Uttar Pradesh has approved its new Leather, footwear and non-Leather footwear area development policy 2025 with the aim of making the state a stronger player in both leather and non-leather products. The policy offers attractive subsidies to entrepreneurs looking to set up manufacturing units.
The state is already a leading hub for these industries with its leather market in Kanpur and Unnao together host more than 200 active tanneries, while Agra is often called the footwear capital of the country.
With the new policy in place, officials expect 22 lakh new jobs to be created in the leather sector. At present, the sector employs more than 15 lakh people.
“This policy will not only boost leather and non-leather footwear manufacturing units but will also provide special encouragement to the ancillary units associated with it creating an integrated footwear manufacturing ecosystem”
Rakesh Sachan, MSME Minister, Government of Uttar Pradesh
The policy offers a range of subsidies. Land subsidy for single unit and footwear machinery plants is 25% in Pashchimanchal and 35% in other regions. For cluster and mega anchor units, it rises to 75% in Pashchimanchal and 80% elsewhere.
Other incentives include 100% stamp duty exemption, five-year reimbursement of Employees’ Provident Fund, and a 30% subsidy on technical courses related to leather and footwear.
There is also a ₹2 per unit electricity subsidy for five years, capped at ₹60 lakh, and 75% support on transport and logistics costs up to ₹10 crore. For research and development, the policy will cover up to ₹1 crore for patent and copyright expenses.
Source – Hindustan Times
