- Government confirms there is no Production Linked Incentive (PLI) scheme for leather, footwear, and toys sectors.
- Indian Footwear and Leather Development Programme (IFLDP) provides key support for MSMEs in leather and footwear industries.
- New toy sector plans focus on cluster growth, skills, and innovation to make India a global manufacturing hub.
Recently, the Government clarified that no PLI scheme exists for the leather, footwear, and toys sectors. Instead, other support schemes like the Indian Footwear and Leather Development Programme (IFLDP) and new toy industry plans aim to boost manufacturing and exports. This update comes as industries look for government help to grow their presence globally.
Schemes Supporting Leather and Footwear Sectors
Even though the government confirmed there is no PLI scheme for leather and footwear, other efforts are working to promote these sectors. These plans help modernize facilities, increase production capabilities, and improve export potential. A key example is the Indian Footwear and Leather Development Programme (IFLDP), which supports MSMEs and encourages growth through sub-schemes focused on modernization and capacity building.
Indian Footwear and Leather Development Programme (IFLDP) Explained
The IFLDP, approved for 2021-26, has a budget of Rs. 1700 crore spread over six sub-schemes. Its main goal is to move India’s footwear and leather sector forward by providing financial support, infrastructure help, and skill development.
For example, under the Integrated Development of Leather Sector (IDLS) sub-scheme, MSMEs get financial help covering up to 40% of the cost of plant and machinery. This allows smaller units to modernize equipment and improve production efficiency without a heavy financial load.
Besides modernization, the program supports expanding capacity and upgrading technology, helping businesses stay competitive worldwide.
New Initiatives for the Toy Industry
The government plans to turn India into a global hub for toy manufacturing. The approach focuses on building clusters, improving skills, and encouraging an innovative manufacturing environment.
These efforts aim to create high-quality, unique, and eco-friendly toys that meet international standards, increasing exports and creating local jobs. By promoting innovation and cluster growth, the government wants to boost manufacturing strength and competitiveness in the global toy market.
Government’s Confirmation on No PLI for Leather, Footwear and Toys
In a written reply to Parliament on July 22, 2025, Union Minister of State for Commerce and Industry, Jitin Prasada, confirmed that no PLI scheme exists or is planned for the leather, footwear, and toy sectors. This statement cleared up earlier expectations from these industries and brought clarity on government policies.
Instead, targeted support measures different from PLIs will be put in place to cover financing, skill development, design capacity, and manufacturing infrastructure needs.
Importance of Tamil Nadu in India’s Leather and Footwear Exports
Tamil Nadu plays a key role in India’s leather and footwear exports. In 2024-25, India exported leather goods and footwear worth $4,828.97 million internationally. Of this, Tamil Nadu contributed 35.17%, about $1,698.59 million.
This large share shows Tamil Nadu’s leadership in the sector and its role as a production and export hub. Government schemes like the IFLDP help support this important region’s industries.
| Scheme / Initiative | Period | Total Budget | Key Features |
|---|---|---|---|
| Indian Footwear and Leather Development Programme (IFLDP) | 2021-26 | Rs. 1700 crore | Supports MSMEs through modernization, capacity growth and technology upgrades; up to 40% financial help for plant & machinery (IDLS sub-scheme). |
| New Toy Industry Initiatives | Announced FY26 Budget | Not specified | Focuses on cluster growth, skill building, and innovative manufacturing to make India a global hub for toys. |
If you’re looking to start or grow in leather, footwear, or toy manufacturing, you can get government help beyond the PLI scheme through these support programs. Keep an eye on updates at the Ministry of Commerce & Industry Official Website for the latest opportunities.