The BGA India Team, led by Managing Director Ratan Shrivastava, wrote an update to clients on India’s 12 new greenfield industrial smart cities.

Context

  • Prime Minister Narendra Modi’s Cabinet Committee on Economic Affairs approved a landmark megaproject August 28 to create 12 new greenfield industrial smart cities. The $3.4 billion allocation provides a significant boost to the government’s ambitious modern manufacturing policy objectives. These industrial cities, created in addition to the 11 existing corridors under the National Industrial Corridor Development Program, are estimated to attract $18.1 billion in investments and create 4 million direct and indirect jobs.
  • Planned strategically along India’s six major industrial corridors and passing through 10 states, the cities will be positioned geographically as a “necklace of industrial clusters” across India and will be built to focus on ahead-of-demand, plug-and-play and walk-to-work concepts. Each greenfield city will concentrate on select sectors based on competitive advantages from the existing industrial and supply chain ecosystem, skill base, infrastructure connectivity and proximity to existing urban demand centers.

Significance

  • Strategically located along existing industrial corridors, the 12 clusters will be positioned as potential global manufacturing hubs to achieve $2 trillion in exports by 2030. This underpins the promotion of export-oriented manufacturing as one of the foundational objectives behind this initiative.
  • The overarching objective behind the geographically diversified positioning of the clusters is to boost the existing local industrial and supply chain ecosystem. They are also intended to create employment opportunities and support equitable and sustainable development,

Implications

  • The planned industrial cities are expected to substantially improve domestic manufacturing capabilities, strengthen the global competitiveness of India’s industrial infrastructure and further position the country as a key investment destination for companies diversifying their global value chains. The cities will be developed in conjunction with other key policy initiatives, including the production-linked incentive schemes across 14 sectors and the PM GatiShakti National Master Plan’s focus on multimodal logistical connectivity.
  • Electronics system design and manufacturing, food and beverages, electric vehicles and batteries, renewables, aerospace and defense will be some of the key sectors to benefit from and gain additional investments across the greenfield smart cities.

We will keep you updated on developments in India as they occur. If you have questions or comments, please contact BGA India Managing Director Ratan Shrivastava at ratan@bowergroupasia.com.

Best regards,

BGA India Team

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Managing Director

Ratan is a senior executive and management consulting professional who has a proven track record in government, consulting and industry across India and Southeast Asia, with a wide network across stakeholders. He has been instrumental in developing and implementing growth strategies for both the public and private sector and has led diverse teams to secure new market opportunities. Prior to joining BGA, Ratan was at KPMG India where he helped the integration of the small and medium industry clusters, with the domestic and global aerospace, defense and space supply chains. He also served as an advisor at the Federation of ... Read More