Uttar Pradesh, which accounts for 46 per cent of India's leather exports, is considering policy measures to help the industry navigate fresh challenges including tariff pressures and disruptions 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 declined from ₹4.82 billion in 2024-25 to ₹4.75 billion in 2025-26, primarily due to tepid global demand and the impact of higher US tariffs and the Gulf crisis. The state's leather goods industry, estimated at ₹20,000 crore, has sought active support from the state government amid these headwinds.
The leather industry has highlighted multiple challenges including raw material availability, skilled manpower, logistics, financial assistance, skill development, marketing and policy-related issues. As reported by Business Standard, the Uttar Pradesh State Transformation Commission (STC) recently held discussions with leather goods manufacturers and exporters to take stock of the situation. UP STC chief executive officer Manoj Kumar Singh stated that issues raised by the leather industry would be taken up with the departments concerned for appropriate action. Singh emphasized that sustained dialogue between the government and industry would help give impetus to Uttar Pradesh's industrial and export development, adding that such coordination would strengthen the state's leather industry ecosystem.
Uttar Pradesh contributes 30 per cent to the country's raw leather production and provides employment to more than 1 million people in the state. There are about 200 leather tanneries in the Kanpur-Unnao region, while Agra serves as a major hub for leather footwear manufacturing and exports. 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 regions.
Agra-based leather goods exporter Puran Dawar emphasized that while India's free trade agreements could improve market access and competitiveness in major consumer markets, tariff advantages alone would not guarantee orders. As reported by Business Standard, Dawar highlighted that quality, traceability, sustainability, social compliance and delivery performance would decide competitiveness. He added that the industry needs to develop capability in sports performance footwear such as 100m, 200m, 400m, half-marathon and marathon requirements to enhance competitiveness. Dawar warned that if the industry is not prepared, non-tariff barriers can replace tariff barriers, emphasizing the importance of comprehensive preparedness beyond just tariff advantages.
