The Uttar Pradesh government has unveiled its Footwear, Leather and Non-Leather Sector Development Policy 2025 with a strong focus on industrial development in the relatively backward regions of Madhyanchal, Purvanchal and Bundelkhand. Chief Minister Mr. Yogi Adityanath emphasized that the vision behind this policy is to ensure that industrial progress is not restricted to Western Uttar Pradesh but spreads equally across the state.
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Special Land Subsidy for Backward Areas
Under the new policy, stand-alone footwear, leather products and machinery units in Madhyanchal, Purvanchal and Bundelkhand will receive land cost subsidies up to 35 percent, while in Paschimanchal the benefit will be 25 percent. Mega anchor units and clusters will enjoy even higher subsidies up to 80 percent in the backward areas and 75 percent in Paschimanchal.
This subsidy will apply only to land acquired from industrial authorities, state government institutions or clusters under the policy. The final subsidy amount will be based on the actual allotment price, excluding stamp duty and registration charges.
Attractive Capital Subsidy for Investors
To make Uttar Pradesh a hub for footwear and leather manufacturing, the Yogi government has also announced an additional capital subsidy apart from central government assistance. Stand-alone units in backward regions will receive a 30 percent capital subsidy, with a maximum cap of Rs. 45 crore over five years. For Paschimanchal, the subsidy is set at 20 percent with a maximum of Rs. 30 crore.
Allied leather units across the state will receive 25 percent capital subsidy, while mega anchor units and clusters in backward areas will get 35 percent, with a ceiling of Rs. 700 crore over five years. Annual subsidy for a single unit will not exceed Rs. 140 crore in backward areas and Rs. 120 crore in Paschimanchal.
Transforming Eastern UP into a Growth Hub
The policy aims to transform eastern Uttar Pradesh into a new hub for investment, manufacturing and employment. Key districts such as Kanpur, Gorakhpur, Varanasi, Prayagraj, Jhansi, Chitrakoot, Azamgarh and Banda, along with the state capital Lucknow, are expected to benefit directly.
By creating lakhs of new jobs locally, this initiative will not only strengthen regional development but also elevate Uttar Pradesh as a major global exporter of footwear and leather products.
