The Indian State of Tamil Nadu Releases Footwear and Leather Incentives for 2022
On Tuesday, the government of Tamil Nadu announced the Footwear and Leather Goods Incentive Policy 2022, which aims to attract 20 billion rupees of investment and create more than 200,000 jobs. The policy is valid until March 31, 2025, and will be revised regularly.
M. K. Stalin, Chief Minister of India, said that the "Footwear and Leather Products Policy 2022" provided by the government includes two plans. The first plan is to support the production of footwear and leather products (FLP), and the second plan is to support the development of footwear and leather design centers.
In the first plan, considering the high asset turnover rate of footwear and leather products manufacturing, the government provides subsidies to enterprises based on turnover in a certain proportion in each fiscal year. For industries related to footwear manufacturing or supporting industries outside the cluster, 10% of the eligible fixed asset investment will be given as a subsidy, which will be distributed 10 times a year. The government also said that for footwear and leather products enterprises that export more than 50% of their products, 50% of their physical and digital marketing expenses will be reimbursed, and the maximum amount for each company is RP. 2 million per year for five years.
After completing the minimum investment and employment standards, the footwear and leather product design center will be eligible to receive a fixed capital subsidy of 5% of the qualified fixed asset investment, which will be paid in five equal amounts each year. Design centers established in greenfield or brownfield clusters will be eligible for 50% rent reimbursement during the standard investment period, up to RP. 3 million per year.
The government will create new non-leather footwear clusters and provide the infrastructure through agencies such as the Tamil Nadu State Industry Promotion Agency. Because of the high employment rate of women in the leather industry, the Tamil Nadu State Industrial Development Authority will build dormitories for working women within or around the cluster with funding from the Tamil Nadu Fund.
Source: China Light Industry Machinery Association
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