UP unveils ₹80cr footwear policy to create 22L jobs

Uttar Pradesh, footwear, leather, manufacturing, MSMEs, Kanpur, Agra, Unnao, jobs, employment, policy, subsidies, exports, clusters, factories, tanneries, infrastructure, design, incentives, investors, UPSIDA, development, ecosystem, production, India, local, economy, trade, industrial, global, market

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Uttar Pradesh is set to transform into a global footwear and leather manufacturing hub. On August 1, 2025, Chief Minister Yogi Adityanath unveiled the draft of the Uttar Pradesh Footwear, Leather and Non‑Leather Sector Development Policy 2025, targeting 22 lakh new jobs via cluster development and a fully integrated design-to-delivery ecosystem across Agra, Kanpur, and Unnao. 

Cluster‑Based Manufacturing: From Agra to Kanpur and Unnao

Drawing on the strengths of established hubs, Agra’s footwear units, Kanpur’s tanneries, and Unnao’s export capabilities, the policy emphasizes a cluster model. Each cluster will combine production, design, research, training, and ancillary suppliers like buckle, laces, soles, chemicals, and machinery manufacturers.

Infrastructure & Incentives: Plug-and‑Play Manufacturing Zones

UPSIDA (Uttar Pradesh State Industrial Development Authority) has launched Uttar Pradesh’s first footwear park in Kanpur (Ramaipur, ~83–131 acres) under a plug-and-play model. Investors get access to electricity, water, sewage, factory sheds, and a modern Common Facility Centre with labs, design studios, and packaging units. This reduces setup time and costs for MSMEs.

Policy incentives are generous:

  • Clusters on 25-100 acres get up to ₹45 crore subsidy; over 100 acres, up to ₹80 crore
  • Stamp duty waivers, capital support, lease rent models, and single-window approvals through a digital portal
  • Investors must commit ₹150-200 crore per park, yielding 1,000 – 3,000 jobs per ₹1 crore invested produces 20 employment opportunities.

A 22‑Lakh‑Job Boom Tied to Prized Industry Assets

The new policy could generate around 22 lakh jobs, a seismic boost to the state’s MSME ecosystem. Uttar Pradesh already hosts over 200 tanneries in Kanpur and Unnao and is widely recognized as India’s “Footwear Capital.”

Why This Matters: Export Growth & Local Empowerment

With India as the world’s second-largest consumer and producer of leather and footwear, Uttar Pradesh contributes nearly 46% of the country’s exports in this segment. The policy calls for modernization, exports beyond China, EU, US, West Asia, and support for domestic innovation in design and machinery.

Summary Table

Focus AreaDetails
Job Creation22 lakh new direct and indirect jobs planned
Cluster LocationsAgra, Kanpur, Unnao—integrated value chain hubs
Infrastructure ModelPlug-and-play industrial parks with CFCs and digital Nivesh Mitra portal
Policy IncentivesCapital subsidies, stamp duty exemptions, lease-rent model, fast approvals
Export AmbitionsAccelerated growth toward global markets using local raw materials and skills

This policy could be a turning point for Uttar Pradesh’s MSMEs, unlocking global footwear production, modern infrastructure, and mass employment.

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