Under the leadership of Chief Minister Yogi Adityanath, UP government is set to introduce a new policy to boost the state’s leather and non-leather footwear industries. The goal is to make Uttar Pradesh a top manufacturing hub by using a well-planned development model and promoting growth through industrial clusters. This step comes as India, the world’s second-largest leather producer and consumer, works to expand its presence in global markets. Cities like Agra, Kanpur, and Unnao, already known for their footwear industries, are expected to play a key role. Thanks to their skilled workers, raw materials, and improving infrastructure.
During a recent review meeting in Lucknow, CM Yogi Adityanath directed departmental officials to prioritise a cluster-based development mode. He called for a clear demarcation of areas that are most suitable for the footwear industry. He laid emphasis on the need to develop infrastructure such as flatted factory complexes to provide a conducive environment for industrial units.
A dedicated policy for the leather and non-leather footwear sector is set to position the state as a global manufacturing hub.
The integrated approach will connect production, design, research, and training on one platform, attracting investments and generating large-scale… pic.twitter.com/Ojf3Rztz3Z
— Government of UP (@UPGovt) August 2, 2025
“There is a pressing need to offer better working conditions for units by providing common infrastructure,” he said. “A focused cluster approach will enable better supply chain linkages, economies of scale, and shared services, essential for global competitiveness.” The Micro, Small and Medium Enterprises (MSME) department informed the Chief Minister Yogi that the policy has the potential to create around 22 lakh jobs in the coming years, if it is aligned with high-growth manufacturing clusters.
One of the most significant elements of the proposed policy is its integrated development model, which seeks to unite production, design, research, and training within a single framework. This holistic approach aims not only to enhance quality and innovation but also to establish a self-reliant and localised ‘design-to-delivery’ ecosystem.
The Chief Minister said that such an approach can attract large-scale investments and generate significant employment opportunities. “This integrated model is essential to position Uttar Pradesh as a key player in the global footwear market,” he stated.
Unlike past initiatives that largely centred around traditional leather products, the upcoming policy gives equal importance to the non-leather footwear sector. With a growing global demand for synthetic, eco-friendly, and vegan footwear.
Support for units producing ancillary components such as buckles, soles, zips, insoles, threads, dyes, and moulded parts will be a key feature. Moreover, specialised support will be extended to manufacturers of equipment and machinery essential for production processes like stitching, moulding, and cutting.
The new footwear policy will give special importance to Agra, Kanpur, and Unnao: three cities already known for their strong presence in the leather and footwear industries. Agra, often called the ‘Footwear Capital’ of India, along with Kanpur and Unnao, has a large number of tanneries and manufacturing units. These cities already have the skilled workforce and infrastructure needed to grow further.
“Agra, Kanpur, and Unnao have the right combination of experience, skilled people, and existing factories,” said a senior MSME department official. “We want to use these strengths to create world-class industrial clusters.”
Alongside these established cities, the policy will also look for new areas across the state that can be developed as future growth centres. These will be chosen based on the availability of skilled workers, access to land, and good connections to major domestic and international markets.
During discussions, officials also pointed out current challenges in the industrial sector. These include poor land use, long delays in lease approvals, illegal subletting, and unused plots. To fix these problems, the government is preparing a new policy called the Uttar Pradesh Industrial Asthan Policy. This will focus on making land allotment faster and more transparent through e-auctions and clear rules.
Land prices will be determined on an area-wise basis, and while market-based rates will apply for most units, anchor units will benefit from specially set land prices as determined by the state.
CM Yogi also called for a simplified, accountable, and time-bound regulatory system to ensure investor confidence. The new industrial policy will include:
- Online portals for faster land allotment and service approvals
- A single-window system for industrial clearances
- E-governance to ensure transparency
- Integrated monitoring dashboards for project tracking
“This will eliminate unnecessary delays, bring efficiency, and create an investor-friendly environment,” the CM noted.
To tackle the issue of underutilised industrial land and reduce the financial burden on entrepreneurs, the Chief Minister Yogi has also proposed the introduction of a ‘lease-rent model’. This innovative model will aim at optimising the use of available land while reducing the need for hefty upfront capital investment. Instead of purchasing land, industrial units can now operate on leased land, which will significantly lower the entry barriers for businesses, especially Micro, Small, and Medium Enterprises (MSMEs).
To make Uttar Pradesh a more attractive destination for footwear manufacturing, the new policy promises a comprehensive package of financial and infrastructural incentives. These incentives include capital assistance, stamp duty waivers, and support for power supply and logistics. Private developers setting up industrial parks will also be eligible for targeted benefits. For export-oriented units, the government plans to offer additional support through reimbursement schemes, freight subsidies, and the development of warehousing facilities near ports. These steps will reduce the business costs and support large-scale production in both leather and non-leather sectors.
Understanding the importance of a skilled workforce to support long-term growth, the policy will focus on training and research. Special Footwear Training Institutes will be set up in major industrial areas, working with top design and technology institutes. Short-term training programs will be offered to rural youth and women so that more job opportunities can be created. The policy also supports setting up R&D labs for new materials, comfortable designs, and eco-friendly production. “Training, research, and design are as important as manufacturing. We want to build a future-ready workforce and create better jobs,” said the Chief Minister.
The footwear policy is likely to give a major boost to exports, especially from key centres such as Agra and Kanpur. Uttar Pradesh already plays a pivotal role in India’s leather exports, and the policy aims to enhance this by improving product quality to match international standards. It will also facilitate participation in global trade expos and B2B platforms, promote “Made in UP” branding, and extend incentives to export-focused enterprises. Domestically, the policy is geared towards reducing dependency on imported non-leather components by nurturing local supply chains and fostering homegrown innovation. These efforts will contribute to strengthening the state’s position as a major player in both export and domestic markets.
Recognising the environmental challenges associated with leather processing, the policy makes sustainability a central focus. Several eco-friendly measures are being proposed, including the modernisation of common effluent treatment plants (CETPs), adoption of cleaner technologies, and integration of renewable energy into production systems. The government also plans to provide incentives for units that switch to environmentally responsible raw materials. Ensuring adherence to both national and global environmental standards, these initiatives aim to align Uttar Pradesh’s leather industry with global Environmental, Social, and Governance (ESG) expectations, thereby enhancing its international acceptance and credibility.
The Uttar Pradesh MSME department is actively engaging with industry stakeholders to gather insights and suggestions for refining the policy. These consultations involve exporters, manufacturers, academic experts, small business owners, and potential global investors. By incorporating diverse perspectives, the government aims to ensure that the final policy is comprehensive, inclusive, and grounded in practical realities. According to a senior government official, the policy draft is nearing completion and will soon be submitted for Cabinet approval. The official rollout of the policy is anticipated before the end of this year.
