Infrastructure Figures Key in New Industrial Policy

Key Highlights

·         Shift in policy from firm-level incentives to infrastructure-led integrated manufacturing hubs.

·         Union Budget push: 3 chemical parks, 7 PM MITRA parks, MSME clusters, ₹10,000 crore Biopharma SHAKTI.

·         Public capital expenditure increased sharply from ₹2 lakh crore (FY15) to ₹12.2 lakh crore (FY27 BE).

·         MSMEs (7.47 crore units) contribute 35.4% of manufacturing output.

Role of Manufacturing in India

·         Contributes 16–17% of GDP and employs over 27 million workers.

·         Target: Increase share to 25% of GDP by 2047.

·         Critical for India’s transition to a $30–35 trillion economy.

Global Context & Strategy Shift

·         Competitiveness now driven by reliability, resilience, and integration, not just low costs.

·         Rising importance of Global Value Chains (GVCs) and high-tech manufacturing.

·         Integrated hubs enable scale, productivity, and value chain integration.

India’s Manufacturing Transformation

·         Shift from project-based to system-level infrastructure planning.

·         India ranked 3rd most attractive manufacturing destination globally.

·         Medium & high-tech sectors contribute 46.3% of manufacturing value added.

Types of Manufacturing Hubs

1. Large Integrated Manufacturing Hubs

·         Plug-and-play industrial zones with shared infrastructure & logistics.

·         Example: 20 industrial smart cities under NICDP (4 completed).

·         PM MITRA parks for textile value chain integration.

2. Sector-Specific Ecosystems

·         Tailored infrastructure for key industries:

o    Bulk Drug Parks (3 states)

o    Semiconductors & electronics (Semicon India, ECMS 2.0)

o    Biopharma SHAKTI (₹10,000 crore)

3. MSME Clusters

·         MSMEs contribute:

o    35.4% manufacturing output

o    48.58% exports

o    31.1% GDP

·         Supported via MSE-CDP (580 projects) and common facility centres.

4. Corridor-Linked Industrial Nodes

·         Integrated with logistics and transport corridors.

·         Key corridors: DMIC, CBIC, AKIC, VCIC.

Infrastructure & Governance Reforms

·         PM Gati Shakti: Integrated planning across ministries and states.

·         India Infrastructure Project Development Fund (IIPDF): Supports project preparation.

·         National Infrastructure Enablement Index (NIEI): Measures state readiness.

State-Level Initiatives

·         Uttar Pradesh: Defence Industrial Corridor (6 nodes).

·         Tamil Nadu: Electronics & automobile clusters (“Detroit of Asia”).

·         Gujarat: Port-linked industrial hubs.

Budget 2026–27: Key Announcements

·         Chemicals: 3 new chemical parks.

·         Textiles: Expansion of PM MITRA parks.

·         MSMEs: Strengthening clusters & common facilities.

·         Capital goods: Tool rooms, testing infrastructure.

·         Infrastructure: Continued PM Gati Shakti rollout.

·         Biopharma: ₹10,000 crore SHAKTI + NIPERs + clinical trial network.

Conclusion

·         India’s strategy emphasizes integrated, infrastructure-led manufacturing ecosystems.

·         Focus on Tier-2 & Tier-3 cities for inclusive industrial growth.

·         Success depends on coordination, execution capacity, and sustained public investment.

 

<PIB Press Release/28.04.2026>

[ABS News Service/29.04.2026]