India to get 12 new industrial cities to boost manufacturing; DPIIT to approach Cabinet

The country will have 12 new industrial cities in different states like the ones developed in Greater Noida, Uttar Pradesh and Dholera in Gujarat to further boost domestic manufacturing, a top government official said.

Out of this, two are coming up in Andhra Pradesh and one in Bihar.

The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh said that eight such cities are already under different stages of implementation.

Trunk infrastructure has been created in four cities - Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh) and allotment of land plots is underway for the industry.

Similarly in the other four, the government's special purpose vehicle is in the process of construction of the basic infrastructure like road connectivity, water and power supply.

With eight already under the development stage and the announcement of 12 new in the Budget, the total count of these cities in the country to 20, Singh told PTI.

"These are industrial smart cities. These 12 new cities will make the count to 20. We built the trunk infrastructure and then gave the plots. We take environmental clearance for the entire city, so the company gets the 'plug and play' kind of things," he said, adding the department will approach the Union cabinet for the new ones.

The plans are ready and the land is with the state governments and "We just have to approve the equity to the SPV (Special Purpose Vehicle), " he added.

The move will help in increasing the share of manufacturing in the country's GDP and creating jobs.

Commenting on these smart cities announcements, Ashoo Gupta, Partner, Shardul Amarchand Mangaldas & Co, said that this innovative reform, in collaboration with states and the private sector, can significantly boost industrial growth and city planning.

"These projects will become dynamic economic centres that drive development and innovation, creating a lasting impact. Usually, the government constructs essential infrastructure and provides land to industries, attracting investments by offering high-quality, dependable, eco-friendly, and robust infrastructure," Gupta added.

In the Budget 2024-25, the government has also announced other measures such as customs duty rationalisation to promote manufacturing and boost exports.