Smart industrial cities

The world is stepping into a new phase of industrialisation. Popularly known as Industry 5.0, this phase will see humans and machines working together, improving the efficiency of industrial production manifold.

It is therefore commendable that the Centre plans to set up 12 Smart Industrial Cities under the National Industrial Corridor Development Programme.

India’s manufacturing sector, which currently contributes 17 per cent to GDP, is targeted to grow to 25 per cent, driven by the ‘Make in India’ initiative. The government also has a goal of increasing exports from 10-11 key sectors, including automobiles, space, medical devices and textiles, to $1 trillion by 2030. The proposed smart industrial cities will play a crucial role in transforming our ambitious vision into reality.

These smart industrial cities are not just about industrial expansion — they are a blueprint for India’s future. The strategic location of these proposed cities in regions beyond the traditional metro hubs will ensure that the roots of economic development will spread evenly across the nation. This shift is critical, as it moves away from the concentrated development of the past that was limited to certain urban regions and opens up opportunities in Tier 2 and Tier 3 cities. Regions like Gaya in Bihar and Zaheerabad in Telangana are poised to become the new centres of economic activity, fostering balanced growth and reducing regional disparities.

Enhanced job creation

One of the most significant impacts will be on India’s demographic dividend. With over 25 lakh youth graduating every year, there is a need to ensure employment, which will direct their knowledge for the nation’s growth. At the same time, the existing workforce needs to be reskilled and upskilled to prepare them for the transition to Industry 5.0.

The smart industrial cities will not only create millions of direct and indirect jobs but will also play a crucial role in upskilling and reskilling the workforce. These cities are designed to be hubs of innovation and learning, where our talent can be trained to adapt to new technologies.

The focus on infrastructure in these cities extends beyond just industrial setups. By integrating “plug-and-play” infrastructure, they will drastically reduce the time and effort required to establish a new manufacturing unit. This innovative approach will make India an attractive destination for both domestic and international investors. With operations set up swiftly, businesses can drive productivity and economic output at an accelerated pace.

With climate change on the world’s agenda, the smart industrial cities will be designed with sustainability at its core. The inclusion of effluent treatment plants, recycled water systems, and green energy sources underscores a commitment to reducing environmental impact.

The modern approach to urban planning in these cities will also include the “walk-to-work” concept. By integrating residential areas with industrial zones, these cities will create environments where work-life balance is a reality, not just a concept. This, in turn, will lead to higher productivity and a more satisfied workforce.

The rapidly growing space sector is an opportunity to contribute to the development of these smart industrial cities. The space sector can participate by setting up advanced manufacturing capabilities in some of these cities, particularly in the areas of aerospace engineering, satellite production, and related high-tech industries. Additionally, the use of space-based services in planning and management can enhance the efficiency and sustainability of these industrial hubs.

These will send a powerful signal to global investors that India is ready for modern industrialisation. The strategic placement of these cities along major highways, ports and airports to ease connectivity with integrated Dedicated Freight Corridors will frame them as hubs of global trade and commerce.

The writer is Chairman, IN-SPACe