PM Modi Launches Grand Necklace of 12 New Industrial Smart Cities Under NICDP: A New Era of Industrialization

In a landmark initiative aimed at transforming India’s industrial landscape, Prime Minister Narendra Modi has unveiled a grand plan for the creation grand necklace of industrial smart cities or say 12 new industrial smart cities under the National Industrial Corridor Development Programme (NICDP). These cities are envisioned as hubs of innovation, sustainability, and economic growth, contributing significantly to India’s ambition of becoming a global manufacturing powerhouse.

This project is part of the broader Make in India initiative, which seeks to encourage manufacturing within the country, thus reducing dependence on imports and creating jobs for millions of Indians. The development of these smart cities is not just about building new infrastructure but creating ecosystems that integrate advanced technology with industrial development.

The Vision of NICDP

The National Industrial Corridor Development Programme (NICDP) aims to develop world-class industrial infrastructure that will foster manufacturing, enhance exports, and generate employment. The program envisions the creation of smart, sustainable industrial cities that are integrated with global supply chains.

These cities will be equipped with state-of-the-art infrastructure, including high-speed transport links, smart utilities, and advanced communication networks. The NICDP is not just about economic growth but also about sustainable development, with an emphasis on green technologies and resource efficiency.

The 12 New Industrial Smart Cities: An Overview

The 12 new industrial smart cities are strategically located along major industrial corridors in India, ensuring connectivity to key domestic and international markets. These cities are part of the larger plan to develop five major industrial corridors in India:

1. Delhi-Mumbai Industrial Corridor (DMIC)
2. Chennai-Bengaluru Industrial Corridor (CBIC)
3. Amritsar-Kolkata Industrial Corridor (AKIC)
4. Bengaluru-Mumbai Industrial Corridor (BMIC)
5. Vizag-Chennai Industrial Corridor (VCIC)

Each of these corridors will host multiple industrial nodes, with the new smart cities forming the backbone of these nodes.

Table: List of the 12 New Industrial Smart Cities

The Strategic Importance of the Corridors

The industrial corridors play a crucial role in the country’s economic development strategy. They are designed to create strong economic regions by connecting major production centers with key markets. The development of these corridors is expected to lead to increased industrial output, greater exports, and significant job creation.

Delhi-Mumbai Industrial Corridor (DMIC)

The DMIC is the most prominent of these corridors, stretching across six states: Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat, and Maharashtra. It covers a total length of about 1,500 km and includes several industrial nodes, each with its own special economic zones (SEZs), industrial clusters, and infrastructure projects.

The DMIC is expected to attract investments of over USD 90 billion and create millions of jobs. The smart cities within this corridor, such as Dholera and Shendra-Bidkin, will serve as the epicenters of industrial activity, offering world-class facilities to industries.

Chennai-Bengaluru Industrial Corridor (CBIC)

The CBIC connects two of India’s most important industrial regions: Chennai and Bengaluru. This corridor is designed to enhance the economic synergy between the two cities and surrounding regions. With a focus on high-tech industries, the CBIC will host smart cities like Tumakuru and Hosur, which will drive innovation and technological advancement in sectors like aerospace, electronics, and machinery.

Bengaluru-Mumbai Industrial Corridor (BMIC)

The BMIC aims to connect the financial capital, Mumbai, with the technology hub, Bengaluru. This corridor is expected to foster industries such as automotive, electronics, and engineering. The smart city of Dharwad, located in this corridor, will play a key role in boosting industrial output and exports from the region.

Sustainable and Smart Development

The development of these industrial smart cities is guided by the principles of sustainability and smart technology integration. The cities will incorporate green building standards, efficient waste management systems, and renewable energy sources to minimize their environmental footprint.

Expected Economic Impact

The establishment of these 12 industrial smart cities is expected to have a profound impact on India’s economy. The cities are projected to attract investments worth hundreds of billions of rupees and create millions of direct and indirect jobs. They will also enhance India’s manufacturing capabilities, reduce dependency on imports, and increase exports.

These cities are also expected to contribute significantly to the growth of small and medium enterprises (SMEs) by providing them with access to world-class infrastructure and global markets. This will help in the inclusive growth of the economy, benefiting various sectors and regions.

Challenges and Future Prospects

While the development of these industrial smart cities holds immense promise, it also faces several challenges. These include the need for significant financial investments, coordination between various government agencies, and the need to ensure that the benefits of these developments are widely shared.

However, with the government’s strong commitment and the active participation of the private sector, these challenges can be overcome. The success of these cities will depend on effective planning, timely execution, and the ability to adapt to changing economic and technological conditions.

How the project going to impact India in the long term?

The development of the 12 new industrial smart cities under the National Industrial Corridor Development Programme (NICDP) is set to have profound and far-reaching effects on India’s economy, society, and global standing. Here’s how these smart cities are likely to impact India in the long term:

1. Economic Growth and Industrial Expansion

a. Manufacturing Growth: The creation of these smart cities will significantly boost India’s manufacturing sector, which is crucial for economic growth. By providing world-class infrastructure and technology, these cities will attract both domestic and foreign investments, leading to an increase in industrial output.

b. GDP Contribution: With enhanced industrial activity, these cities are expected to contribute substantially to India’s Gross Domestic Product (GDP). The manufacturing sector, which currently contributes around 17-18% of GDP, could see a substantial increase, pushing the GDP growth rate upwards.

c. Export Competitiveness: The focus on high-tech industries and global supply chain integration will enhance India’s export competitiveness. This will help in reducing the trade deficit and improving the balance of payments. Over time, India could become a key player in global markets, particularly in sectors like electronics, automotive, and machinery.

2. Job Creation and Skill Development

a. Employment Generation: The development of these smart cities is expected to create millions of jobs, both directly in industries and indirectly in supporting sectors such as logistics, construction, and services. This will help in addressing the challenge of unemployment, particularly in regions where these cities are located.

b. Skill Development: As these cities focus on advanced industries, there will be a growing demand for a skilled workforce. This will necessitate the establishment of training centers and educational institutions that cater to the needs of these industries. In the long term, this will lead to a more skilled and employable workforce, which is crucial for sustained economic growth.

3. Urbanization and Infrastructure Development

a. Urban Growth: The development of these industrial smart cities will spur urbanization, leading to the growth of new urban centers. This will help in decongesting existing metropolitan areas by redistributing population and economic activities.

b. Infrastructure Modernization: The smart cities will serve as models for infrastructure development across the country. With their focus on advanced transport systems, smart utilities, and sustainable urban planning, these cities will set new benchmarks for urban infrastructure in India.

c. Regional Development: The strategic location of these cities along key industrial corridors will promote balanced regional development. By connecting less developed regions with major economic hubs, these cities will help in reducing regional disparities in economic growth and development.

4. Technological Advancements and Innovation

a. Technological Integration: The smart cities will be equipped with cutting-edge technology in areas like communication, energy, and transport. This will drive technological innovation and encourage the adoption of new technologies in other parts of the country.

b. R&D and Innovation Hubs: By fostering an environment conducive to research and development (R&D), these cities could become hubs of innovation. This will not only lead to the development of new products and services but also enhance India’s global standing in technology and innovation.

c. Digital Economy Growth: The integration of digital technologies in these cities will contribute to the growth of the digital economy. This includes areas like e-commerce, fintech, and digital services, which are expected to play a crucial role in India’s economic future.

5. Sustainable Development and Environmental Impact

a. Green Energy Adoption: The focus on renewable energy sources in these smart cities will contribute to India’s goal of increasing the share of renewables in its energy mix. This will help in reducing carbon emissions and combating climate change.

b. Resource Efficiency: The smart cities’ emphasis on efficient resource management, including water, waste, and energy, will promote sustainability. Over time, the practices developed in these cities can be replicated across the country, leading to more sustainable urban and industrial development.

c. Environmental Standards: By adhering to international environmental standards, these cities will lead the way in promoting green building practices, sustainable transport, and low-carbon industrial processes. This will help in reducing the environmental footprint of India’s industrial growth.

6. Socioeconomic Impact

a. Improved Quality of Life: The development of smart cities is expected to lead to a significant improvement in the quality of life for residents. With better infrastructure, efficient public services, and green spaces, these cities will offer a higher standard of living compared to traditional urban centers.

b. Social Inclusion: The smart cities are designed to be inclusive, providing opportunities for all sections of society. This includes affordable housing, access to education and healthcare, and employment opportunities, which will help in reducing poverty and inequality.

c. Enhanced Urban Governance: The use of smart technologies will improve urban governance by enabling better decision-making, transparency, and citizen participation. This will lead to more responsive and accountable city management.

7. Global Positioning and Strategic Importance

a. Attracting Foreign Investment: The creation of these smart cities will position India as an attractive destination for foreign investors. With world-class infrastructure and favorable policies, these cities will draw investments from multinational corporations, further integrating India into the global economy.

b. Strengthening Global Supply Chains: By developing these cities along key industrial corridors, India will strengthen its position in global supply chains. This will not only boost exports but also increase India’s resilience to global economic shocks.

c. Enhancing Strategic Influence: As these smart cities become centers of economic and technological power, they will enhance India’s strategic influence in the region and the world. This will be particularly important in the context of India’s growing role in global geopolitics and trade.

Salient Features of the 12 New Industrial Smart Cities Project

1. Strategic Location and Connectivity: The 12 smart cities are strategically located along five major industrial corridors, ensuring seamless connectivity to key domestic and international markets. This enhances the integration of these cities into global supply chains.
2. Advanced Infrastructure and Technology: These cities will be equipped with state-of-the-art infrastructure, including high-speed transport links, smart utilities, and advanced communication networks. The focus is on creating a high-tech industrial ecosystem that supports innovation and efficiency.
3. Sustainability and Green Practices: The project emphasizes sustainable development, incorporating green building standards, renewable energy sources, efficient waste management, and smart water management systems. These cities are designed to minimize environmental impact while supporting industrial growth.
4. Economic Growth and Job Creation: The cities are expected to attract significant investments, boost manufacturing output, and create millions of jobs across various sectors, including high-tech industries like electronics, aerospace, and pharmaceuticals.
5. Urbanization and Regional Development: The development of these smart cities will spur urbanization, reduce congestion in existing metros, and promote balanced regional development. They are designed to be inclusive, providing opportunities for economic and social advancement across diverse population segments.

FAQs: Grand Necklace of Industrial Smart Cities