The Union Cabinet recently approved the development of 12 new industrial cities across 10 states, aiming to significantly bolster domestic manufacturing with an estimated investment of INR 28,602 crore. These cities, strategically located along six major industrial corridors, represent a major advance in India's drive to enhance its manufacturing capabilities and overall economic growth. The new industrial areas will be situated in Khurpia (Uttarakhand), Rajpura-Patiala (Punjab), Dighi (Maharashtra), Palakkad (Kerala), Agra and Prayagraj (Uttar Pradesh), Gaya (Bihar), Zaheerabad (Telangana), Orvakal and Kopparthy (Andhra Pradesh), and Jodhpur-Pali (Rajasthan).

Union Minister Ashwini Vaishnaw announced that the Cabinet had approved these projects under the National Industrial Corridor Development Programme (NICDP). This strategic move will transform India's industrial landscape, creating a robust network of industrial nodes and cities that will significantly drive the nation's economic growth and competitiveness on a global scale. The development team will build each new city based on greenfield smart city principles, ensuring that the cities meet international standards and feature advanced infrastructure to support sustainable and efficient industrial operations.

The NICDP is projected to generate significant employment opportunities, with the potential to create around 1 million direct jobs and up to 3 million indirect jobs through planned industrialisation. The government anticipates completing these projects by 2027. All 12 projects have already completed basic environmental clearances and land acquisitions. Following the Cabinet Committee on Economic Affairs' approval of the projects, Commerce and Industry Minister Piyush Goyal stated that the initiative is likely to attract investments totalling at least INR 1.5 lakh crore.

Minister Goyal highlighted that these industrial smart cities would comprehensively span the country, akin to a "golden quadrilateral." He stressed the importance of working closely with state governments to develop multi-modal hubs. This approach seeks to integrate these new cities into a cohesive network of industrial zones, ensuring their contribution to the nation's economic framework. Goyal also noted that these new cities would join eight others currently at various stages of development, including Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Krishnapatnam (Andhra Pradesh), where key infrastructure is already in place.

The government envisions these industrial nodes as key drivers in achieving its USD 2 trillion export goal by 2030, aligning with a broader vision of a self-reliant and globally competitive India. The development of these industrial townships will follow a 50:50 partnership model between the central government and the states, with states primarily responsible for providing the land required for the projects. The Centre will contribute around INR 12,000 crore in equity, while the states will cover land costs estimated at INR 11,000 crore. If infrastructure costs exceed projections, states can secure loans from the Centre with an anticipated debt component of INR 2,000 crore. Special purpose vehicles established for these projects will fund the remainder through internal accruals.

The Union Cabinet's approval for the development of 12 new industrial cities across 10 states is a significant step towards enhancing India's manufacturing capabilities and economic growth. With an investment of INR 28,602 crore, these cities will be strategically located along major industrial corridors and are expected to create around 1 million direct jobs and up to 3 million indirect jobs by 2027. The initiative, part of the National Industrial Corridor Development Programme, aims to establish a strong network of smart and sustainable industrial nodes, contributing to India's goal of achieving a USD 2 trillion export target by 2030. This collaborative effort between the central and state governments highlights India's commitment to becoming a self-reliant and globally competitive economy.