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UP Footwear, Leather and Non-Leather Sector Development Policy, 2025: Key incentives, eligibility

UP Leather and Footwear Policy 2025: The policy took effect from its notification date and is to remain operative for five years, subject to any earlier amendment or cancellation

UP Footwear, Leather and Non-Leather Sector Development Policy, 2025: Key incentives, eligibility

POLICY AT A GLANCE

ItemPosition
Official titleUttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy, 2025
Common portal titleLeather & Footwear Policy, 2025
Administrative departmentDepartment of Micro, Small and Medium Enterprises and Export Promotion
Nodal agencyDirectorate of Industries
Effective dateDate of notification
ValidityFive years from notification, unless amended or cancelled earlier
Principal beneficiariesFootwear, leather and non-leather product manufacturers, machinery units, allied units, clusters, mega anchor units and private industrial park developers
Minimum investment for standalone unitsRs 50 crore
Main incentivesLand-cost grant, capital subsidy, stamp-duty exemption, employment and training support, power-tariff subsidy, research support and sustainability incentives
Application mechanismProposed online portal linked with Nivesh Mitra and the online incentive-management system
Current statusPolicy published; detailed implementation guidelines and project-level progress data were not identified in the official material reviewed

 What is the Uttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy?

The Uttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy, 2025, is intended to cover the complete value chain, including leather and non-leather footwear, accessories, machinery, components, design, research, exports and allied manufacturing. It took effect from its notification date and is to remain operative for five years, subject to any earlier amendment or cancellation.

Uttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy scope 

The  policy is a state incentive and industrial-development framework for attracting new investment and supporting expansion in footwear, leather and non-leather manufacturing, including: 
  • Leather footwear
  • Non-leather footwear made from polyurethane, ethylene vinyl acetate, rubber, synthetic materials and textiles
  • Sports and woven footwear
  • Footwear components and ancillary products
  • Handbags, wallets, gloves, upholstery, leather garments, saddlery and travel goods
  • Machinery used in footwear and leather production
  • Design studios, product-development centres and research facilities
  • Clusters and allied units forming part of the supply chain
A unit may qualify as a new project, expansion or diversification project. An existing enterprise must increase its gross block by at least 25 per cent through new capital investment for an expansion or diversification proposal to qualify. Diversification must involve an entirely different product rather than a variation of an existing product.

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Why was the policy introduced?

UP accounts for about 46 per cent of India’s leather exports and contains more than 200 operational tanneries, mainly in
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