Lucknow: In a major step towards transforming Uttar Pradesh into an ‘Udyam Pradesh’ and achieving its goal of becoming a one-trillion-dollar economy, the Yogi Adityanath-led government is all set to roll out the Leather-Footwear Policy 2025. The draft of the policy has been finalized and is expected to receive approval soon.
The new policy aims to scale up leather and footwear production in the state, enhance branding at a global level, increase exports, and ultimately boost state revenue. Notably, Kanpur is already recognized not just across India but globally as a major leather and footwear export hub. With this policy, the government is eyeing further development and establishment of leather-footwear parks across the state.
Policy to Boost Leather-Footwear Clusters and Private Industrial Parks
The upcoming policy is expected to significantly support the expansion of leather and footwear clusters and encourage the establishment of private industrial parks. Under the scheme, developers investing in such parks will receive a range of incentives, including capital subsidies and exemptions on stamp duty.
20 Jobs Per Rs 1 Crore Investment
The policy’s focus is on large-scale employment generation and increasing export potential in the leather and footwear sector. For every investment of Rs 1 crore, the policy aims to create 20 new jobs. This will pave the way for the establishment of standalone leather and footwear units, machinery manufacturing units, and mega anchor units with investments ranging between Rs 50 crore and Rs 150 crore.
For developing clusters, a minimum investment of Rs 200 crore will be required, and for allied leather and footwear units and private parks, the threshold will be Rs 150 crore. Each of these units is projected to create between 1,000 and 3,000 employment opportunities.
Incentives for Setting Up Industrial Parks
With only Tamil Nadu currently having a dedicated leather and footwear policy, Uttar Pradesh becomes a frontrunner with its new initiative. Developers setting up private industrial parks across 25 to 100 acres will be eligible for up to Rs 45 crore in capital subsidy along with 100% exemption on stamp duty. These parks are to be developed and made operational within five years.
For larger parks spread over 100 acres or more, the capital subsidy can go up to Rs 80 crore, along with full stamp duty waiver. Additionally, 25% of the park area will be earmarked for green zones and basic infrastructure, supported by the state government.
UP’s Dominance in National Leather Exports
Uttar Pradesh accounts for 46% of India’s total leather exports. Cities like Agra, Kanpur, and Unnao are leading centers, with Agra hailed as the Footwear Capital of India, and Kanpur known for its safety footwear, leather accessories, and garments.
Kanpur, Unnao, and Agra house over 200 operational tanneries, while Lucknow and Bareilly are emerging as new hubs in the leather and non-leather sector.
With a detailed roadmap in place, the Uttar Pradesh Leather-Footwear Policy 2025 is poised to be a gamechanger in revitalizing the sector, driving employment, and accelerating export-led growth in the state.
