The Indian government is set to establish 12 new industrial cities across various states, similar to those developed in Greater Noida, Uttar Pradesh, and Dholera, Gujarat, as part of its strategy to enhance domestic manufacturing capabilities. According to Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), this initiative aims to support the growth of the manufacturing sector and create jobs.

Out of the 12 planned cities, two will be located in Andhra Pradesh and one in Bihar. Singh noted that eight cities are already in various stages of implementation, indicating a significant commitment to expanding industrial infrastructure in the country.

Currently, trunk infrastructure has been developed in four cities: Dholera in Gujarat, Auric in Maharashtra, Vikram Udyogpuri in Madhya Pradesh, and Krishnapatnam in Andhra Pradesh. These cities are ready for industrial land allocation, with the government actively engaging industries to attract investment. In the remaining four cities, special purpose vehicles (SPVs) are focused on constructing essential infrastructure, including road connectivity, water supply, and power supply.

With the addition of these 12 new cities, the total number of industrial smart cities in India will rise to 20. Singh emphasized the structured approach to development, stating, “We built the trunk infrastructure and then gave the plots. We take environmental clearance for the entire city, so the company gets the 'plug and play' kind of facilities.” This strategy aims to simplify the process for companies looking to establish operations in these new industrial hubs.

The government's plan also includes seeking approval from the Union Cabinet for the establishment of these new cities, with the necessary land already secured by state governments. Singh remarked that this initiative will increase the manufacturing sector's contribution to the country's GDP and generate significant employment opportunities.

Ashoo Gupta, a partner at Shardul Amarchand Mangaldas & Co, highlighted the potential impact of these industrial cities, stating that this innovative reform could significantly boost industrial growth and city planning through collaboration with state governments and the private sector. Gupta noted that the projects are designed to become dynamic economic centers, driving development and innovation while creating a lasting positive impact on local economies.

He further explained that the government's role typically involves constructing essential infrastructure and providing land to industries. By offering high-quality, reliable, eco-friendly, and robust infrastructure, the government aims to attract substantial investments in these industrial cities.

In addition to these initiatives, the Budget 2024-25 includes measures such as customs duty rationalization, which aims to promote manufacturing and enhance exports. This comprehensive approach reflects the government's commitment to building a robust industrial ecosystem that can support sustained economic growth.

The establishment of these new industrial cities aligns with India’s broader vision of becoming a manufacturing hub and a global economic player. By focusing on smart city development and sustainable infrastructure, the government aims to create environments conducive to business growth, technological advancement, and employment generation.

As the project progresses, these cities are expected to play a crucial role in reshaping India's industrial landscape, making it more competitive and resilient in the face of global challenges. The government’s efforts to foster a collaborative environment with the private sector will be instrumental in realizing these ambitious goals, positioning India as a key player in the global manufacturing arena.