“Uttar Pradesh’s ambitious footwear and leather policy aims to create 22 lakh jobs by fostering a ‘Design to Delivery’ ecosystem. With incentives like capital subsidies and footwear clusters, the state seeks to become a global manufacturing hub, boosting exports and employment. The policy supports both leather and non-leather sectors, leveraging UP’s skilled workforce and raw material availability.”
UP Unveils Footwear Policy to Generate 22 Lakh Jobs
Uttar Pradesh Chief Minister Yogi Adityanath has announced a transformative policy aimed at positioning the state as a global leader in footwear and leather manufacturing. Unveiled on August 1, 2025, the Uttar Pradesh Footwear, Leather, and Non-Leather Sector Development Policy 2025 is designed to create an integrated ecosystem, from design to delivery, with the potential to generate 22 lakh jobs in the coming years.
The policy focuses on developing footwear clusters and flatted factory complexes across the state, particularly in regions like Agra, known as India’s “Footwear Capital,” and Kanpur, a hub for leather tanneries. These clusters, spanning 25–100 acres, will receive capital subsidies of up to Rs 45 crore, while larger parks exceeding 100 acres could secure up to Rs 80 crore. Each investment unit is expected to bring in Rs 150–200 crore, creating 1,000–3,000 jobs per unit.
To attract global and domestic investors, the policy offers incentives such as 100% stamp duty exemptions and export promotion benefits. It also emphasizes support for ancillary industries producing components like buckles, zips, soles, and specialized machinery for leather and non-leather footwear. This holistic approach aims to strengthen the supply chain, reduce import dependency, and enhance competitiveness against major exporters like China, which dominates 67% of global footwear production.
Uttar Pradesh’s MSME department highlighted that the state, with over 200 tanneries in Kanpur and Unnao, is well-positioned to capitalize on its traditional skills and abundant raw materials, including 20% of the world’s cattle and buffalo. The policy aligns with India’s broader goal of becoming a $1 trillion economy, with UP aiming to contribute significantly through footwear exports, projected to reach $14 billion by 2030.
The state is also introducing the UP Industrial Asthan Policy to simplify land allocation through e-auctions and promote private industrial parks, further easing investment barriers. This comes alongside the Union Budget 2025’s Focus Product Scheme, announced by Finance Minister Nirmala Sitharaman, which targets ₹4 lakh crore in turnover and ₹1.1 lakh crore in exports for India’s footwear and leather sector, reinforcing UP’s ambitions.
Agra and Kanpur are set to host two of the three planned footwear parks, with Noida also earmarked for a 100-acre park. Additionally, 300 acres across Agra and Kanpur will be developed as leather parks, with an estimated investment of ₹8,000 crore. These initiatives are expected to attract global brands like Nike, Adidas, and Puma, which are increasingly looking to India as a manufacturing hub under the “China plus one” strategy.
The policy also prioritizes skill development and research, integrating production, design, and training on a single platform. This is critical as India’s per-capita footwear consumption remains low at 1.66 pairs annually compared to the global average of 3 pairs, signaling vast domestic growth potential as urbanization and incomes rise.
Disclaimer: This article is based on recent news reports, government announcements, and industry insights from sources like knnindia.co.in, timesofindia.indiatimes.com, and livemint.com. Information is accurate as of August 6, 2025, but subject to change as policies evolve. Readers are advised to verify details with official government sources.