The recent Cabinet approval of 12 new projects under India’s National Industrial Corridor Development Programme (NICDP) marks a pivotal moment in the nation’s journey toward establishing itself as a global manufacturing powerhouse. The programme aligns with the Confederation of Indian Industry’s (CII) call for public-private partnerships to develop greenfield industrial smart cities across India.

At the heart of the NICDP is the goal of developing large-scale industrial regions interconnected by state-of-the-art infrastructure, encompassing transportation, logistics, and communication networks. These corridors are strategically designed to optimise the location of industries, improve supply chain efficiency, and attract both domestic and international investments. By linking key production centres with major ports, airports, and urban areas, the initiative aims to create seamless industrial ecosystems that can support the entire manufacturing value chain—from raw material procurement to the delivery of finished goods.

The emphasis on clustering industries within specific zones will allow manufacturers to benefit from economies of scale, as shared resources like power, water, and waste management facilities can reduce operational costs and boost production efficiency.

Job creation

The development of these corridors is expected to generate a substantial number of jobs, particularly in sectors such as agribusiness, automotive, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles. Beyond direct employment in these sectors, the projects are likely to spur indirect employment in supporting industries and services, creating a broad ripple effect across the economy. Moreover, the integration of these corridors with the PM Gati Shakti platform will facilitate targeted training and upskilling of workers, thereby enhancing the employability of the local workforce. This focus on skilling is crucial for maintaining a competitive edge in manufacturing and ensuring that India can meet the evolving demands of global markets.

Also with the introduction of new technologies in the areas of alternate fuels, a whole new ecosystem is expected to develop. The inflow of capital will not only boost industrial output but also facilitate the transfer of advanced manufacturing technologies and practices. As global companies establish a presence within these corridors, they will bring cutting-edge technologies, management practices, and knowledge, contributing to the overall upgrading of India’s manufacturing capabilities.

Single window clearance

Additionally, the introduction of synchronized Central and State-level single-window clearance systems will streamline regulatory procedures and reduce bureaucratic delays, further improving the ease of doing business. These measures are expected to lower operational costs, making Indian products more competitive globally.

Aligned with global trends, the NICDP also emphasizes sustainable development. The corridors are expected to incorporate green technologies and practices, such as renewable energy, energy-efficient buildings, and sustainable waste management systems. By promoting eco-friendly manufacturing, the initiative will help reduce the environmental footprint of the industrial sector and align India’s growth trajectory with its climate commitments.

The writer is Chairman, CII Council on Manufacturing Excellence and CEO &MD, JCB India