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Finance minister Nirmala Sitharaman has received multiple requests to bring PLI schemes for more sectors. The minister is likely to announce similar versions for half a dozen industries including footwear and leather. However, the government will examine the potential for local value addition and import substitution to boost investments and create jobs.
India is likely to announce new versions of Productivity Linked Incentive (PLI) scheme for various industries, including leather and footwear, in Union budget 2023-24 slated to be released on February 1, 2023, as per industry sources. Finance minister Nirmala Sitharaman has received many requests from various industries to introduce the PLI scheme for them.
The leather industry, led by the Council for Leather Exports, has sought an extension of the PLI scheme, pleading that India can become a hub for the exports of leather and non-leather footwear. Tamil Nadu is also pursuing leather and footwear PLI scheme as it has a 38 per cent share in India’s footwear and leather products output and 45 per cent share in India’s total leather exports.
Exporters from the leather and footwear industry of India expect the government to consider the demand in the upcoming budget as it is the need of the hour. Suresh Gupta, an exporter from Agra, Uttar Pradesh, told Fibre2Fashion, “Present challenges of slow demand highlight the need for such a scheme. Leather and footwear come under discretionary expenditure. Consumers do not purchase footwear and leather products when they are uncertain about their regular income and jobs.”
Industry experts said that PLI schemes for some sectors have succeeded in encouraging new investments. Therefore, other industries are demanding the scheme as well.
Fibre2Fashion News Desk (KUL)
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