UP new leather policy targets India-UK FTA benefits eliminating 17% tariffs to boost Agra-Kanpur exports. State eyes $50B national leather export goal by 2030.
UP new leather policy : State Aims to Capture $50B Global Leather Market with Cluster-Based Growth Strategy.
UP new leather policy : UP’s Leather Industry Set for Global Push with UK Trade Deal
Lucknow, Uttar Pradesh – The Uttar Pradesh government is drafting the Footwear, Leather and Non-Leather Sector Development Policy 2025 to capitalize on the India-UK Free Trade Agreement (FTA), which will eliminate current 17% tariffs on leather goods exports. The policy aligns with India’s national target of $50 billion in leather exports by 2030.
Key Policy Highlights
✅ Cluster-Based Growth – Focus on Agra (footwear) & Kanpur-Unnao (tanneries)
✅ FTA Advantage – Duty-free access to UK’s £1.2B leather import market
✅ Skill Development – Upgrading artisan training for global quality standards
✅ Sustainability Push – Eco-friendly tanning to meet EU compliance
Why This Matters?
1. Tariff Elimination Game-Changer
| Current Scenario | Post-FTA (2025-26) |
|---|---|
| 8-17% UK import duties | Zero tariffs |
| $1.2B annual exports | Target: $5B+ by 2030 |
| SME-dominated | Attract global brands (Clarks, Dr. Martens) |
2. UP’s Leather Ecosystem Strengths
👞 Agra – Produces 20% of India’s footwear (15,000+ units)
🐂 Kanpur-Unnao – 200+ tanneries (65% of India’s leather exports)
🛠️ Ancillary Hub – Zippers, soles, dyes manufacturing
3. Global Competitive Edge
- 30% lower labor costs vs China/Vietnam
- GST & PLI benefits for export-oriented units
- Fast-track approvals under new policy
Government & Industry Statements
UP Industrial Minister:
“We’re creating ‘Leather Parks’ with plug-and-play infrastructure to attract UK/EU buyers under the FTA.”
Agra Footwear Manufacturers’ Association:
“Zero tariffs mean we can price competitively against Bangladesh and Vietnam.”
Roadmap to $50B Exports
📌 2024-25: Policy notification + FTA ratification
📌 2026: 50+ units certified for UK/EU sustainability norms
📌 2028: UP to contribute 40% of India’s leather exports
📌 2030: Achieve $20B state export target
Challenges to Address
⚠️ Environmental Compliance – Transition from chemical to vegetable tanning
⚠️ Skill Gap – Train 50,000+ workers on automated cutting/stitching
⚠️ Branding – Shift from B2B to direct consumer exports
Investor Opportunities
💼 Footwear OEMs: Set up in Greater Noida/Agra SEZs
💼 Tech Providers: AI design software, 3D prototyping
💼 Sustainability Firms: Water recycling solutions for tanneries
The Bigger Picture
🇮🇳 India’s Advantage:
- World’s 2nd largest footwear producer
- Raw material base (20% of global cattle population)
🇬🇧 UK Market Potential:
- £1.2B annual leather imports
- Demand for ethical sourcing (UP’s handicraft synergy)
Final Thoughts
With the FTA as a catalyst, UP’s leather policy could transform the state into the “Vietnam of India” for footwear exports. By addressing compliance and automation, Agra-Kanpur can stitch together a global success story.
