The Indian government has finally decided to harness the huge potential of leather and footwear companies. The ministry of commerce and industry has forwarded a proposal to the companies that will assist them in promoting their brands in the markets of European countries as well as the US. Not only will these findings help them promote their brands, but also it will assist them in making world-class products.
This is said to be an assistance provided under the ‘Indian footwear, leather and accessories program’ sub-scheme of the Indian government. For what is known, the financial aid will cover only fifty percent of total cost of the project. For example – publicity campaigns, display in international show-rooms, promotional activities, charges for registration of brand name in the international market etc.
So, why after all these years has the government felt the need to extend financial support to these industries? According to reports, the ministry has finally recognized the immense potential of domestic industries. They are the key to wealth and success of India in the global market. In order to gain a strong foot in international markets, the ministry has decided to render their support to these companies. Also, most of the leather and footwear companies currently export their products to international brands. This has provided them with enough knowledge and experience to start with their own brands. India is famous for its unique and original designs, thanks to its diversity. Now they can start with their international venture into the footwear and leather market.
The sub-scheme aims at providing an amount of rupees 3 crores to each company, each year for three years to support the costs and charges that fall under the ‘eligible’ criteria. The company management can hold themselves accountable for the rest of the 50 percent of the total cost.
However, there are more changes required in the plan as not everyone is happy with the terms and conditions of the sub-scheme.