Context: Recently, the Cabinet Committee on Economic Affairs has approved 12 new industrial smart city projects under the National Industrial Corridor Development Programme (NICDP), with a total investment of Rs. 28,602 crore.

Key highlights

• These projects span across 10 states, including Uttarakhand, Punjab, Maharashtra, Kerala, Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, and Rajasthan, and are aligned along six major corridors.

• The industrial cities will be developed as greenfield smart cities, incorporating ‘plug-n-play’ and ‘walk-to-work’ concepts to ensure advanced and efficient infrastructure.

• The NICDP aims to boost India’s manufacturing capabilities, contributing towards the $2 trillion export target by 2030, and enhance the country’s position in Global Value Chains.

• The projects are expected to create up to 1 million direct and 3 million indirect jobs, promoting regional economic growth and socio-economic development.

• Emphasis on sustainability includes ICT-enabled utilities and green technologies to minimise environmental impact, aligning with the vision of ‘Viksit Bharat’ or a developed India.

Need for Industrial Corridors

• The different sectors of an economy are inter-dependent on each other.

• Industrial corridors, recognizing this inter-dependence, offer effective integration between industry and infrastructure, leading to overall economic and social development.

• According to the World Economic Forum, about 35% of the projected growth in the world’s urban population until 2050 will come from India, China, and Nigeria, combined.

• A study titled ‘India’s Urban System: Sustainability and Imbalanced Growth of Cities’, points to the fact that million-plus cities in India increased in number from 5 (with a share of the total urban population of 18.81%) in 1951 to 23 (32.54% of the urban population) in 1991, and to 53 (42.62% of the urban population) in 2011, whereas the share of small and medium cities in total urban population registered a consistent decline over the years.

National Industrial Corridor Development Programme

• National Industrial Corridor Development Programme is India's most ambitious infrastructure programme aiming to develop new industrial cities as "Smart Cities" and converging next generation technologies across infrastructure sectors.

• Government of India is developing various industrial corridor projects as part of the National Industrial Corridor Programme which is aimed at development of futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world.

Advantages for Developing Industrial Corridors

• Enhanced Connectivity: Industrial corridors provide a well-planned and integrated transportation network, including highways, railways, ports, and airports, facilitating seamless movement of goods and people.

• Boost to Manufacturing and Economic Growth: Industrial corridors attract investment, promote industrialization, and boost economic growth by providing a conducive environment for industries and manufacturing clusters.

• Employment Generation: The development of industrial corridors creates numerous job opportunities, particularly in the manufacturing sector, contributing to employment generation and addressing regional disparities.

• Infrastructure Development: Industrial corridors lead to the development of world-class infrastructure, including industrial parks, logistic hubs, and smart cities, which further attract investments and improve the overall business environment. 

Challenges in Developing Industrial Corridors

• Land Acquisition and Rehabilitation: One of the major challenges is acquiring large tracts of land for corridor development, which can face resistance from local communities. Proper rehabilitation and compensation for displaced populations need to be addressed.

• Environmental Concerns: Industrial corridors can have adverse environmental impacts, including deforestation, air and water pollution, and habitat destruction. Ensuring sustainable development practices and mitigating environmental risks is crucial.

• Infrastructure Financing: Developing industrial corridors requires significant investment in infrastructure. Securing adequate financing from both public and private sources can be challenging, especially for long-term projects.

• Coordination and Stakeholder Management: Coordinating multiple agencies, including central and state governments, private investors, and local communities, is essential for successful corridor development. Effective stakeholder management and resolving conflicts of interest are crucial for smooth implementation. 

Conclusion

• Through strategic partnerships and comprehensive planning, the National Industrial Corridor Development Program is set to transform India into a competitive player in the global manufacturing landscape. With state-of-the-art infrastructure and planned urbanization, these industrial corridors will not only attract domestic and international investments but also generate employment opportunities and drive economic prosperity for the nation.