Uttar Pradesh’s New Leather and Footwear Policy

In response to evolving global trade dynamics, the Uttar Pradesh government is developing a new leather and footwear policy. This initiative seeks to enhance exports and support local manufacturers. The policy aims to double the size of the state’s leather industry over the next five years. It focuses on providing financial assistance, technological upgrades, and export incentives to manufacturers and exporters.

Objectives of the New Policy

• The primary goal is to boost the leather and footwear industry in Uttar Pradesh.
• The government aims to create integrated leather clusters and parks in key cities like Kanpur, Agra, Unnao, and Noida.
• This strategy will enhance production capabilities and improve supply chain efficiency.
• The policy aligns with the Union Budget 2025-26 initiatives to support local manufacturers.

Target Markets for Exports

The policy identifies lucrative export destinations. These include Africa, Latin America, West Asia, the United States, and Europe. The state will leverage its existing manufacturing capabilities to tap into these markets. By focusing on both domestic and international demand, the policy aims to increase competitiveness.

Financial and Technological Support

Financial support will be a mainstay of the new policy. The state will offer export subsidies to encourage manufacturers. Additionally, the government plans to facilitate technological upgrades. This includes support for design capacity and machinery for non-leather footwear. Such initiatives will enhance product quality and innovation.

Current Industry Landscape

The leather industry in Uttar Pradesh is currently valued at approximately Rs 20,000 crore. This figure encompasses both local production and exports. The state’s current export figures stand at about $5 billion. The policy aims to elevate this figure , targeting $50 billion in exports by 2030.

Modelled After Tamil Nadu

The new policy will draw inspiration from Tamil Nadu’s successful leather industry framework. This model has proven effective in promoting growth and innovation. By adopting similar strategies, Uttar Pradesh aims to replicate this success.

Implementation Strategy

The policy will be drafted by the state micro, small and medium enterprises (MSME) department. A collaborative approach will be taken to ensure stakeholder involvement. Regular assessments will be conducted to monitor progress and make necessary adjustments.

Potential Impact on Employment

The policy is expected to create numerous job opportunities. By expanding the leather and footwear sector, the state can provide employment to a large workforce. This will contribute to the overall economic development of Uttar Pradesh.

Environmental Considerations

Sustainability will also be a focus of the new policy. The government aims to promote environmentally friendly practices within the industry. This includes waste management and responsible sourcing of materials.

Questions for UPSC:

1. Critically analyse the impact of government policies on the growth of the leather industry in India.
2. What are the challenges faced by the leather and footwear sector in Uttar Pradesh? Explain with suitable examples.
3. What is the significance of export subsidies in enhancing the competitiveness of local industries?
4. Comment on the role of technological advancements in transforming traditional manufacturing sectors like leather and footwear.

Answer Hints:

1. Critically analyse the impact of government policies on the growth of the leather industry in India.

1. Government policies have facilitated financial support and subsidies, boosting production capabilities.
2. Export incentives have opened new markets, increasing the global competitiveness of Indian leather products.
3. Policies promoting technological upgrades have enhanced product quality and innovation.
4. Integrated clusters and parks have improved supply chain efficiencies and reduced operational costs.
5. However, inconsistent policy implementation and regulatory hurdles can hinder growth.

2. What are the challenges faced by the leather and footwear sector in Uttar Pradesh? Explain with suitable examples.

1. Environmental regulations and sustainability concerns pose challenges in waste management and pollution control.
2. Inadequate infrastructure, particularly in transportation and logistics, affects supply chain efficiency.
3. Skilled labor shortages limit production quality and capacity in the sector.
4. Global competition from countries with established leather industries can affect market share.
5. Access to financing and credit remains a barrier for small and medium enterprises in the industry.

3. What is the significance of export subsidies in enhancing the competitiveness of local industries?

1. Export subsidies lower the effective price of goods in international markets, making them more attractive to buyers.
2. They encourage local industries to increase production and scale, thus improving economies of scale.
3. Subsidies can help offset the costs of compliance with international quality standards.
4. They support innovation and technological advancements by providing financial resources for R&D.
5. Ultimately, export subsidies can lead to job creation and economic growth by expanding market reach.

4. Comment on the role of technological advancements in transforming traditional manufacturing sectors like leather and footwear.

1. Technological advancements streamline production processes, reducing time and costs .
2. They enhance product quality through precision manufacturing and better material handling.
3. Automation and digital tools facilitate better inventory management and supply chain coordination.
4. Technologies like 3D printing and AI enable customization and innovation in product design.
5. Overall, technology encourages sustainability by minimizing waste and improving resource utilization.