Yogi's policies boost UP's leather industry as exports cross Rs 7,000 crore
Uttar Pradesh's leather and footwear industry is witnessing renewed growth, with the state government attributing the momentum to a combination of policy support, infrastructure development
Uttar Pradesh's leather and footwear industry is witnessing renewed growth, with the state government attributing the momentum to a combination of policy support, infrastructure development and an improved business climate. Industry representatives say the government's Leather and Footwear Policy has encouraged fresh investment, strengthened exports and generated employment, helping revive a sector that had struggled with slowing growth, global headwinds and migration of skilled workers. Read Full Story Backed by incentives such as land subsidies, assistance for machinery and support for industrial infrastructure, the industry is now positioning itself for long-term expansion, with Kanpur remaining at the centre of the state's leather manufacturing ecosystem. POLICY INCENTIVES FUEL EXPANSION According to industry stakeholders, the Leather and Footwear Policy has emerged as a key driver of investment in the sector. The policy offers land subsidies of up to 85 per cent for eligible projects, while financial assistance is also available for factory construction, purchase of modern machinery, participation in overseas exhibitions and buyer-seller meets.
Manufacturers say these incentives have significantly lowered the cost of setting up new units and expanding existing facilities. The government is also providing subsidies of up to 30 per cent for installation of advanced machinery, enabling companies to improve productivity and product quality. Industry bodies believe the policy has created a more competitive environment, attracting both domestic and overseas investors to Uttar Pradesh. Businesses estimate that large investments under the scheme could deliver substantial financial returns over the coming years, further encouraging expansion across the sector. EXPORTS RESILIENT DESPITE GLOBAL CRISIS The industry's performance has remained strong even as exporters navigated external challenges such as geopolitical tensions, global economic uncertainty and changing trade policies. Data shared by industry representatives shows leather exports from the Kanpur region have risen from around Rs 5,000 crore in 2020-21 to nearly Rs 7,000 crore, reflecting growth of about 35-40 per cent over five years. Last financial year, the Kanpur region recorded overall exports of around Rs 10,200 crore, with leather products contributing nearly Rs 7,000 crore, accounting for almost 70 per cent of the region's export value.
Officials from export promotion bodies also said total leather exports from major manufacturing hubs, including Kanpur, Agra and Noida, have reached approximately Rs 15,000-16,000 crore. They noted that export growth could have been even higher had international disruptions such as the Russia-Ukraine conflict and tariff-related uncertainties not affected global demand. KEY FACTORS DRIVING GROWTH The government is also focusing on strengthening industrial infrastructure to sustain the sector's expansion. Plot allocation has begun for a proposed Leather Footwear Park in Kanpur, while the long-awaited Mega Leather Cluster is expected to provide common facilities, modern infrastructure and environmentally compliant production systems for manufacturers. Industry leaders believe these projects will enhance the global competitiveness of Uttar Pradesh's leather products. The sector already supports an estimated seven to eight lakh jobs, directly and indirectly, in the Kanpur region alone, and stakeholders expect employment to rise further as new industrial units become operational. Alongside infrastructure, skill development has emerged as another priority, with training programmes and industry-led initiatives preparing workers to operate modern manufacturing equipment.
The BriefWire