Lok Sabha Question No. 369 (UNSTARRED), answered on 2025-07-22
Subject: Export of Leather Products
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Rani Srikumar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 369. TO BE ANSWERED ON TUESDAY, THE 22 ND  JULY, 2025.

## EXPORT OF LEATHER PRODUCTS

## 369.   DR. RANI SRIKUMAR:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of the current status of the proposed PLI scheme for toys, leather, and footwear products announced by the Government for implementation;
- (b) the details of Tamil Nadu's current contribution to India's leather and leather products exports and the target enhancement under the proposed incentive scheme;
- (c) the proposed scheme benefit Tamil Nadu's traditional leather manufacturing clusters in Tamil Nadu;
- (d) whether the technology upgradation support is being planned to help Tamil Nadu's leather manufacturers adopt sustainable production processes under the Government schemes, if so, the details thereof; and
- (e) the expected timeline for finalizing the leather and footwear incentive scheme and the anticipated budgetary allocation for Tamil Nadu-based manufacturers?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): It is to state that, there is no PLI Scheme for the toys, leather, and footwear products and as such there is no action ongoing/pending in this regard.

However, in the Union Budget speech for the financial year 2025-2026, new scheme  has  been  announced  for  footwear  and  leather  sector  aiming  to enhance its productivity, quality and competitiveness of India's footwear and leather sector through support to design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products.

Similarly, new scheme for toy sector has been announced in the speech aiming to make India a global hub for toys by focusing on development of clusters, skills,  and  a  manufacturing  ecosystem  that  will  create  high-quality,  unique, innovative, and sustainable toys.

(b) to (e): Tamil Nadu (TN) contributed a share of 35.17% in total export of leather, leather products and footwear from India during the year 2024-25, as detailed below.

| Product                   |   Export from TN MnUSD |   Export from India Mn USD | %shareof TN   |
|---------------------------|------------------------|----------------------------|---------------|
| FINISHED LEATHER          |                 217.44 |                     445.32 | 48.83%        |
| LEATHER GOODS             |                 233.48 |                    1319.6  | 17.69%        |
| LEATHER GARMENTS          |                  98.05 |                     353.82 | 27.71%        |
| FOOTWEAR OF LEATHER       |                 915.37 |                    2007.76 | 45.59%        |
| LEATHERFOOTWEAR COMPONENT |                 166.31 |                     244.17 | 68.11%        |
| SADDLERY AND HARNESS      |                   5.48 |                     205.39 | 2.67%         |
| NON LEATHER FOOTWEAR      |                  62.45 |                     252.91 | 24.69%        |
| TOTAL                     |                1698.59 |                    4828.97 | 35.17%        |

Source : DGCI & S

The  Central  Government  has  approved  the  Central  Sector  Scheme  'Indian Footwear and Leather Development Programme' (IFLDP) for the period  202126 with a total outlay of Rs. 1700 Cr. through six sub-schemes which provide support for modernization, capacity expansion and technological up- gradation of production units or setting-up of new units in the footwear and leather sector. Under Integrated Development of Leather Sector (IDLS) sub- scheme of IFLDP ,  financial assistance to the extent of 40% of cost of Plant and Machinery is provided to the Micro, Small & Medium Enterprises (MSMEs) units and 30% of cost of Plant and Machinery to other units established in North Eastern Areas; and the financial assistance is 30% of cost of plant and machinery to Micro, Small & Medium Enterprises (MSMEs) units of other areas and 20% of cost of Plant  and  Machinery  to  other  units,  subject  to  a  ceiling  of  Rs.15  crore.  In addition  to  this,  5%  additional  financial  assistance  of  the  cost  of  plant  and machinery is provided for the domestically manufactured machinery. Till date, 73 applications have been approved with the total Government of India (GoI) assistance of Rs.30.50 crore in the state of Tamil Nadu.

Under  Sustainable  Technology  &  Environmental  Promotion  (STEP)  subscheme  of  IFLDP,  financial  assistance  is  provided  to  leather  clusters  for establishment  /  expansion  /  up  gradation  of  CETPs  to  meet  the  prescribed pollution control discharge norms, including techniques for hazardous waste management. Under this sub-scheme, assistance upto 80% of the total project cost for North Eastern Areas and 70% of the total project cost for other areas subject to a limit of Rs.200 crore is provided. As on date, project proposals of the  7  Common  Effluent  Treatment  Plants  (CETPs)  operating  in  the  leather tannery sector in Tamil Nadu have been approved for upgradation of the plants, involving  combined  total  project  cost  of  Rs.202.64  crore  and  GoI  grant  is Rs.141.84 crore. The details are as below:

| S. No   | CETPs                              |   Total Project Cost (Rs. Crore) |   GOI Grant Approved (Rs. Crore) |
|---------|------------------------------------|----------------------------------|----------------------------------|
| 1       | PERTEC, Pernambut, Tamil Nadu      |                             9.75 |                             6.82 |
| 2       | THUTHIPET, Ambur, Tamil Nadu       |                             8.49 |                             5.94 |
| 3       | MALIGAITHOPE, Ambur, Tamil Nadu    |                             5.3  |                             3.71 |
| 4       | RANITEC, Ranipet, Tamil Nadu       |                            52.68 |                            36.88 |
| 5       | VANITEC, Vaniyambadi, Tamil Nadu   |                            14.22 |                             9.95 |
| 6       | SIDCO Phase-I, Ranipet, Tamil Nadu |                            59.58 |                            41.71 |
| 7       | PALLAVARAM, Nagalkeni, Tamil Nadu  |                            52.62 |                            36.83 |
|         | Total                              |                           202.64 |                           141.84 |

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