Govt decision to set up 12 industrial cities to boost domestic manufacturing: Experts

The Union Cabinet's decision to set up 12 new industrial cities in ten states with an estimated investment of Rs 28,602 crore will help boost domestic manufacturing and job creation, experts say. Kushal Kumar Singh, Partner, Deloitte India, said the announcement indicates the determination of the government to give big thrust to the manufacturing ecosystem in the country and represents a progressive approach towards attracting investments.

He said that the industrial cities that "offer world-class infrastructure facilities will be key to positioning India as a global manufacturing powerhouse and are expected to boost the manufacturing sector's contribution to India's GDP and generate employment opportunities".

The development of these hubs is part of a broader strategy to enhance domestic production capabilities and enhance the share of manufacturing in India's GDP which is very critical for achieving the USD 5 trillion economy target, Singh said.


"By creating these state-of-the-art industrial zones, the government aims to attract more investments and foster economic growth across different regions," he added.

Echoing similar views, Arun Kumar, Partner, INDUSLAW, said that the new areas have been proposed in Bihar, Andhra Pradesh and Punjab, among others to further expand the benefits of industrialisation and multimodal connectivity to these states.

"It aims to strike a balance between sustainability, planned urbanisation and industrial development while enabling lower logistical costs and costs of doing business," he said.

Kumar added that through this innovative model of infrastructure development, National Industrial Corridor Programme (NICP) understands the inter-dependence of various sectors and aims to attract investment by providing a mix of business as well as residential investment opportunities.