Leather, footwear exporters seek PLI scheme in Budget to boost jobs, manufacturing, shipments

MUMBAI: Apex body for leather and footwear exporters CLE has asked the government to formulate a national policy for the sector with a view to attract investments, boost India's shipments and create jobs.

In a letter to Niti Aayog CEO BVR Subrahmanyam, Council for Leather Exports (CLE) said that though there are schemes and support measures at central and state levels, there is a need for holistic development of the entire sector through a national policy.

The elements of the proposed policy, it said, can include incentives for setting up of manufacturing units, training of workers, support measures for adoption of sustainable technologies and innovative products.

"This policy should cover the entire supply chain of the sector, starting from raw materials to finished products, including processing, product development, marketing, supply chain management, and backward integration," the council said.

Explaining the importance of the policy, CLE Executive Director R Selvam said that the sector needs a national policy as it is a labour-intensive sector, which employs about 4.4 million, with over 85 per cent women.

"The sector has a huge socio-economic benefit. The policy would help the industry in boosting exports and creating huge number of jobs," Selvam told PTI.

The council asked the government to implement the production-linked Incentive (PLI) scheme for the entire supply chain of the footwear and leather industry and also the machinery segment.

It added that there is a need to fine-tune special economic zone (SEZ) policy with a focus on increasing productivity through flexible labour laws, lowering the tax burden for the sale of goods in the domestic market.

Further, the CLE suggested that the policy should include a blueprint for infrastructure development in all leather and footwear clusters to make them smart clusters; measures for logistics management; and monetary policy; credit facilities; and insurance coverage.

"I would request to frame the policy to facilitate growth and development and provide additional employment opportunities to at least two million youth in the next seven years," CLE Chairman R K Jalan said.

He also called for organising a meeting of global CEOs of major leather products and footwear brands with industry secretaries of states.

"Such a meeting will be helpful in attracting more investments from brands," he said adding that there is a demand for setting up plug-and-paly models of factories wherein ready-to-use factory sheds with all required infrastructure and support services are provided by the government.

The industry is projected to grow at a CAGR of 18-20 per cent in the next 6 years. Its turnover is projected to reach USD 47 billion by 2030 from USD 16.7 billion in 2023-24.

The sector's exports dipped by about 10 per cent to USD 4.3 billion in 2023-24.