Uttar Pradesh, which accounts for 46 per cent of India’s leather exports, is considering policy measures to help the industry tide over fresh challenges, including tariff pressures and disruptions arising from the West Asia conflict.
Global headwinds from tariffs and the prolonged war in West Asia have dented the growth trajectory of the domestic leather industry.
India’s leather and footwear exports slipped from $4.82 billion in 2024-25 to $4.75 billion in 2025-26 amid tepid global demand and the double whammy of higher US tariffs and the Gulf crisis.
Against this backdrop, Uttar Pradesh’s leather goods industry, estimated at Rs 20,000 crore, has sought active support from the state government.
The industry has highlighted challenges related to raw material availability, skilled manpower, logistics, financial assistance, skill development, marketing and policy-related issues.
At present, Uttar Pradesh contributes 30 per cent to the country’s raw leather production, while the sector provides employment to more than 1 million people in the state.
To take stock of the situation, the Uttar Pradesh State Transformation Commission (STC) recently held discussions with leather goods manufacturers and exporters.
UP STC chief executive officer Manoj Kumar Singh said the issues raised by the leather industry would be taken up with the departments concerned for appropriate action.
The Yogi Adityanath government is looking to catalyse leather exports, promote competitiveness and increase the sector’s contribution to employment.
“Sustained dialogue between the government and industry would help give impetus to Uttar Pradesh’s industrial and export development,” Singh said.
He added that such coordination would strengthen the state’s leather industry ecosystem.
There are about 200 leather tanneries in the Kanpur-Unnao region, while Agra is a major hub for leather footwear manufacturing and exports.
Agra-based leather goods exporter Puran Dawar said India’s free trade agreements (FTAs) could improve market access and competitiveness in major consumer markets, but tariff advantages alone would not guarantee orders.
“Quality, traceability, sustainability, social compliance and delivery performance will decide competitiveness. If we are not prepared, non-tariff barriers can replace tariff barriers,” he said.
“We have to develop capability in sports performance footwear such as 100m, 200m, 400m, half-marathon and marathon requirements,” Dawar added.
The Uttar Pradesh Leather and Footwear Policy 2025 recognises Agra as the “Footwear Capital of India”, while Kanpur leads in leather accessories, safety footwear and saddlery.
The policy offers up to 80 per cent land subsidy for mega anchor units and clusters in Purvanchal, Madhyanchal and Bundelkhand.
