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Industrial Corridors in India

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  • Last Updated : 30 Nov, 2021

Industrial corridors are dedicated high-end infrastructural multi-model transport corridors in India that are solely for the aim of providing hassle-free fast mobility for industrial purposes. A manufacturing or other industry cluster in a specific area is the goal of an industrial corridor. This type of Corridor is frequently built in areas with pre-existing infrastructures like ports, highways, and railroads that would pass through many states as the main connectivity.

The Indian government has identified, planned, and launched five industrial corridor projects. These corridors spread across India, with a strategic focus on inclusive development to promote industrialization and planned urbanization. By 2025, these projects are expected to play a critical role in increasing the manufacturing sector’s to reach US$ 1 trillion which will contribute about 25% to India’s GDP.

Significance of Industrial Corridors in India:

  1. The corridor approach is a tried-and-true strategy for ensuring industrial development in underserved areas.
  2. Opportunities for private sector investment in a variety of infrastructure projects related to the industrial opportunity for exploitation.
  3. Ensure easy access to industrial production units, lower transportation and communication costs, faster delivery, and lower inventory costs. As a result, the goal of an industrial corridor strategy is to build a strong industrial base that is supported by world-class competitive infrastructure, as a precondition for attracting investments in export-oriented industries and manufacturing.
  4. Production costs will fall as a result of the improved transportation system and agglomeration effect, making Indian goods more competitive in both domestic and international markets.
  5. Provide the necessary logistics infrastructure to achieve economies of scale, allowing businesses to focus on their core competencies.
  6. Industrial corridors have a wide range of socioeconomic effects, including the establishment of industrial townships, educational institutions, roads, railways, airports, and hospitals, all of which will generate jobs and raise living standards.
  7. Preventing the concentration of industries in one location would prevent environmental exploitation while also ensuring the balanced development of the country.

Characteristics of Industrial Corridors:

Industrial Corridors recognize the economy’s interdependence and provide effective integration between industry and infrastructure, resulting in overall economic and social development. Industrial corridors include world-class infrastructures like high-speed transportation (rail, road), ports with state-of-the-art cargo handling equipment, modern airports, special economic regions/industrial areas, logistic parks/transshipment hubs, knowledge parks focused on feeding industrial needs, supporting infrastructures such as townships and real estate, and other urban infrastructure, as well as an enabling policy framework.

  1. Industrial corridors allow the private sector to invest in a variety of infrastructure projects related to the exploitation of industrial opportunities. However, the availability of efficient transportation and other infrastructure support systems is required for the successful implementation of industrial corridor opportunities. The corridor approach to industrial development focuses on the influence regions and underutilized economic development potential.
  2. Apart from infrastructure improvements, businesses and industries along the corridor will benefit from improved access to industrial production units, lower transportation and communications costs, faster delivery times, and lower inventory costs in the long run. As a result, the goal of an industrial corridor strategy is to build a strong industrial base that is supported by world-class competitive infrastructure in order to attract investments in export-oriented industries and manufacturing.

Five industrial corridors of India:

1. Delhi Mumbai Industrial corridor: The Delhi-Mumbai Industrial Corridor is a US$ 100 billion mega-infrastructure project with financial and technical assistance from Japan that spans 1483 kilometers between India’s political and business capitals, Delhi and Mumbai.

2. Chennai Bengaluru Industrial corridor: The project will be developed in collaboration with the governments of three southern states i.e. Tamil Nadu, Andhra Pradesh, and Karnataka, with assistance from the Japan International Cooperation Agency (JICA). In this corridor, freight connectivity will be improved on both the road and the rail.

3. Bengaluru Mumbai Economic Corridor: The Mumbai-Bangalore economic corridor runs through major cities in Karnataka and Maharashtra, (including Chitradurga, Hubballi-Dharwad, Belagavi, Solapur, Sangli, Pune, and Mumbai) and it is developed with the help of the UK.

4. Amritsar Kolkata Industrial corridor: It is a large-scale initiative that will create an industrial zone encompassing seven Indian states and benefiting 20 cities within those states.

  • Infrastructure and industry will be expanded significantly in the states along the Corridor’s course, including industrial clusters and rail, road, port, and air connectivity.
  • This Industrial Corridor is one of the world’s most densely inhabited areas, housing over 40% of India’s population and connecting Amritsar with Dankuni by 1839 km-long connectivity.
  • The AKIC will operate as a catalyst for progress in this region, which requires a big push for industrialization and job creation. The project, which aims to enhance India’s manufacturing industry, was approved by the Indian government on January 20, 2014.
  • Meerut, Muzaffar Nagar, Bareilly, Aligarh, Kanpur, Lucknow, Allahabad, and Varanasi are among the cities in Uttar Pradesh that will be covered by the AKIC Project.

5. East Coast industries corridor (ECEC): The part of West Bengal, Odisha, Andhra Pradesh, Tamil Nadu. Phase-I of this corridor is from Vizag to Chennai.

  • The Vizag-Chennai Industrial Corridor (VCIC) is the first coastal economic corridor in the country.
  • The Asian Development Bank (ADB) approved loans and grants totaling US$ 631 million for infrastructure development along the VCIC in September 2016.
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