For many years now, the Government of India has been working towards improving the conditions of this industry, which is so vital for the economy. In this regard, the Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme was launched by the Department of Industrial Policy and Promotion (DIPP) in association with the Indian Footwear and Leather Development Programme (IFLDP). The objective was to promote brands from India at a global level through participation in major international exhibitions. Under this scheme, the Government is providing funds to facilitate the global promotions of brands. The scheme received an overwhelming response from Indian brands in the footwear and leather industry. Keeping a track of the good response received from existing and new players, DIPP decided to extend the five-year term of IFLDP from March 31, 2018, to March 31, 2026.
Objective of the Scheme
- The primary objective of the Brand Promotion of Indian Brands in the Footwear and Leather Sector is to provide international branding support to leading Indian manufacturers in the Footwear and Leather Sector.
- The Brand Promotion of Indian Brands in Footwear and Leather Sector sub-scheme will fund global promotional activities of quality Indian footwear, leather, and accessories brands that are for sale as finished goods at globally competitive prices.
- It will facilitate exporters to source raw materials from the country and supply items to overseas markets like the US. The extension of IFLDP will help strengthen India’s trade policy initiatives under Make in India, Skill India, and Ease of Doing Business.
- The scheme also promotes the Government of India’s “Make in India” initiative by showcasing the strengths, expertise, and capabilities of the country’s manufacturing base.
- The scheme is intended to achieve growth in the Indian footwear industry by promoting brands in India and abroad and targeting better margins by building brands as assets.
Eligibility for the Scheme
The scheme would provide benefits to Indian manufacturers engaged in the Footwear and Leather business and intent on scaling up their production and capacities, thereby enabling them to compete with international players. The entities that would be eligible for the scheme are:
- Finished Leather Industry
- Leather Goods Units
- Leather Garment Industries
- Saddlery
- Footwear and footwear components industries
Any entity should mid the below-mentioned points before initiating to apply for the scheme:
- The entity should have a cash profit for the last 3 years
- The entity should acquire minimum exports of Rs. 50 crore per year or minimum domestic sales of Rs. 50 crore per year of their manufactured products.
- Companies in India with registered trademarks and proven brand promotion programs can apply for the scheme.
Activities for Indian Brand Promotion under the Scheme
- The entity would have its products displayed in the International Market with the usage of digital or electronic media.
- The eligible Indian company will be provided with publication of the World Class Catalogue through the usage of digital, social, electronic, or print media.
- Reimbursement will be provided to Indian manufacturers for registering their brands in International Market.
- An extensive publicity campaign for an Indian brand in the footwear and leather sectors will be carried out in identified markets using focused media tools to maintain awareness of the Indian brand in the global business community.
Project Cost
- In order to promote and revive Indian brands and help them reach an international platform, the cost of the Brand Promotion of Indian Brands in Footwear and Leather Sector sub-scheme will be limited to ₹3 crores per year for each brand for three years.
- The share of the Indian manufacturer would be balanced at 50% of the project cost.
- In case the total project cost would exceed ₹3 crores, the remaining amount would be financed by the brand owner.
Subsidy Release
Approved Indian manufacturers will be obligated to maintain a project-specific Trust and Retention Account in any nationalized bank. After the approval of the proposal, the Government will release its share of assistance into this account in three phases, according to the following schedule:
First Installment: The first installment of assistance is 40% of the total assistance, as an advance, on final approval of the project and on producing a statement of project-specific TRA reflecting the proportional contribution deposited by the Indian manufacturer in the TRA.
Second Installment: Second Installment will be 30% of the assistance after submission of a statement showing how the first installment was spent and on producing the statement of project-specific TRA reflecting the proportionate contribution deposited by the Indian manufacturer in the TRA.
Third Installment: The GOI will release the third installment of 30% of the assistance on a reimbursement basis after submission of all relevant documents for completion of the project, full utilization of the 100% share of the unit, and on producing a statement of project-specific TRA reflecting the proportionate contribution deposited by the Indian manufacturer in the TRA.
Where Can You Apply: http://dpiit.nic.in/
Brand Promotion of Indian Brands in Footwear and Leather
Sector sub-scheme Details
Collateral Security: As per Norms
Processing Fees: As per Norms
Scheme Validation: Still Active – till 2026