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What is the significance of Industrial Corridors in India? Identifying industrial corridors, explain their main characteristics. (UPSC IAS Mains 2018 General Studies Paper – 1)

Industrial Corridors are stretches across the country allocated to a specific geographical area with the intent to stimulate industrial development. It aims to create an area with a cluster of manufacturing or other industries and gives an impetus to smart and sustainable cities by leveraging on the high speed, high connectivity transportation system.

Significance of Industrial Corridors in India

  • Industrial Corridors recognise the inter-dependence of various sectors of the economy and offer effective integration between industry and infrastructure leading to overall economic and social development. Industrial corridors constitute world class infrastructure such as high-speed transportation.
  • The establishment of NMIZ in a scattered manner along the industrial corridor across the length of the state would prevent distress migration and provide people with job opportunities close to their dwelling place.
  • It will prevent concentration of industries in one particular location which exploited the environment beyond its carrying capacity and caused environmental degradation.
  • The production of export surplus would generate employment opportunities and raise per capita incomes.
  • Moreover, people would find job opportunities close to their homes and would not have to migrate to far-off places thereby preserving family as an institution. This will also increase social integration in the country.
  • The spread effects of industrial corridors in socio-economic terms are many such as setting up of industrial townships, educational institutions, roads, railways, airports, hospitals that will generate employment and raise standard of living.
  • Production costs would come down due to improved transportation system and agglomeration effect, making Indian goods competitive in domestic as well as foreign markets.
  • Provide necessary logistics infrastructure needed to reap economies of scale, thus enabling firms to focus on their areas of core competence.
  • People would find job opportunities close to their homes which would curb migration towards cities, thus preventing stress on already burdened urban landscape.
  • Prevention of concentration of industries in one particular location would prevent exploitation of environment as well as ensure balanced development in the country.

Major industrial corridor in India

  • Delhi-Mumbai Industrial Corridor (DMIC): The Delhi–Mumbai Industrial Corridor Project (DMICDC) is a planned industrial development project between India’s capital, Delhi and its financial hub, Mumbai. It is one of the world’s largest infrastructures spread across six states.
  • Chennai-Bengaluru Industrial corridor: It is expected to boost commerce between south India and East Asia by enabling quicker movement of goods from these places to the Chennai and Ennore ports. The project with assistance from the Japan International Cooperation Agency (JICA) will be developed in collaboration with the governments of three southern states. Both Road and Rail connectivity for Freight movement will be upgraded in this corridor.
  • The East Coast Economic Corridor (ECEC): The ECEC running along the entire east coast of India from Kolkata to Kanyakumari is a multimodal, regional maritime corridor that can play a vital role in unifying the large domestic market, as well as integrating the Indian economy with the dynamic global value chains of Southeast and East. It would play a crucial role in the Government of India’s (GoI) Make in India campaign and also supports the port-led industrialisation strategy under the Sagar Mala initiative and the Act East Policy by linking domestic companies with the vibrant global production networks of East and Southeast Asia.
  • Amritsar kolkata industrial Corridor (AKIC): In order to give a boost to industrial development in the densely populated States of Northern and Eastern India. The AKIC will also leverage the Inland Water System being developed along National Waterway-1 which extends from Allahabad to Haldia.
  • North East Myanmar Industrial Corridor: It has been initiated from the Tokyo Declaration for India-Japan Special Strategic and Global Partnership for enhanced connectivity and development in Northeast which would catalyse economic development and increase prosperity in the region.

An industrial corridor is a package of infrastructure spending allocated to a specific geographical area, with the intent to stimulate industrial development. The challenges while creating ICs would include correctly assessing the demand and viability, transport options for goods and workers, land values, and economic incentives for companies. The economic and financial feasibility of ICs should be ensured by attracting potential investors to set up manufacturing units at National Investment and Manufacturing Zones (NMIZs). India will also have to rely on foreign players for innovative technologies. The fundamental focus of ICs should be on improving both Industrial and Urban Infrastructure.







POSTED ON 29-10-2023 BY ADMIN
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