Industrial Parks in India: Driving Manufacturing Growth, Smart Infrastructure

Industrial parks in India have emerged as powerful engines of economic growth, industrialisation and infrastructure development. With planned layouts, shared facilities and streamlined governance, industrial parks play a crucial role in strengthening India’s manufacturing ecosystem, attracting domestic and foreign investment, generating employment and promoting sustainable industrial development. In line with the vision of Make in India, Atmanirbhar Bharat and Ease of Doing Business, industrial parks are central to India’s long-term industrial strategy.

What Are Industrial Parks?

An industrial park is a planned and demarcated area developed exclusively for industrial and manufacturing activities. These parks provide common infrastructure and services such as:

• Power, water and gas supply

• Internal roads and logistics facilities

• Warehousing and testing laboratories

• Effluent treatment and waste management systems

• Training centres and skill development facilities

• Security, digital connectivity and park-level governance

Dedicated park authorities ensure regulatory compliance, efficient firm entry and long-term sustainability.

Scale of Industrial Parks in India

India has developed one of the largest industrial land ecosystems globally. As per official data:

• Over 4,500 industrial parks are mapped under the India Industrial Land Bank (IILB)

• These parks cover around 7.70 lakh hectares of land

• Nearly 1.35 lakh hectares remain available for future industrial development

• More than 6.45 lakh industrial plots have been identified, with over 1.25 lakh vacant plots

This large availability of industrial land positions India as an attractive destination for global manufacturing.

India Industrial Land Bank (IILB)

The India Industrial Land Bank (IILB) is a GIS-enabled digital platform developed by the Department for Promotion of Industry and Internal Trade (DPIIT). It provides real-time information on:

• Location of industrial parks

• Plot size and availability

• Connectivity to highways, ports and railways

• Utilities and infrastructure

The IILB enhances transparency, reduces land acquisition challenges and improves investor confidence.

Plug-and-Play Industrial Parks

To accelerate industrial growth, the government is promoting plug-and-play industrial parks, which offer ready-to-use infrastructure for industries. These parks significantly reduce project implementation time and cost.

In the Union Budget 2025–26, an allocation of ₹2,500 crore was made for developing plug-and-play industrial parks across the country. Currently, India has over 300 such parks, supporting rapid industrial expansion.

National Industrial Corridor Development Corporation (NICDC)

The NICDC is developing large industrial nodes, parks and smart cities along major industrial corridors such as:

• Delhi–Mumbai Industrial Corridor

• Chennai–Bengaluru Industrial Corridor

• Amritsar–Kolkata Industrial Corridor

Under NICDC, 20 industrial parks and smart cities are being developed. These projects integrate manufacturing with logistics, urban infrastructure and digital systems, creating globally competitive industrial ecosystems.

Industrial Park Rating System (IPRS)

To benchmark performance and quality, the government introduced the Industrial Park Rating System (IPRS):

• IPRS 2.0 classified parks as Leaders, Challengers and Aspirers

• IPRS 3.0, launched in 2025, includes parameters such as:

  • Sustainability and green infrastructure

  • Digitalisation and smart utilities

  • Logistics and multimodal connectivity

  • Skill ecosystem linkages

  • Tenant satisfaction and feedback

This rating system encourages competition, transparency and continuous improvement.

Role of Industrial Parks in Manufacturing Growth

Industrial parks strengthen India’s manufacturing base by:

• Reducing logistics and transaction costs

• Offering single-window approvals and regulatory predictability

• Attracting MSMEs, startups and large enterprises

• Supporting sector-specific clusters such as electronics, textiles, pharmaceuticals and automobiles

They also enable economies of scale and supply chain integration.

Promoting Sustainable and Inclusive Development

Modern industrial parks are designed as models of sustainable industrialisation. Key features include:

• Compliance with environmental norms

• Energy efficiency and renewable energy adoption

• Water recycling and waste management

• Emission monitoring and pollution control

• Protection of biodiversity

Social infrastructure, worker safety, gender-sensitive facilities and community engagement are integral components of park planning.

Boosting Foreign Direct Investment (FDI)

Industrial parks play a vital role in attracting foreign direct investment (FDI). According to global investment reports, India ranks among the top destinations for Greenfield investments.

During April–August 2025–26, India recorded USD 43.76 billion in provisional FDI inflows. Industrial parks, supported by stable policies and infrastructure readiness, are key drivers of this trend.

Ease of Doing Business and Policy Support

The success of industrial parks is reinforced by reforms such as:

• Single-window clearance systems

• GST implementation

• Startup India and Production Linked Incentive (PLI) schemes

• Compliance simplification and digitisation

These reforms reduce uncertainty and improve the business environment for investors.

Challenges and Way Forward

Despite progress, challenges remain, including land acquisition delays, uneven regional development and infrastructure gaps. Going forward, focus is needed on:

• Digital land records and faster approvals

• Green and climate-resilient infrastructure

• Skill development aligned with industry needs

• Integration with global value chains

Conclusion

Industrial parks are at the heart of India’s industrial transformation. With planned infrastructure, coordinated governance and a strong focus on sustainability and digitalisation, they are set to become long-term engines of economic growth, employment generation and global manufacturing competitiveness. Continued policy support and innovation will ensure that industrial parks remain key drivers of India’s journey towards becoming a global manufacturing hub.

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