from countries like China, Italy, and Vietnam.
Remedy: Brand promotion and design development schemes can increase the global competitiveness of Indian products.
5. Regulatory Challenges
Problem: Stringent environmental regulations can pose challenges for SMEs in the leather industry.
Remedy: Providing financial and technical support to SMEs for compliance with environmental standards can ease this problem. Getting environmental clearance is crucial to stay compliant.
Future Prospects for Leather Industry in India
The future for the leather industry in India is very bright, with quite a few opportunities ahead with propositions of growth and development. Key prospects include:
Diversification Strategy: New export markets are being explored beyond the existing traditional ones in the USA and Europe, including the emerging markets in Asia, Africa, and Latin America.
- Diversification Strategy: New export markets are being explored beyond the existing traditional ones in the USA and Europe, including the emerging markets in Asia, Africa, and Latin America.
- Embracing New Technologies & Innovations: This includes adaptation of new technologies like automation, digitalization, and other avenues to enhance efficiency during production and quality.
- Sustainable Practices: Adoption of sustainable technologies and eco-friendly practices to establish an international global environment benchmark and match consumer desires.
- Skill Development Strategy: Invest in skill development programs to guarantee a steady supply of skilled manpower for the industry.
- Collaboration & Partnerships: Secure mutual collaboration between the players in the industry, research institutions, and international partners for innovation and growth.
To Wrap Up
IFLDP aims to boost the Indian leather sector through infrastructure development, sustainability, investment promotion, and skill enhancement. Targeted sub-schemes of the program would ensure comprehensive growth, which has already shown success in job creation, skill development, and economic growth. In spite of environmental issues and global competition challenges, immense future potential lies in the Indian leather industry.
Adopting new technologies, embracing sustainable practices, and forging collaborations can place the sector on a continued growth path and global competitiveness. To get business consulting and compliance management services in India, visit https://corpbiz.io/.
Frequently Asked Question
1. What is the Indian Footwear and Leather Development Programme?
IFLDP is a central sector scheme envisioned by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry. It also aims to develop infrastructure and foster sustainable growth in the Indian Leather Sector.
2. What are the main objectives of IFLDP?
The basic purposes of IFLDP are infrastructure development, environmental sustainability, promotion of investment, employment generation, capacity development, and increasing global competitiveness.
3. How can IFLDP contribute to environmental sustainability?
IFLDP, through the STEP scheme, advances environmental sustainability by promoting the use of sustainable technologies and the use of best environmentally friendly practices in the leather industry regarding waste management and pollution control.
4. How does the program support skill development in the leather industry?
It supports the considerable development of skills under the EIF sub-scheme, realized through training and education initiatives that focus on improving production capabilities and creating a skilled workforce.
5. What was the contribution of IFLDP to the Indian leather industry?
IFLDP has created employment, enhanced skills in the value chain, contributed to environmental sustainability, and influenced a crucial contribution to economic growth, leading to improved working conditions and poverty alleviation.
6. What are the significant challenges faced by the Indian leather industry?
The industry faces environmental problems, infrastructure gaps, skill shortages, global competition, and regulatory hurdles.
7. The industry faces environmental problems, infrastructure gaps, skill shortages, global competition, and regulatory hurdles.
India is an essential player in the global leather market; it contributes about 13% of the world's leather and is among the largest producers of footwear and leather garments. The sector also earns significant export revenues for the country.
8. What are the prospects of the leather industry in India?
Future prospects include:
· New export markets.
· New technologies.
· Sustainable practices.
· Investment in skill development.
· Collaboration for innovation and enhanced growth.
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