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Industrial Park
Context:
India is set to embark on an ambitious plan to transform its manufacturing landscape by establishing over 20 dedicated industrial parks by 2030.
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- This initiative aims to position India as the third-largest global manufacturing hub, improving its current fifth-place ranking.
- Ministries such as pharmaceuticals, textiles, petroleum and natural gas, and commerce are collaborating on the initiative, which seeks to replicate China’s success in leveraging industrial parks to streamline manufacturing and attract investment.
About the Plan
- The plan includes the development of five chemical and petrochemical hubs, seven textile parks, five leather and footwear parks, four medical devices parks, and three bulk drugs parks.
- These parks will provide designated spaces with enhanced infrastructure for companies in specific sectors, addressing criticisms of India’s unstructured approach to manufacturing growth.
- A mix of greenfield and brownfield projects will be employed, with new parks being created and existing ones upgraded.
- India’s manufacturing value-added output currently stands at $456 billion, contributing around 3% to global manufacturing exports, according to World Bank data.
- The government aims to raise this share to at least 4% by 2030. Without these parks, projections suggest India’s contribution would only grow to 3.25%.
Current Framework
Industrial parks are designated areas with facilities and infrastructure designed to promote industrial development. They often include manufacturing units, warehouses, and support services. As of early 2021, India had approximately 3,989 industrial parks spread across various states, with Maharashtra (728), Karnataka (539), and Gujarat (267) having the highest numbers.
Types of Industrial Parks
- Integrated Industrial Parks: These parks offer a mix of industrial, residential, and commercial spaces with developed plots and essential services like power and water.
- Special Economic Zones (SEZs): These are designated areas that provide tax incentives and other benefits to attract foreign investments and boost exports.
- National Investment & Manufacturing Zones (NIMZs): These zones focus on manufacturing and aim to create world-class infrastructure for industries.
Government Initiatives
- National Industrial Corridor Development Programme: The government has approved the establishment of 12 new industrial parks under this program, focusing on sustainable infrastructure and smart city concepts.
- Industrial Information System (IIS): A comprehensive database mapping over 3,350 industrial clusters across India, providing vital information about land availability, transport infrastructure, and incentives for investors.
- Industrial Park Rating System (IPRS): This system evaluates the competitiveness of industrial parks based on various parameters, helping identify best practices and areas for improvement.
Key Features
- Infrastructure Development: Industrial parks are equipped with essential services such as transportation, utilities, and business support services to facilitate efficient operations.
- Job Creation: The development of these parks is expected to create millions of direct and indirect jobs, contributing significantly to the economy.
- Focus on Sustainability: New industrial parks emphasise sustainable practices, integrating residential areas with workplaces to reduce carbon footprints and enhance quality of life.
