The Indian government has introduced new guidelines to promote joint ventures (JVs) in the leather industry, aiming to modernize manufacturing capabilities, boost exports, and generate large-scale employment. Spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT) in collaboration with the Council for Leather Exports (CLE), the new policy framework encourages collaboration between Indian leather manufacturers and global brands, designers, and technology providers. The focus is on upgrading processes, adopting sustainable practices, and expanding India’s footprint in the global leather value chain.

Under the guidelines, JVs are eligible for financial incentives, infrastructure support, and export facilitation under schemes such as the Indian Footwear and Leather Development Programme (IFLDP) and the Remission of Duties and Taxes on Exported Products (RoDTEP). The government is offering capital subsidies, common facility centers, and design studios in leather clusters to encourage joint production and innovation. Additionally, 100% foreign direct investment (FDI) is permitted under the automatic route in the leather and footwear sector, facilitating smoother collaboration with international companies that bring in new materials, eco-friendly tanning processes, and high-end fashion know-how.

The guidelines also promote employment-linked incentives, skill development partnerships, and technology transfer agreements, particularly in areas such as automated cutting, stitching, dyeing, and waste management. JVs with a focus on environmental compliance, ethical sourcing, and global certification standards will receive preference in government-backed procurement and export promotion campaigns. With these progressive guidelines, the government aims to transform India into a global hub for high-quality leather goods and footwear, combining traditional craftsmanship with cutting-edge technology through strategic joint ventures.