India’s 'Necklace of Industrial Cities': Piecing Together The Infrastructure Jigsaw Puzzle

With a staggering Rs 28,602 crore in investments, these industrial hubs are designed to revolutionise India’s economic landscape by creating advanced manufacturing ecosystems across 10 states.

Spread along six industrial corridors, these smart cities will feature cutting-edge technologies, sustainable designs, and a ‘plug-and-play’ model, making them attractive to both large industries and MSMEs alike.

These new industrial cities which will be linked to ports, are projected to be completed within three years, contributing significantly to India's US $2 trillion export target by 2030.

The Industrial Nodes and Their Strategic Importance

The newly approved industrial nodes will be developed in key locations across India: Khurpia in Uttarakhand, Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in Uttar Pradesh, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in Andhra Pradesh, and Jodhpur-Pali in Rajasthan.

However, one location remains undisclosed due to the Model Code of Conduct in election-bound states like Haryana, Maharashtra, Jharkhand, Delhi, and Jammu & Kashmir.

Commerce and Industry Minister Piyush Goyal referred to this plan as a “necklace of industrial cities,” all connected by India’s Golden Quadrilateral national highway network.

Some of these hubs are poised to attract international collaboration, with countries like Switzerland and Singapore showing interest in partnering the available projects, helping embed India into global supply chains.

Each node will serve as an industrial powerhouse, focusing on sectors such as technical textiles, electric vehicles, aerospace logistics, food processing, and tourism.

The government is not just looking at creating industrial output but crafting ecosystems that allow industries to thrive with multi-modal connectivity under the PM GatiShakti National Master Plan, ensuring a smooth movement of goods, services, and people.

An Economic Boost for India

These industrial projects are expected to generate up to 4 million jobs — 1 million direct and 3 million indirect.

This represents a critical step toward realising the vision of a ‘Viksit Bharat’—a developed, self-reliant India that is integrated into global value chains (GVCs).

By providing ready-to-allot land and sustainable infrastructure, the NICDP aims to cement India’s role as a global industrial hub, boosting regional development and enhancing the nation’s overall competitiveness.

Rajat Saini, CEO of the National Industrial Corridor Development Corporation (NICDC), emphasised the strong investor confidence in these projects.

For example, Hyundai has already committed to establishing an automobile hub on 450 acres in Zaheerabad, Telangana, even before the Cabinet’s approval, underscoring the potential for these hubs to attract major international investments.

The Historical Context & Challenges Of Industrial Corridors

This is not India’s first foray into large-scale industrial corridors. Over the past two decades, the Indian government has heavily invested in infrastructure-led development, encompassing rail, road, and metro projects as well as SEZs, National Investment Manufacturing Zones (NIMZ), and industrial parks.

The Delhi Mumbai Industrial Corridor (DMIC), launched in 2009 and modeled after Japan’s Tokyo-Fukuoka Corridor, was the first of its kind, covering 1,500 kilometers and aimed at generating 25 million jobs.

However, many of the DMIC’s projects remain incomplete, hindered by land acquisition issues, environmental challenges, and governance gaps.

Similar challenges are anticipated for the new projects under NICDP, particularly in ensuring seamless coordination between economic, urban, and environmental stakeholders.

Prathmesh Gandhi, an urban management professional from Ahmedabad, pointed out that the corridors have the potential to reshape both urban and regional development.

“For this to succeed, there must be provisions for worker housing and accessible transportation to ensure affordability, accessibility, and long-term viability. Without these, these regions risk becoming ghost towns,” Gandhi said.

His concern highlights one of the most critical aspects of this mega-infrastructure initiative: the integration of industrial nodes into the existing urban fabric.

Ensuring robust transport links and affordable housing near these hubs will help mitigate the risk of these cities becoming isolated industrial pockets.

Navigating Governance & Environmental Challenges

The road to realising this grand vision is not without obstacles. According to John Verghese from the Kochi Development Authority, the foremost challenges lie in land acquisition and implementing business reforms.

“Every region wants economic development, but in its own way,” Verghese said. “The central government will need to navigate these differences. Land and business reforms are especially crucial, particularly in more backward or socialist-leaning states.”

India’s success with industrial corridors has been mixed due to these complexities. For instance, while DMIC was projected to become a significant industrial driver, it has struggled with delays in project materialisation.

Lessons from these earlier efforts are vital for the success of the current NICDP nodes. There’s also the critical issue of integrating renewable energy and sustainable practices into these new industrial hubs.

Charanjeet Singh, Assistant Professor at Mahatma Gandhi University, stressed that while job creation and economic development are important, “we cannot continue to build energy-intensive systems.”

Singh advocates prioritising green infrastructure and renewable energy solutions to ensure long-term sustainability.

India’s industrial corridors also present a unique opportunity to correct the country’s uneven urban and regional development. Currently, large cities dominate economic activity, while small towns and rural areas often lag behind.

To balance this skewed pattern, the NICDP envisions a more decentralised industrial landscape, connecting both large and small towns to the industrial hubs. However, Prathmesh Gandhi’s call for better planning around housing and transport is crucial for this vision to succeed.

Addressing State Disparities & Regional Development

An equally important challenge is the disparity between states in terms of worker skills, water availability, electricity, and access to major cities.

Anil Kumar Roy, an expert in regional development at the Center for Environmental Planning and Technology, pointed out that for these industrial corridors to work seamlessly, “states will need to collaborate with the central government to narrow the gap in infrastructure and service quality.”

Roy also noted that geography plays a significant role in determining the success of each node. “The better states improve their base infrastructure, the more their real estate will appreciate, enhancing their investment prospects.”

This means states that lag in these areas could face challenges in attracting investments and reaping the full benefits of the NICDP.

The Way Forward

India's industrial corridor initiative is undeniably ambitious, with the potential to transform its economic landscape and make it a global industrial powerhouse.

However, as the country moves forward with the NICDP, it must address key challenges around governance, sustainability, and regional disparities.

The success of these new industrial cities will depend not only on robust infrastructure but also on seamless coordination between states, industry stakeholders, and environmental planners.

As India races toward its US $2 trillion export target by 2030, the NICDP is a critical piece of the puzzle. If executed well, this "necklace of industrial cities" could be the engine that powers India into a new era of global industrial leadership.