In a significant development aimed at strengthening its position as a leader in the leather and footwear sectors, the Uttar Pradesh government is on the verge of approving the much-anticipated UP Leather and Footwear Policy-2025.
According to senior officials, the draft of the policy has been finalized after extensive consultations and is expected to be presented before the state Cabinet for formal approval shortly.
Once implemented, Uttar Pradesh will join Tamil Nadu as one of the only two states in India to have a specialized, dedicated policy framework for the promotion of the leather and footwear industries.
This move underscores the state’s strategic focus on these sectors, given their enormous potential for employment generation, export earnings, and industrial development.
Highlighting the key objectives of the new policy, officials stated that it has been crafted to accelerate the growth of leather and footwear clusters across various districts.
In addition, it seeks to encourage private sector participation in the establishment of modern industrial parks through the provision of substantial incentives.
Developers willing to invest in setting up such parks will be eligible for attractive benefits, including generous capital subsidies and complete exemptions from stamp duty, thus lowering their initial investment burden considerably.
“The overarching aim of this policy is to scale up production capacities, enhance the export potential of leather and footwear products, build global brand recognition, and significantly boost the state’s revenue, while simultaneously creating a robust ecosystem for industrialization,” an official involved in the policy’s formulation explained.
One of the policy’s cornerstones is Kanpur, which already enjoys a prestigious reputation as one of India’s leading hubs for leather goods and footwear exports.
Kanpur’s expertise and infrastructure will serve as the nucleus for the policy’s implementation strategy, driving momentum not only locally but also providing a model for the development of similar hubs elsewhere in the state.
The policy outlines a structured system of incentives for developers. Industrial parks established over an area of 25 to 100 acres will be eligible for capital subsidies of up to ₹45 crore.
In the case of mega parks spanning over 100 acres, subsidies could go as high as ₹80 crore. Importantly, all parks must adhere to strict environmental and urban planning norms, including a mandate that at least 25% of the total area be dedicated to green belts, parks, and open spaces, promoting sustainable and eco-friendly industrialization.
In terms of investment requirements, the policy stipulates that developers must bring in a minimum investment of ₹150 crore to ₹200 crore, depending on the nature and scale of the proposed unit — whether a manufacturing plant, an industrial cluster, or a full-fledged industrial park.
These investments are projected to have a direct impact on job creation. The state government anticipates that every ₹1 crore invested will lead to the generation of approximately 20 new employment opportunities.
Consequently, a single unit could potentially create anywhere between 1,000 and 3,000 new jobs, thereby contributing significantly to the state’s employment landscape.
Uttar Pradesh currently contributes an impressive 46% of India’s total leather exports, with key centers like Agra, Kanpur, and Unnao at the forefront.
Agra, often hailed as the footwear capital of India, specializes in mass-market footwear manufacturing for both domestic and international markets.
Kanpur, on the other hand, has carved out a strong niche in the production of safety footwear, leather garments, and premium leather accessories, making it a prominent name on the global leather map.
Officials further emphasized that the scope of the policy extends beyond traditional hubs. Emerging centers such as Lucknow and Bareilly are also poised to witness rapid development in the leather and footwear sectors.
With the right infrastructure support and financial incentives now being laid out, these regions are expected to evolve into major contributors to Uttar Pradesh’s industrial and export growth.
The policy is being seen as a key instrument not only for regional economic development but also for reinforcing India’s position as a global powerhouse in the leather and footwear industries.
By fostering innovation, sustainability, and competitiveness, the UP Leather and Footwear Policy-2025 aims to usher in a new era of prosperity for both investors and workers in the state.
