UP’s New Leather Policy Targets 2.2 Lakh Jobs

Lucknow | 12. August 2025 : Uttar Pradesh has a new policy. It’s for the leather, leather, and non-leather sectors. The policy, which is good until 2025, aims to make the state’s industries stronger. It will give good subsidies to business owners. The policy plans to create 2.2 lakh new jobs. This will be a big boost for the footwear industry. Right now, this industry employs over 1.5 lakh people.

A Boost for India’s Leather Production

MSME Minister Rakesh Sachan said India is the second-largest producer and user of leather. So, Uttar Pradesh’s role in this sector is very important.

Kanpur and Unnao have over 200 tanneries. Agra is known as the “footwear capital.” The new policy will not just help make leather and non-leather footwear. It will also help other related businesses. This will create a full system for making footwear.

Help for New Businesses

The government offers land at a discount. They provide land at a 25% discount in one part of the state and 35% in others. Subsidies for setting up groups of businesses are even higher: 75% and 80%.

The policy also has many other benefits. For example, it gets rid of 100% of the stamp duty fee. It also pays back employees’ provident fund for five years. Plus, it gives a 30% discount on classes for leather and footwear skills. The government also offers a ₹2 discount per unit on electricity for five years. This discount is capped at ₹60 lakh.

It also gives a 75% discount on transport and shipping, up to ₹10 crore. Lastly, it offers ₹1 crore for patent and copyright costs. This money is for research.

Investment and Export Goals

The policy has clear minimum investment goals:

• A single business: ₹50 to ₹150 crore.
• Footwear machinery businesses: ₹50 to ₹150 crore.
• A very large anchor business: ₹150 crore.
• A group of businesses: ₹200 crore.
• A parts manufacturing business: ₹150 crore.

The state wants its exports to reach $8 billion in the next five years.

In 2023-24, India’s exports of footwear and non-leather goods were $4.7 billion. Top customers were the US, Germany, the UK, Italy, France, Spain, and the Netherlands. The state’s exports are expected to reach $8 billion soon.

Uttar Pradesh is already a big center for the country’s footwear, leather, and non-leather industries. The state’s leather market is worth about ₹350 crore.

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