Investment Opportunities in India’s Industrial Corridors
Introduction – India’s Industrial Corridors
The Indian Government has been at the forefront of infrastructure development for the past eight years. The huge investment that the Indian Government has been putting into infrastructure projects is now getting international attention. In March this year, the London-based Economist magazine praised India’s infrastructure push in a detailed report. The Economist states,
“India is getting an eye-watering big transport upgrade. Overhauling the country’s roads and railways will make it richer and much better connected”
This massive investment in infrastructure is being built through a very unique and interesting concept – Industrial Corridors. The National Industrial Corridor Development Programme (NICDP) is India’s most ambitious infrastructure programme and it aims to transform India’s ageing infrastructure into modern integrated industrial complexes which will serve to integrate development across sectors and give a boost to the entire gamut of manufacturing activities with the best logistics and supply chain support services.
The Government of India hopes that the development of the industrial corridors will metamorphose and modernise India’s long-neglected infrastructure, simultaneously boosting manufacturing and services activities, generating employment, increasing efficiency, and making transportation across the country very smooth and lifting economic growth to levels that can help India achieve the five trillion-dollar GDP goal.
The NICDP recognises the fact that India’s economy is vast and varied. And these sectors need help in integrating their activities as they are interdependent. This integration will help in exchanging knowledge and information, sharing facilities, eliminating inefficiencies, and saving hugely on costs. Some of the benefits, as listed on the Make in India website are:
- High-speed transportation network – rail and road
- Ports with state-of-the-art cargo handling equipment
- Modern airports
- Special economic regions/industrial areas
- Logistics parks/transhipment hubs
- Knowledge parks focused on catering to industrial needs
- Complementary infrastructure such as townships/real estate
- Other urban infrastructure along with enabling policy framework
The above list is a clear indication of the advantages and what can be achieved through developing industrial corridors, integrating activities and having a grand masterplan for the entire country through focused development.
India’s Industrial Corridors
Under the Indian Government’s master plan for industrial corridors, the ambition is to develop 32 large projects under 11 corridors as part of the National Infrastructure Pipeline. The 11 industrial corridors are:
- Delhi-Mumbai Industrial Corridor (DMIC)
- Amritsar-Kolkata Industrial Corridor (AKIC)
- Chennai-Bengaluru Industrial Corridor (CBIC)
- Vizag-Chennai Industrial Corridor (VCIC)
- Bengaluru-Mumbai Industrial Corridor (BMIC)
- Odisha Economic Corridor (OEC)
- Hyderabad Nagpur Industrial Corridor (HNIC)
- Hyderabad Warangal Industrial Corridor (HWIC)
- Hyderabad Bengaluru Industrial Corridor (HBIC)
- Extension of CBIC to Kochi via Coimbatore
- Delhi Nagpur Industrial Corridor (DNIC)
Very clearly, these 11 industrial corridors are spread across India to ensure holistic and equitable development throughout the country. These 11 industrial corridor projects will be implemented through the National Industrial Corridor Development and Implementation Trust (NICDIT). The objective is to implement the development programme with a strategic focus and make it inclusive and holistic.
The industrial corridor programme, besides giving a tremendous push to industrialization, also envisages the simultaneous modernisation of existing urban areas and the creation of new smart cities that will play a major role in transforming India into one of the world’s greatest economic powers.
These corridors are spread across India, with a strategic focus on inclusive development to provide a boost to industrialization and planned urbanization. Smart cities are being developed along these corridors. These cities, with state-of-the-art infrastructure, will house the new workforce that is required to power manufacturing, in turn leading to planned urbanization.
Below is a map of the industrial corridors that are being developed in India.
Source: National Industrial Corridor Development Corporation
Opportunities – India’s Industrial Corridors
The scope and breadth of the industrial development programme is vast. And the benefits are endless. As envisaged by the Government of India, this is a holistic project which will be the flag bearer of economic growth and development for the entire country. The opportunities for Indian and foreign companies are tremendous. Some of the opportunities for investors, manufacturers and services providers are:
- Huge infrastructure development that will require a very wide range of products and services
- Opportunities for logistics and supply chain management companies
- Modernization and construction of rail, road, air and sea transport
- Industrial parks – design and development
- Waste management and environmental technologies
- Digital transformation of economic activities
- Establishing smart cities
- E-mobility
- Machinery and equipment for manufacturing
- Wide range of modern and traditional services
- Research & Development centres
- Innovation and & Start-ups
- Renewable and sustainable energy
- Healthcare and medical technology
Conclusion – India’s Industrial Corridors
The list is endless. India’s infrastructure push through the integrated development of industrial corridors is going to help the country build one of the most modern economies. And everybody has a chance to share a piece of the economic pie that India is offering. The pace of development and the opportunities that are being created are obvious and manifold.
Get in touch with us at SAS Partners to discuss these opportunities with foreign and Indian investors and provide you with an excellent bouquet of services that will help you make your fortunes in India and involve you in India’s growth story.
About the Author
 |
VIJAY KUMAR VADDADI, India Entry & International Affairs
Mr. Vijay Kumar is an Industrial Economist with 35+ years of experience in Economic Analysis, Trade & Investment Promotion, International Business Strategy & Cross-Cultural Impact. A Post-Graduate in Economics with specialization in Industrial Economics and Economics of Transportation, Public Utilities & Social Infrastructure from the University of Bombay (1982). In 1984, he joined the Consulate General of the Netherlands in Mumbai as an Economic & Commercial Officer and continued his association with the Netherlands Government (NBSO) for over 30 years. At SAS Partners, he heads the Trade and Investment Promotion activities, supports organising programmes for international business delegations, curates knowledge reports, and market studies and also helps our international clients in understanding the Indian business landscape better. More articles authored by him can be accessed here. |
