Uttar Pradesh’s new footwear policy aims to create 22 lakh jobs by 2030, positioning the state as a global manufacturing hub for leather and non-leather footwear. With incentives like subsidies and cluster-based development, the policy targets ₹4 lakh crore turnover and ₹1.1 lakh crore in exports, leveraging cities like Agra and Kanpur.
Uttar Pradesh Unveils Bold Footwear Industry Strategy
The Uttar Pradesh government, under Chief Minister Yogi Adityanath, is set to roll out a transformative Footwear Policy 2025 to boost the state’s leather and non-leather footwear industries. Announced in August 2025, the policy aims to generate 22 lakh jobs and establish UP as a global manufacturing hub, capitalizing on India’s position as the world’s second-largest leather producer and consumer. The initiative aligns with the Union Budget 2025’s “Focus Product Scheme,” which targets ₹4 lakh crore in turnover and over ₹1.1 lakh crore in exports for the footwear and leather sector nationwide.
The policy emphasizes a cluster-based development model, with cities like Agra, Kanpur, and Unnao—already renowned for their footwear industries—set to play pivotal roles. Agra, often called India’s “footwear capital,” hosts over 200 tanneries alongside Kanpur and Unnao, making these regions ideal for scaling production. The state plans to develop flatted factory complexes and footwear clusters to enhance infrastructure, streamline supply chains, and foster economies of scale. These clusters will integrate production, design, research, and training, creating a robust ecosystem to attract both domestic and global investors.
To make UP a competitive destination, the policy offers a comprehensive package of incentives. These include capital subsidies of up to ₹80 crore for footwear parks spanning over 100 acres, 100% stamp duty exemptions, and export promotion benefits like freight subsidies and warehousing support near ports. Additionally, a ₹2 per unit subsidy on electricity for five years, capped at ₹60 lakh, and ₹1 crore for patent and copyright expenses under research and development are part of the package. These measures aim to reduce business costs and enhance global competitiveness, particularly for export-oriented units.
The policy also prioritizes skill development to support long-term growth. Special Footwear Training Institutes will be established in major industrial areas, collaborating with leading design and technology institutes to train a skilled workforce. This focus on human capital is critical, as the footwear sector is labor-intensive, employing over 15 lakh people currently in UP alone. The initiative is expected to create opportunities for both skilled and unskilled workers, with a strong emphasis on MSMEs, which are key to job creation in the sector.
The Union Budget 2025 complements UP’s efforts by introducing the Focus Product Scheme, which supports design capacity, component manufacturing, and machinery for non-leather footwear production. This scheme also exempts basic customs duty on wet blue leather to facilitate imports for value addition, further boosting employment. Global brands like Nike, Adidas, and Puma are increasingly betting on India as a manufacturing hub under the “China-plus-One” strategy, with Tamil Nadu already attracting investments from companies like Hong Fu and Pou Chen. UP aims to emulate this success by leveraging its raw material availability and skilled workforce.
The policy’s integrated approach includes consultations with industry stakeholders, including exporters, manufacturers, and academic experts, to ensure a practical and inclusive framework. The draft is nearing completion and is expected to receive Cabinet approval before the end of 2025, with implementation planned in phases to ensure sustainable growth. With these efforts, UP aims to contribute significantly to India’s goal of becoming a $1 trillion economy while establishing itself as a leader in global footwear exports.
Disclaimer: This article is based on information sourced from recent news reports, government announcements, and industry insights available on the web. The data and projections are subject to change based on policy implementation and market dynamics. Readers are advised to verify details with official sources for the most accurate information.