Context:
Kanpur and Agra, home to over 75% of Uttar Pradesh’s leather units, are set to be developed as India’s “twin footwear hubs” under a major state initiative.
More on News:
- The UP government aims to leverage Agra and Kanpur’s strategic and competitive advantages in the footwear sector from raw materials and production to a skilled workforce.
- As a first step, the state government is extensively revising its leather industry policy to draw in investment from both domestic and global players.
- Highlighting recent investment trends in the leather sector, officials noted that Kanpur has drawn major investments in large-scale units and tanneries, with commitments reaching up to ₹7,450 crore.
- Agra has primarily attracted investments in small-scale footwear manufacturing units.
- The government plans to promote Kanpur and Agra as twin footwear cities by linking raw material supply with finished goods production.
- The upcoming policy will not only offer financial support to investors but also help with technology upgrades and provide export subsidies for both manufacturers and exporters.
- The government aims to boost Agra’s contribution to the national leather export target of ₹46,000 crore to around 40%, while setting a 20% share for Kanpur.
- The two cities are expected to attract up to ₹8,000 crore in investment over the next four years.
- Kanpur is well-known for raw materials, while Agra specializes in finished products, giving us a strong advantage in the global market.
- Products from both cities are already being exported to Europe, UK, USA, Australia, and other countries.
- Uttar Pradesh produces around 30% of India’s raw leather and accounts for about 46% of the country’s leather exports.
Infrastructure Development
- Recently, a senior officials visited Guangzhou, China, to explore opportunities to develop Kanpur and Agra as footwear hubs.
- The government has established a 132-acre footwear park in Kanpur with 75 industrial plots and plans a similar park for Agra in the next phase.
- The government is inviting EOIs from footwear and accessories companies to set up operations in Kanpur and Agra, offering world-class infrastructure, skilled labor, strong road connectivity, and supportive policies with incentives, subsidies, and rebates for investors.