Developing India's future: 12 industrial smart cities paving the way
In a significant move towards fostering investment-led economic growth in manufacturing, the Union Budget has announced the setting up of 12 industrial parks under the National Industrial Corridor Development Programme (NICDP). The strategic initiative, which aims to enhance ease of doing business, will be developed with investments exceeding ₹ 28,600 crore.
The 10 states affected by the 12 Smart Industry Cities under the NICDP are Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh. These industrial parks, spread across these states, provide an opportunity for some landlocked states to join the Indian manufacturing movement and help catalyse regionally distributed development.
The globally proven model of industrial corridors is expected to attract ₹ 1.5 trillion in investment from both domestic and global investors. The industrial parks will have ready-to-allot, developed land for investors, ensuring easy availability of land to industry through the e-land management system.
Colocation of large anchor industries and Micro, Small, and Medium Enterprises (MSMEs) within the industrial parks will provide necessary supply chain infrastructure for large units and market access for MSMEs. Investments in these industrial parks are estimated to create about 1 million direct jobs and up to 3 million indirect jobs.
The industrial parks will provide world-class industrial infrastructure, including reliable power, water, gas pipeline, effluent treatment plants, telecom/OFC network, and plug-and-play facilities. They will be aligned to the golden quadrilateral and the PM Gati Shakti National Master Plan, ensuring multi-modal connectivity infrastructure.
The industrial corridors will create viable and sustainable urban development models to cater to India's expected urbanization rate of over 50% by 2047. Manufacturing gross value added (GVA) can surge from $0.5 trillion in 2023-24 to $1.8 trillion in 2030-31, and further expand to $9.2 trillion by 2047-48.
India's share in global merchandise trade can increase from 1.8% in 2022 to 9.8% in 2047, translating into a growth from $0.45 trillion in 2022-23 to $3.7 trillion by 2047-48. Manufacturing competitiveness and ready connectivity, both physical and digital, will significantly enlarge export prospects for both large enterprises and MSMEs.
The recent announcement of industrial smart cities will help realize this exciting manufacturing potential. The Indian economy has the potential to reach $8 trillion by 2030-31 and $38 trillion by 2047-48. The industrial cities will implement concepts like walk-to-work, providing access to quality housing, healthcare, education, and entertainment, to attract and retain talent.
This article was written by Mr Sanjiv Puri, President of Confederation of Indian Industry (CII) and chairman of ITC Ltd., and was first published on 6 September 2024 in Business Standard. The article underscores the significant role these industrial cities will play in boosting manufacturing growth and propelling India towards becoming a global economic powerhouse.
