Skip to main content

https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

UP Rolls Out Leather and Footwear Policy With Investment Incentives and Industry Support

Uttar Pradesh’s 2025 footwear and leather policy offers land, capital, power, training and innovation incentives to attract investment and expand the state’s manufacturing ecosystem.
Indian Masterminds Stories

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The policy, effective from August 8, 2025, will remain in force for five years unless amended or withdrawn earlier.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.

Read Also: UP Social Welfare Department Expands AI Use From Schools to Pensions and Scholarships

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.

Read Also: Uttar Pradesh Seeks Enterprise-Led GCC Growth at Zinnov Confluence 2026


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Indian Navy Mangrol
Guarding India’s Coastline: Indigenous Warship Mangrol to Join the Navy
Rajnath Singh PoK Statement
India’s Defence Exports Hit ₹38,424 Crore as Rajnath Singh Pushes for Greater Private Sector Role
Project Saksham
NHAI’s Winter Pollution Plan: Emission Control Devices for 25 DG Sets
NABARD Chairman Meets West Bengal CM
West Bengal’s Rural Growth Agenda: NABARD Chairman Meets CM Suvendu Adhikari
chhattisgarh Police IPS
Chhattisgarh Transfers 18 IPS Officers: SIA, SIB, CID and District Postings Reshuffled; Jha Amankumar Ramankumar Posted as SP (SIA)
makhana (3)
Bihar Makhana Targets Global Superfood Status, Eyes 30,000 MT Exports by 2031
hindustan-copper-ltd-resized
Hindustan Copper Appoints Tarak Nath Nayak as Unit Head of Taloja and Gujarat Copper Projects
MP CM Mohan Yadav
From Farms to Factories: MP’s ₹3,800-Crore McCain Foods Project Promises 2,000 Jobs
ADVERTISEMENT
ADVERTISEMENT
Videos
PK Jena
The IAS Officer Who Put People Before Paperwork: How PK Jena Challenged Corruption and Reformed Governance
Keshav kumar
From Police Officer to Forensic Pioneer: How Dr Keshav Kumar Made Science a Weapon Against Crime
ChatGPT Image Aug 20, 2026, 05_46_21 PM
How IPS Officer Keshav Kumar Used Forensics to Crack Gujarat’s Lion Poaching Case
ADVERTISEMENT
UPSC Stories
Aayush Sharma
Three CDS Attempts, Five AFCAT Qualifications & Medical Setback: How Aayush Sharma Secured CAPF AIR 135
After three unsuccessful SSB attempts, five AFCAT qualifications and a medical setback, Aayush Sharma...
Tushar Chaudhary IRMS
He Left Intel, Built COPAL-19, Spent Months at AIIMS, Ran Half Marathons, and Returned to UPSC—Tushar Chaudhary’s Journey to IRMS
UPSC ESE AIR 4 Tushar Chaudhary left a ₹25 LPA Intel job, built COPAL-19, spent months at AIIMS, ran...
Mayank Sachan UPSC CAPF
15+ Exam Failures, 15 Years in the Navy: How Mayank Sachan Secured AIR 343 in UPSC CAPF
Former Indian Navy sailor Mayank Sachan secured AIR 343 in UPSC CAPF 2025 after 15+ exam failures, two...
CSR NEWS
IOCL CSR
IOCL Hands Over New Classroom Facility and 40 Solar Lights in Nagaland Under CSR Initiative
Indian Oil invests around ₹40 lakh in solar lighting at Padum Pukhuri village and supports school infrastructure...
WCL community-focused CSR
WCL Director Bikram Ghosh Highlights Community-Focused CSR Approach at NCCSR 2026
Speaking at the New Delhi conference, Ghosh called CSR a “Collective Social Commitment” and highlighted...
NMDC Bacheli CSR
NMDC Bacheli Supports 181 Local Students with School Kits and Bags Under CSR Initiative 
A total of 181 students from six schools in Bhansi Gram Panchayat receive essential school items under...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Indian Navy Mangrol
Guarding India’s Coastline: Indigenous Warship Mangrol to Join the Navy
Rajnath Singh PoK Statement
India’s Defence Exports Hit ₹38,424 Crore as Rajnath Singh Pushes for Greater Private Sector Role
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
PK Jena
Keshav kumar
ChatGPT Image Aug 20, 2026, 05_46_21 PM
ADVERTISEMENT
ADVERTISEMENT