Leather & Footwear

Central support for the sector ran through the Indian Footwear, Leather & Accessories Development Programme for 2017-18 to 2019-20, under which 3,24,722 unemployed persons received skill training and 2,60,880 were placed in the sector. Over 2017-18 to 2020-21 it gave ₹307.84 crore to modernise 714 units. GST on leather products, leather garments and leather chemicals was cut from 28% to 18% on 15 November 2017, and from 27 July 2018 the concessional 5% GST covered footwear priced up to ₹1,000 a pair. The first footwear quality control order was notified on 28 October 2020.

On 19 January 2022 the Union Cabinet approved the Indian Footwear and Leather Development Programme (IFLDP) with an outlay of ₹1,700 crore, until 31 March 2026 or further review. Its six sub-schemes cover sustainable technology and effluent treatment (₹500 crore), modernisation of units (₹500 crore), mega leather clusters (₹300 crore), institutional facilities at the Footwear Design and Development Institute (₹200 crore), brand promotion (₹100 crore) and design studios (₹100 crore). By 2023-24, 390 applications with investments of ₹824.68 crore had been approved for grants of ₹247.31 crore, and final approval had been given for mega clusters in Tamil Nadu, Bihar, Madhya Pradesh and Maharashtra.

Under the IFLDP, units get assistance of 30% (MSMEs) or 20% (other units) for modernisation, capacity expansion and technology upgradation, with higher rates in the North East. Each common effluent treatment plant can receive 70% of project cost (80% in the North East), up to ₹200 crore, and mega clusters up to 50%, capped at ₹125 crore. Under the quality control orders in force since 1 August 2024, footwear must conform to the Indian Standard and bear the BIS Standard Mark; goods meant for export, micro and small units, and imported soles for export footwear are exempt. The Council for Leather Exports, sponsored by the Ministry of Commerce and Industry, is the sector's export promotion council.

The focus product scheme announced in the Budget 2025-26 is meant to support design capacity, component manufacturing and machinery for non-leather footwear, as well as leather footwear and products, and is expected to facilitate employment for 22 lakh persons, turnover of ₹4 lakh crore and exports of over ₹1.1 lakh crore. Its EFC memo, for the Footwear and Leather Oriented Advancement and Transformation (FLOAT) programme, was discussed on 10 December 2025. The Budget 2026-27 extended duty-free inputs to exporters of shoe uppers and gave exporters one year instead of six months to export the final product. On 6 July 2026 the Commerce and Industry Minister asked the industry to target at least US$ 15 billion in exports in five to six years, noting that 77% of leather exports go to only 15 countries.

US$ 5,259.53 million (2022-23) and US$ 4,687.75 million (2023-24) leather and footwear exports, per DGCI&S; US$ 4.75 billion in a Department of Commerce release of June 2026 (year not stated). ₹1,700 crore IFLDP outlay (2021-26), with approvals of ₹896.87 crore by 2023-24. 4.42 million people employed. Footwear QCOs in force from 1 August 2024. 22 lakh jobs expected from the Budget 2025-26 focus product scheme. Sources: Ministry of Commerce & Industry and DPIIT via PIB (PRIDs 1594913, 1795797, 1884255, 2037029, 2085867, 2191385, 2270662, 2281849); Gazette of India (via BIS); DPIIT Annual Report 2023-24; Budget Speeches 2025-26 and 2026-27; Implementation of Budget Announcements 2025-26.