Lucknow: Uttar Pradesh has introduced its Footwear, Leather and Non-Leather Sector Development Policy, 2025, offering a package of incentives aimed at attracting investment, expanding manufacturing and strengthening the state’s position in the domestic and global footwear and leather industry.
The policy, effective from August 8, 2025, will remain in force for five years unless amended or withdrawn earlier. The MSME and Export Promotion Department is the nodal department, while the Directorate of Industries is responsible for implementation.
The framework covers the wider value chain, including leather and non-leather footwear, accessories, components, machinery, research and development, design facilities, clusters and industrial parks.
Policy Targets Investment, Exports and Manufacturing Expansion
Uttar Pradesh contributes nearly 46% of India’s leather exports, according to the state government’s Invest UP portal. The government identifies Agra and Kanpur among the state’s major footwear and leather manufacturing centres.
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The policy seeks to:
- Attract domestic and foreign investment into the sector.
- Expand footwear and leather exports.
- Promote non-leather and alternative-material products.
- Encourage modernisation and technology adoption.
- Develop clusters and dedicated industrial parks.
- Strengthen skills, design and research capabilities.
- Support more sustainable manufacturing practices.
The policy also covers products such as handbags, wallets, travel goods, gloves, leather garments, saddlery and other allied products. Non-leather footwear made from materials such as PU, EVA, rubber, synthetics and textiles is also covered.
Land and Capital Incentives for Eligible Units
Eligible standalone footwear, leather-product and machinery units can receive land-cost grants of up to 35% in Madhyanchal, Purvanchal and Bundelkhand, while the corresponding support in Paschimanchal can reach 25%.
The support is higher for mega anchor units and clusters, with land-cost grants of up to 80% in Madhyanchal, Purvanchal and Bundelkhand and up to 75% in Paschimanchal. The grant applies to eligible land obtained through industrial development authorities, state government entities or qualifying clusters.
The policy also provides capital subsidies for eligible investments. For standalone manufacturing units, the subsidy can reach 30% of eligible capital investment in Madhyanchal, Purvanchal and Bundelkhand, compared with 20% in Paschimanchal, subject to the applicable ceilings and conditions.
Industrial Parks to Get Infrastructure Support
The policy provides incentives for developing dedicated private industrial parks for the footwear and leather sector.
Such parks can include common infrastructure such as:
- Internal roads and drainage
- Water and sewerage systems
- Effluent-treatment facilities
- Electricity and gas distribution
- Warehousing and testing facilities
- Training and research infrastructure
- Fire-fighting and other common facilities
The policy also envisages plug-and-play infrastructure and faster land-allotment mechanisms through the state’s single-window system.
Training, Jobs and Power Subsidies
The policy includes incentives linked to employment and workforce development.
Eligible units employing more than 1,000 direct workers can receive reimbursement of the employer’s EPF contribution for five years, subject to the prescribed ceiling.
Training assistance is also available, with support of up to ₹20,000 per trainee for women, SC/ST candidates and persons with disabilities.
Eligible industries meeting the prescribed employment conditions can also receive a power-tariff subsidy of ₹2 per unit for five years, subject to policy conditions.
Push for Design, R&D and Innovation
The policy provides financial support for intellectual property, product design and research.
Key provisions include:
- Reimbursement of a substantial share of eligible patent, copyright, trademark and GI registration expenses, subject to prescribed limits.
- Support for design-innovation laboratories and footwear prototyping centres.
- Grants for Centres of Excellence focused on research, training and innovation.
- Up to 10 Centres of Excellence can be supported during the policy period.
The policy also supports sustainable manufacturing through incentives for environmental and sustainability certifications, renewable-energy initiatives and alternative materials.
100% Stamp-Duty Exemption for Eligible Units
Eligible units can receive 100% stamp-duty exemption, subject to the prescribed conditions. The government’s incentive portal states that the exemption is provided against a bank guarantee of an equivalent amount, which is released after commencement of commercial production.
The policy also provides support for certain logistics and machinery-relocation costs, including assistance for relocating eligible machinery from abroad to Uttar Pradesh.
Online Application Through State Investment System
The Directorate of Industries is the nodal agency for implementation, with applications to be processed through the state’s online investment and incentive-management mechanisms.
The policy is available through Invest UP and the UP MSME 1-Connect portal, which also provides an incentive calculator and details of individual benefits.
The policy’s actual impact will depend on investment commitments translating into operational units, industrial parks, employment and production. Project-level approvals and incentive disbursements should therefore be tracked separately from the policy’s stated targets and provisions.
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