India to Develop 12 New Industrial Smart Cities to Boost Manufacturing
New Delhi – The Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the Union Cabinet for approval to develop 12 new industrial smart cities across various states, modeled on successful hubs like Greater Noida (Uttar Pradesh) and Dholera (Gujarat). The plan aims to further strengthen India’s domestic manufacturing base and generate large-scale employment.
According to DPIIT Secretary Rajesh Kumar Singh, two new cities will be established in Andhra Pradesh and one in Bihar, with the remaining locations spread across other states. Currently, eight industrial smart cities are at different stages of development, with trunk infrastructure already completed in four – Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Krishnapatnam (Andhra Pradesh) – where land allotments for industries are underway.
The other four cities are in the infrastructure construction phase, focusing on road connectivity, water supply, and power availability. Once the new 12 are approved, India’s total count will rise to 20 industrial smart cities.
“These cities follow a plug-and-play model where the government secures environmental clearance for the entire area, develops core infrastructure, and then provides ready-to-use industrial plots,” Singh explained. The land for the new projects is already available with state governments, and the final step is equity approval for their Special Purpose Vehicles (SPVs).
Industry experts believe this initiative, in partnership with state governments and the private sector, could transform India’s manufacturing landscape. “These projects will become dynamic economic centres that drive innovation, create jobs, and deliver sustainable, high-quality infrastructure,” said Ashoo Gupta, Partner at Shardul Amarchand Mangaldas & Co. The Budget 2024–25 also introduced complementary measures, including customs duty rationalisation, to promote manufacturing and boost exports.
