India’s Industrial Smart Cities to Drive Global Manufacturing

India’s march towards a digital future is not just about connecting people; it’s about reimagining urban spaces as engines of industrial growth and innovation. Industrial smart cities, where technology and infrastructure intertwine to drive industrial activity, are at the heart of this transformation. Unlike conventional smart cities, which focus on enhancing citizen services, industrial smart cities are designed to attract industries, foster innovation, and create opportunities for businesses and workers alike. This shift is not merely about building smarter cities; it’s about building a new India—one that is digitally empowered, industrially robust, and economically vibrant.

The vision is ambitious: to create world-class industrial zones that provide advanced infrastructure, efficient logistics, and digital services to industries, helping them compete globally. This vision is encapsulated in initiatives like “Make in India” and “Digital India,” which aim to position India as a global hub for manufacturing, innovation, and investment.

The Indian government’s strategy to merge smart city development with industrial corridors is a testament to this vision. By building tech-driven hubs with improved connectivity, the government aims to boost manufacturing infrastructure, reduce logistical costs, create jobs, and prevent urban overcrowding. This approach is not just about economic growth; it’s about creating balanced regional development and decentralizing economic hubs from metro areas.

The Delhi-Mumbai Industrial Corridor (DMIC), one of the largest infrastructure projects estimated to cost US$90 billion, is a flagship example of this strategy. This mega project, a joint venture between India and Japan, incorporates nine mega industrial zones, high-speed freight lines, ports, airports, and a massive power plant. The corridor will stretch across eight industrial smart cities, including Dholera in Gujarat and Shendra-Bidkin in Maharashtra, each designed to attract foreign investment and foster industrial growth. “This is one of the largest infrastructure projects estimated to cost US$ 90 billion,” said the government.

But the DMIC is just the beginning. The National Industrial Corridor Development Programme (NICDP) aims to create up to one million direct and three million indirect jobs by developing 12 new industrial smart cities across six major corridors in 10 states. This will bring the total number of industrial cities in India to 20, each a beacon of technological innovation and industrial prowess.

The investment required for these projects is substantial, but the returns are expected to be even greater. The DMIC alone is estimated to create millions of construction and industrial jobs, while the NICDP aims to generate up to four million jobs. These cities will not only create employment opportunities but also drive economic growth and improve living standards.

The development of industrial smart cities is also a response to the evolving needs of India’s workforce. As industries adopt automation and digital solutions, there is a growing demand for workers with specialized skills in AI, robotics, data analytics, and other advanced technologies. This shift is already evident in the curriculum of vocational training centres and educational institutions, which are aligning their programs with the needs of modern industries. The Indian government has recognised this need and invested in skill development programs through initiatives like Skill India.

Moreover, industrial smart cities are designed to attract a range of industries, particularly those aligned with emerging sectors such as clean energy, biotechnology, advanced manufacturing, and digital services. These industries not only create jobs in production and operations but also in Research and Development (R&D), marketing, sales, and management. For example, smart cities like Dholera in Gujarat are already attracting industries dealing with renewable energy, defence manufacturing, and aerospace.

The construction phase of these cities is itself a significant employment source. From roads and bridges to smart power grids and industrial zones, the development of industrial smart cities requires massive investment in infrastructure. This creates jobs in construction, civil engineering, project management, and real estate development, benefiting both skilled and unskilled labourers.

However, the success of these projects depends on strategic planning and timely execution. The government’s commitment to these initiatives is evident in the Smart Cities Mission (SCM), which aims to upgrade existing and create new cities using data and technology. More than 8,000 multi-sectoral projects are being developed by 100 selected cities, amounting to Rs. 1.6 lakh crore (US$ 19.06 billion). As of September 2024, over 90% of these projects have been completed, highlighting the government’s resolve to transform India’s urban landscape.

The development of industrial smart cities represents a transformative initiative that uses technology and infrastructure to boost job creation, enhance economic growth, and improve living standards. These projects, particularly the DMIC, aim to decentralize economic hubs from metro areas, promote balanced regional development, and attract foreign investment. Once fully developed, they will help slow the migration of people from tier 1 and 2 cities or smaller towns to overcrowded

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