Uttar Pradesh’s leather industry is poised for global expansion, leveraging its robust infrastructure and skilled workforce. The state aims to boost exports through eco-friendly practices, innovation, and government support like the IFLDP. Kanpur’s mega leather cluster and strategic trade policies position UP as a key player in the $405 billion global leather market by 2030, despite challenges like environmental compliance.
Uttar Pradesh’s Leather Sector Targets Global Dominance
Uttar Pradesh (UP), a powerhouse in India’s leather industry, is intensifying efforts to capture a larger share of the global leather market, projected to reach USD 405.28 billion by 2030 with a CAGR of 6.6%. The state, contributing 27.77% to India’s leather exports in FY24, is strategically positioning itself as a global hub, driven by its rich raw material base, skilled artisans, and proactive government policies.
Kanpur, a key leather hub, is at the forefront with the Centre’s proposed mega leather cluster in Ramaipur. This initiative aims to modernize infrastructure, enhance production, and align with global environmental standards, addressing the sector’s pollution concerns. UP’s leather industry, employing over 4.42 million people, including 30% women, benefits from India’s 20% share of global cattle and buffalo and 11% of goat and sheep populations, ensuring abundant raw materials.
The state’s strategy hinges on the Indian Footwear and Leather Development Programme (IFLDP), backed by INR 1,700 crore, which promotes sustainable tanning and technological upgrades. UP is also capitalizing on the “China Plus One” strategy, attracting global buyers seeking alternatives amid US-China trade tensions. By enhancing eco-compliance and fostering innovation through partnerships with the Council of Scientific and Industrial Research (CSIR-CLRI), UP aims to develop biodegradable tanning agents and smart leather composites.
Footwear, accounting for 51.9% of India’s leather exports, is a priority, with UP’s Kanpur and Agra clusters producing high-quality leather goods for markets like the USA (17.22%), Germany (11.98%), and the UK (10.43%). However, challenges persist, including competition from synthetic leather substitutes and stringent environmental regulations. The tanning process, notorious for chemical waste, faces scrutiny, prompting UP to invest in zero-liquid discharge systems and Common Effluent Treatment Plants (CETPs).
To boost competitiveness, UP is encouraging collaborations with global fashion houses under the Make in India initiative and upskilling artisans through the PM Vishwakarma Yojana. The state’s focus on digital effluent metering and a Green Leather Compliance Dashboard aims to ensure transparency and sustainability, positioning UP as a leader in ethical leather craftsmanship.
Despite a 10% export decline in FY24 due to weak demand in the US and Europe, UP’s leather sector is rebounding with investments from Taiwanese giants like Pou Chen Group and Feng Tay in Tamil Nadu, signaling potential for similar expansions in UP. With a vision to contribute significantly to India’s USD 47.1 billion leather industry target by 2030, UP is poised to redefine its global footprint.
Disclaimer: This article is based on recent reports, industry data, and insights from sources like the Council for Leather Exports, Invest India, and global market analyses. Information is accurate as of September 2025. For investment or business decisions, consult official government or industry sources.