The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has approved the establishment of 12 industrial smart cities along six major industrial corridors in 10 states, with an anticipated investment of Rs 28,602 crore.
These initiatives aim to attract significant investments, with an anticipated amount of around $18 Billion from major anchor industries and micro, small, and medium enterprises (MSMEs). This endeavour is projected to create about 1 million direct jobs and 3 million indirect jobs.
The upcoming establishment will increase the total count of industrial smart cities to 20 in the country, spanning across various states and positioned along industrial corridors. These new industrial cities are being developed as greenfield smart cities adhering to global standards. They are being constructed in anticipation of demand, following the plug-and-play model and walk-to-work concepts. These cities will feature advanced infrastructure to facilitate sustainable and efficient industrial operations.
List of Cities:
Advantages of this project:
Urbanization and Modernization: These cities will contribute to the modernization of rural areas by attracting migration, leading to urbanization. This will improve access to these areas’ education, healthcare, and other services.
Increased Exports: By consolidating manufacturing and production, these industrial cities can enhance the country’s export potential, aiding in diversifying the economy and generating foreign exchange.
Infrastructure Development: The establishment of these industrial cities will lead to the development of essential infrastructure, such as roads, ports, airports, and energy supplies. This development will benefit the surrounding regions and enhance connectivity, as many of the areas currently have poor connections with major cities.
Foreign Investment Attraction: These well-planned industrial cities will attract foreign direct investment (FDI), attracting multinational corporations seeking reliable manufacturing bases. This project is already projected to bring about $18 billion of investment into these cities.
Job Creation: This project is expected to generate over 1 million direct jobs and approximately 3 million indirect jobs in these areas. This initiative is crucial as the unemployment rate in India is currently at a 10-year high of over 9%.
The establishment of these urban areas is poised to yield significant economic advantages; however, it also presents substantial environmental risks. The realization of this comprehensive initiative is anticipated to lead to environmental degradation, labor exploitation, and notably, the displacement of indigenous communities.
Yet this massive project will stand as a testament to India’s rapid growth and ambition to become the world’s third-largest economy by 2027, surpassing countries like Germany and Japan, and trailing only behind China and the USA.