UP drafts new Leather and Footwear Policy; subsidies, stamp duty exemption among key features

The Yogi Adityanath government has prepared the draft of the new UP Leather and Footwear Policy-2025 and it is set to be rolled out soon.

The draft of the new policy is finalised and awaits approval, the government said in a statement on Thursday. The policy is expected to give a push to Uttar Pradesh's target of becoming a USD 1 trillion economy.

Aligned with Chief Minister Yogi Adityanath's vision of transforming the state into 'Udyam Pradesh', the policy aims to scale up production, boost exports, enhance global brand presence in the leather and footwear sector and increase the state's revenue, it said.

Kanpur, already renowned as a key hub for leather and footwear exports in India and globally, will play a central role in this strategic push, it added.

"The new policy will accelerate the development of leather and footwear clusters and promote the establishment of private industrial parks across the state. Developers investing in such parks will benefit from attractive incentives, including capital subsidies and 100 per cent stamp duty exemptions," the government said.

Under the policy, parks developed on 25-100 acres will be eligible for up to Rs 45 crore in capital subsidies, parks over 100 acres can receive up to Rs 80 crore. All parks must be completed within five years, and at least 25 per cent of the land must be allocated to green and open spaces, the government added.

"Investors will be required to invest a minimum of Rs 150-200 crore depending on the nature of the unit (plant, cluster, or park), potentially generating 1,000-3,000 new jobs per unit. For every Rs 1 crore invested, the state expects to create 20 employment opportunities," it stated.

Notably, Uttar Pradesh contributes 46 per cent of India's total leather exports, with Agra, Kanpur, and Unnao as the leading centres.

Agra is recognised as the footwear capital, while Kanpur is a global hub for safety footwear, leather accessories, and garments. Emerging centres such as Lucknow and Bareilly are also poised for rapid growth under the new policy, it said.

Tamil Nadu is the only other state with a dedicated footwear and leather policy, so Uttar Pradesh's initiative marks a bold and strategic move to cement its leadership in the sector, it noted.

"The Uttar Pradesh Leather and Footwear Policy-2025 is set to unlock new opportunities, generate massive employment, and catalyze industrial development, ushering in a new era of economic growth for the state," the government said.