India's Bold Move - 12 New Industrial Smart Cities to Transform Manufacturing and Job Creation

In a significant move to bolster India’s industrial landscape, the Union Cabinet, led by Prime Minister Narendra Modi, has approved the development of 12 new industrial smart cities across 10 states. With a staggering investment of ₹28,602 crore, this ambitious project is set to create 40 lakh job opportunities and accelerate the country’s manufacturing capabilities. The decision, part of the National Industrial Corridor Development Programme, is poised to position India as a global manufacturing hub by 2027.

A Strategic Investment in India's Future

The new industrial smart cities will be strategically located along six major industrial corridors, ensuring seamless integration with the country’s existing industrial framework. This initiative is expected to generate 10 lakh direct jobs and an additional 30 lakh indirect jobs, further driving economic growth. The project reflects the government’s commitment to creating a robust industrial infrastructure that supports the nation’s burgeoning manufacturing sector.

Targeted Completion by 2027: Infrastructure and Environmental Readiness

The Cabinet has set an ambitious target to complete the development of these smart cities by 2027. These cities will be built on the innovative concepts of “plug and play” and “walk to work,” offering state-of-the-art infrastructure, including reliable electricity and water supply. Moreover, the government has already secured environmental clearances, ensuring that industrial units can commence operations without delays.

Key Locations and Their Strategic Importance

The new smart cities will be spread across key states, each playing a crucial role in India’s industrial landscape. Notable locations include Agra and Prayagraj in Uttar Pradesh, Gaya in Bihar, Dighi in Maharashtra, Khurpiya in Uttarakhand, Rajpura-Patiala in Punjab, Palakkad in Kerala, Zaheerabad in Telangana, Urvakal and Kupparthi in Andhra Pradesh, and Jodhpur-Pali in Rajasthan. Additionally, one project will be in Haryana. These cities will be positioned along major corridors like the Amritsar-Kolkata, Delhi-Mumbai, Vizag-Chennai, Hyderabad-Bengaluru, and Hyderabad-Nagpur corridors, linking them to critical industrial and export zones.

Boosting Exports and Domestic Manufacturing

Commerce Minister Piyush Goyal emphasized the strategic placement of some smart cities near ports, such as Dighi, which will enhance manufacturing for export. Meanwhile, cities like Agra, Prayagraj, and Khurpiya will cater to domestic manufacturing needs. The government expects the actual investment by industrial units to surpass the conservative estimate of ₹1.5 lakh crore, potentially increasing the number of job opportunities beyond the initial projection of 40 lakh.

Collaborative Effort Between State and Central Governments

This monumental project will see a joint investment by both state and central governments. States will provide half of the land required for each city, while the Centre will contribute financially, including offering loans with favorable terms to ensure smooth execution. The collaboration aims to create a balanced development model, benefiting regions across the country.

Other Key Decisions by the Cabinet

In addition to approving the industrial smart cities, the Cabinet also sanctioned several other significant projects. These include three railway projects worth ₹6,456 crore, which will expand the railway network by 300 kilometers across five districts in Odisha, Jharkhand, West Bengal, and Chhattisgarh. The Cabinet also extended the scope of the Agriculture Infrastructure Fund Scheme to ₹1 lakh crore, aiming to strengthen farming-related infrastructure. Furthermore, equity support of ₹4,136 crore was approved for hydropower projects in North-East India, which will contribute to the region’s energy capacity over the next eight years. The Cabinet also decided to conduct e-auctions for 730 private FM radio channels in 234 new cities, setting an estimated reserve price of ₹784.87 crore.

Conclusion: A Comprehensive Approach to National Development

The Union Cabinet’s decision to develop 12 new industrial smart cities represents a bold and visionary step towards transforming India’s manufacturing landscape. By strategically positioning these cities along major industrial corridors and focusing on both export and domestic production, the government is laying the groundwork for a robust and sustainable industrial ecosystem.

The additional cabinet approvals reflect a broader strategy to enhance the country’s infrastructure, agricultural, and energy sectors, ensuring a balanced and inclusive approach to national development.