Looking to boost its $trillion economy goal and create local employment opportunities, Uttar Pradesh has put a new leather policy on the anvil.
Taking its agenda forward, UP is taking steps to position its footwear, leather and non-leather manufacturing sector on the global map.
Chairing an MSME department meeting today, Chief Minister Yogi Adityanath highlighted the state’s strong base—skilled artisans, raw materials, and industrial hubs like Agra, Kanpur, and Unnao.
He called for a practical, results-driven policy to unlock its full potential.
While reviewing the draft of the UP Footwear, Leather and Non-Leather Sector Development Policy 2025, he asked officials to adopt a cluster-based development model as a core strategy.
He emphasised the importance of clearly identifying regions in the state best suited for industry-specific development.
He stated that integrating production, design, research and training on a single platform could not only attract large-scale investments, but generate employment for the youth.
The CM stressed the need to develop key infrastructure like flatted factory complexes to offer modern, efficient workspaces for industrial units.
Officials informed him that the proposed policy could generate around 2.2 million new jobs in the coming years, marking a potential turning point in UP’s rise as a global hub for footwear and leather manufacturing.
Currently, India ranks as the second-largest producer and consumer in the world in this sector, with UP playing a significant role.
Over 200 operational tanneries are located in Kanpur and Unnao, while Agra is recognized as the ‘Footwear Capital’ of India.
Yogi emphasised the policy should not only promote leather and non-leather footwear manufacturing units, but also extend special incentives to ancillary units producing components like buckles, zips, soles, insoles, laces, dyes, chemicals, heels, threads, tags and labels.
He stressed support for units manufacturing specialised machinery for leather stitching, cutting, moulding, and production of non-leather safety shoes.
This integrated approach would help establish a complete and localised ‘design-to-delivery’ ecosystem within the state.
Additionally, he highlighted the need for robust strategies for skilling, packaging, and marketing to enhance product quality and competitiveness.
The meeting also included a discussion on the proposed UP Industrial Asthan Policy. Officials noted several challenges in the current system, including inefficient land utilisation, lease execution complexities, unauthorised mortgaging and subletting, and idle plots.
The new policy aims to eliminate these hurdles by introducing a transparent, streamlined, and time-bound system.
Plot allotment will be conducted via e-auctions or other transparent methods, with land prices determined area-wise. However, land rates for anchor units will be set by the state government.
Calling the proposed policy “practical and forward-looking,” the CM stated, “a clear, simplified, and accountable process—from land allotment to lease execution, construction, and production—would provide confidence to investors and catalyze industrial growth.”
He suggested the adoption of a ‘lease rent model’ to ensure optimal utilisation of limited industrial land, minimise capital expenditure for investors and accelerate development.
To promote private industrial parks, Yogi advocated for incentives such as capital subsidies, stamp duty exemptions, and electricity and logistics support, along with a single-window approval system.
He directed officials to develop an integrated online portal for applications and disbursement of incentives to ensure a fully digital, seamless, and trackable policy implementation process.