7 Reasons Why India's Industrial Smart Cities Will Revolutionize Manufacturing

India’s industrial landscape is set for a revolution with the introduction of 12 new industrial smart cities. These smart cities are designed to provide a seamless, plug-and-play environment for businesses, reducing risks and simplifying logistics. By integrating innovation, collaboration, and essential infrastructure, they aim to transform the MSME sector, boost employment, and position India as a global manufacturing powerhouse. Ghar.tv finds out more:

1. Proven Industrial Cluster Model

Industrial clusters are a globally successful strategy for efficient industrialization. At the core of these clusters is an anchor industry that enables thousands of MSMEs (Micro, Small & Medium Enterprises) to grow and contribute to the sector’s expansion. This approach leverages economies of scale and agglomeration, reducing operational costs by sharing common infrastructure like power without needing independent captive units.

2. Collaboration Fuels Innovation

The beauty of industrial clusters lies in the synergies between companies. Businesses within these clusters can collaborate, boosting innovation, research and development, and overall product quality. By establishing supply chains within the geographical region, companies reduce logistics costs and improve efficiency.

3. Learning from SEZs and Greenfield Clusters

While previous attempts to create industrial hubs through Special Economic Zones (SEZs) and greenfield clusters, such as Dholera in Gujarat, faced challenges like land acquisition issues and slow investments, the new initiative for 12 industrial smart cities represents a more comprehensive, modern approach. These smart cities address the need for better infrastructure, human resources, and long-term planning, overcoming past setbacks.

4. People-Centric Industrialization

The new industrial smart cities recognize that successful manufacturing is not just about having factories. Entrepreneurs, managers, and workers all require a supportive environment to thrive. This includes access to quality housing, schools, hospitals, shopping malls, airports, and transportation hubs. A complete ecosystem is critical for attracting and retaining talent, ensuring that these cities become vibrant living and working spaces.

5. Strategic Location for Seamless Growth

One of the key advantages of these new clusters is their proximity to mid-sized cities. These cities offer social infrastructure, such as education and healthcare facilities, that are not only easily accessible but also capable of supporting further growth. The plug-and-play model means businesses can set up quickly, while the surrounding urban environment provides comfort and convenience for employees.

6. Minimizing Entrepreneurial Risks

In India, entrepreneurship often involves navigating risks that go beyond standard business challenges. Entrepreneurs face hurdles such as disrupted supply chains, land acquisition problems, lengthy clearances, and inconsistent power supply. The new industrial smart cities are designed to minimize these risks. By situating clusters along key freight corridors and expressways, logistics will become more predictable and efficient. Additionally, easy access to land parcels and dedicated renewable energy (RE) power infrastructure will ensure stable and affordable power supply.

7. Simplified Compliance and Quick Setup

The success of these industrial clusters also depends on reducing red tape. Ideally, pre-embedded clearances should be integrated into the land acquisition process. Alternatively, a self-certification model could be introduced, where businesses select from a compliance checklist, with periodic audits ensuring regulations are followed. Streamlined processes will significantly reduce the time required to start a business, giving India a competitive edge in the global market.

Transforming India’s MSME Sector and Employment Landscape

India has a wealth of anchor firms, both domestic and international, ready to populate these industrial smart cities. However, the real transformation will occur in the MSME sector, which will thrive within these clusters. This will lead to the creation of numerous well-paid, organized jobs, driving growth in the economy and providing much-needed employment opportunities for millions.