Government could extend PLI scheme to leather goods

By

Isabelle Crossley

Published
Oct 18, 2022

The Union Government is looking into proposals to extend its Rs 35,000 crore production-linked incentive scheme. In order to increase domestic manufacturing and create jobs, the government could extend the scheme to a number of sectors including leather. 

“The proposals are at discussion stage,” an anonymous official told the Press Trust of India. “Inter-ministerial talks are going on to extend PLI benefits to all these different sectors as there has been demand from industry and certain departments.” 
 
The Minister for Commerce and Industry Piyush Goyal mentioned in September that the government was considering extending the PLI scheme. The scheme is designed to make India’s manufacturing sector globally competitive to boost its exports, reduce its trade deficit, and create employment opportunities to improve citizens’ living standards. 

India’s leather goods industry spans footwear, accessories, and other leather goods and is responsible for employing thousands of people across the country. India produces around 13% of the world’s leather, according to Invest India. 
 
Other industries the government is considering extending the scheme to include bicycles, certain telecom products, toys, some chemicals, and a number of vaccine materials. The PLI scheme currently covers 14 industries including textiles, white goods, auto components, and high efficiency solar PV modules among others.