Special package for employment generation in leather and footwear sector

The Union Cabinet has approved the special package for employment generation in leather and footwear sector. The package involves the implementation of Central Sector Scheme “Indian Footwear, Leather & Accessories Development Programme” with an approved expenditure of Rs. 2600 Crore over the three financial years from 2017-18 to 2019-20.

The Indian Footwear, Leather & Accessories Development Programme has the following sub-schemes:

• Human Resource Development (HRD) sub-scheme.
• Integrated Development of Leather Sector (IDLS) sub-scheme.
• Establishment of Institutional Facilities sub-scheme.
• Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme.
• Leather Technology, Innovation and Environmental Issues sub-scheme.
• Promotion of Indian Brands in Leather, Footwear and Accessories Sector sub-scheme.
• Additional Employment Incentive for Leather, Footwear and Accessories Sector sub-scheme.

The scheme would lead to 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.

The enhanced Tax incentive would attract large-scale investments in the sector and reform in labour law in view of seasonal nature of the sector will support economies of scale.
The Special Package has the potential to generate 3.24 lakh new jobs in 3 years and assist in the formalization of 2 lakh jobs as cumulative impact in Footwear, Leather & Accessories Sector.

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