Over 4500 industrial
parks mapped in India
India’s
industrial parks are emerging as a central pillar of the country’s industrial
and investment strategy, supporting smarter infrastructure, sustainable
development, and stronger economic growth. As of December 2025, over 4,500 industrial parks
covering 7.7 lakh hectares
are mapped on the India
Industrial Land Bank (IILB), with 1.35 lakh hectares still
available for industrial use, providing large-scale opportunities for domestic
and foreign investors.
The
government is prioritising plug-and-play
industrial parks, backed by a ₹2,500 crore allocation in
the Union Budget 2025–26. There are 306
plug-and-play parks already in place, along with 20 NICDC-led industrial parks and smart
cities, offering ready infrastructure, faster project
execution, and improved ease of doing business.
Industrial
parks enhance productivity through shared infrastructure, clustering of firms,
and dedicated governance, while also promoting environmental sustainability, worker welfare, and community development.
They play a major role in job creation, skills development, technology
transfer, and integration into global value chains, acting as catalysts for
regional and urban development.
Quality
and competitiveness are reinforced through the Industrial Park Rating System (IPRS). The
latest IPRS 3.0,
launched in September 2025, expands evaluation parameters to include
sustainability, green infrastructure, logistics connectivity, digitalisation,
skill linkages, and tenant feedback, helping investors make informed decisions
and encouraging continuous improvement among states and park authorities.
Supported
by wide-ranging ease of
doing business reforms, digital land access, and strong policy
backing, industrial parks have become key drivers of FDI and export-led growth.
With India ranking among the world’s top destinations for greenfield
investments, these parks are expected to further strengthen manufacturing
competitiveness, attract global capital, and position India more firmly in
global industrial and value-chain networks.
Key Takeaways
·
India has
4500+ industrial parks mapped on the India Industrial Land Bank,
spanning 7.70 lakh hectares, with 1.35 lakh hectares still
available.
·
306
plug-and-play parks and 20
National Industrial Corridor Development Corporation Limited (NICDC)-led
parks/smart cities.
·
The Industrial
Park Rating System (IPRS) 3.0 brings a sharper focus on sustainability,
green infrastructure, logistics, digitalization, skill linkages, and tenant
feedback.
Introduction
Industrial
parks have emerged as a principal vehicle for accelerating the country’s
industry and innovation agenda. Developed in partnership with state governments
and the private sector, these parks are reinforcing India’s industrial base by
promoting investment, progress-driven development, and economic ascendancy.
They stimulate employment generation while also encouraging sustainable
development. As the government increasingly adopts the role of facilitator
rather than regulator, these parks are sculpting a globally competitive
industrial economy in India.
Industrial Parks
Empowering Competitive and Viable Growth
An industrial
park refers to a planned tract of land that is subdivided and developed for
industrial use, with or without ready-built factories, and supported by shared
facilities for multiple industries. These parks form an essential institutional
foundation and act as policy instruments that advance national economic
development goals by increasing industrial output and strengthening the pace of
economic progression.
Industrial
Parks balance economic growth with environmental and social
responsibility. Park management ensures adherence to environmental laws,
spreads awareness on standards, and rewards companies that follow eco-friendly
practices. They support resource efficiency by guiding firms on improved
technologies and conducting audits to identify savings. Emissions are
regularly monitored to control air, noise, and light pollution, while
strict oversight prevents soil and groundwater contamination. Biodiversity
protection is built into planning to safeguard ecosystem services, manage
climate risks, and use land efficiently.
These parks
also strengthen social well-being. They provide social infrastructure
for employees and nearby communities, along with safe accommodation where
necessary. Security systems protect workers and assets across the
industrial area. Health and safety are promoted through medical checks,
protective equipment, and monitoring of exposure levels. Gender-sensitive
facilities and workplace inclusion ensure equitable participation. Openness
to trade unions and civil society engagement helps improve labour conditions,
transparency, and community trust.
Building
Blocks of a Successful Industrial Park:
Special
regulatory regime- Industrial parks operate under liberal and
incentive-based rules for labour, land use, and foreign investment.
Integrated
infrastructure- They offer shared hard and soft facilities such
as utilities, telecom networks, waste systems, laboratories, internal roads,
one-stop clearances, training centres, security, and emergency services.
Defined
geography- Development takes place on clearly demarcated, master-planned land
with uniform standards for buildings and facilities.
Dedicated
management- A single authority oversees firm entry, ensures regulatory compliance,
and drives long-term park development.
Multi-tenant
clusters- Multiple firms operate within the park, collaborate, share resources,
and enhance productivity through agglomeration and clustering effects.
Industrial
Parks Fuelling EconomicEvolution:
Economic
efficiency - Industrial parks integrate scarce factors of production within
defined geographic zones, generating higher productivity and operational
efficiency.
Employment and
skills development - They create jobs, improve wages, and strengthen
the local talent base.
Capital and
technology attraction - Parks draw investment and advanced technologies
while enabling technology and managerial knowledge transfer.
Industrial
upgrading and competitiveness - Clustered industrial activity stimulates
upgrading, enhances national competitiveness, and deepens global value chain
integration.
Policy
incentives - Local, provincial, and national policies accelerate industrial growth
and reinforce the gains generated by parks.
Urban and
regional development - Industrial parks act as catalysts for economic
expansion and sustainable progress in host cities and regions.
Planning and Establishment of Industrial
Parks
The
incorporation of Industrial Parks is undertaken based on a business case that
outlines the need for serviced industrial land and the anticipated economic and
developmental benefits upon project completion. Following the preparation of
the business case, pre-feasibility studies are carried out to evaluate
potential sites for establishing an Industrial Park. These studies assess market
suitability, connectivity to transport networks, availability of
power and water, and overall cost viability. They also identify the sectoral
opportunities likely to be attracted to the proposed park through an
analysis of sector competitiveness, estimates of investment and
industrial land demand, infrastructure and service requirements, and
the expected scale of project costs and revenues. Subsequent assessments
include financial analysis, policy analysis and stakeholder mapping,
safeguards review, and economic impact projections. A final
decision to establish and finance an Industrial Park is taken only after a
comprehensive, site-specific feasibility study is completed, with
conclusions that clearly support project viability.
Government Initiatives Revitalizing the
Industrial Parks' Ecosystem
Several
initiatives and platforms are shaping India’s industrial parks' growth and
streamlining land access, accelerating industrial development, and supporting
investor decision-making.
Plug-And-Play
Industrial Parks
In the Union
Budget 2025-26, Rs. 2,500 crores have been allocated for the development of plug-and-play
industrial parks. By providing infrastructure that is precision-designed to
industry needs, the plug-and-play parks enhance operational efficiency and
sustainability.
There are
currently 306 plug-and-play industrial parks in India, and an additional
20 plug-and-play industrial parks and smart cities are being developed under
the National Industrial Corridor Development Corporation (NICDC). Four projects
have been completed, four are currently under construction, while the rest are
advancing through different phases of bidding and tendering.
India
Industrial Land Bank (IILB):
The Department
for Promotion of Industry and Internal Trade (DPIIT) developed the India
Industrial Land Bank (IILB), a centralized Geographic Information System
(GIS)-enabled platform that offers up-to-date, spatial and non-spatial
information on industrial land across the country.
Formerly known
as the Industrial Information System, the IILB serves as a one-stop repository
for 4,523 industrial parks, mapped across a total area of approximately 7.70
lakh hectares. Of this, nearly 1.35 lakh hectares of land is
currently available for industrial development. These parks collectively
comprise more than 6.45 lakh plots, with over 1.25 lakh plots
currently vacant (as on 23rd December, 2025), presenting significant
opportunities for new investments in manufacturing, logistics, and allied sectors.
Overview of
Industrial Parks and Associated Land Area Across Indian States and UTs (as on
23rd December, 2025):
|
State |
No. of
Industrial Parks |
Total
Land Area (Hectares) |
Land
Available (Hectares) |
|
Andaman
& Nicobar |
6 |
35 |
8 |
|
Andhra
Pradesh |
638 |
110595 |
10747 |
|
Arunachal
Pradesh |
18 |
741 |
248 |
|
Assam |
56 |
43497 |
486 |
|
Bihar |
82 |
4139 |
649 |
|
Chandigarh |
7 |
352 |
32 |
|
Chhattisgarh |
114 |
22972 |
2574 |
|
Dadra
& Nagar Haveli |
5 |
119 |
50 |
|
Daman
& Diu |
5 |
57 |
0 |
|
Delhi |
68 |
7017 |
976 |
|
Goa |
22 |
1699 |
102 |
|
Gujarat |
285 |
193975 |
12605 |
|
Haryana |
51 |
9597 |
11661 |
|
Himachal
Pradesh |
64 |
960 |
185 |
|
Jammu
& Kashmir |
137 |
2841 |
264 |
|
Jharkhand |
158 |
8194 |
1734 |
|
Karnataka |
384 |
35910 |
3568 |
|
Kerala |
140 |
6658 |
1292 |
|
Ladakh
UT |
8 |
33 |
2 |
|
Lakshadweep |
9 |
2 |
1 |
|
Madhya
Pradesh |
144 |
23217 |
2916 |
|
Maharashtra |
523 |
81308 |
19658 |
|
Manipur |
7 |
36 |
13 |
|
Meghalaya |
9 |
235 |
5 |
|
Mizoram |
8 |
381 |
240 |
|
Nagaland |
6 |
282 |
19 |
|
Odisha |
146 |
72600 |
2744 |
|
Puducherry |
11 |
658 |
0 |
|
Punjab |
100 |
6331 |
2008 |
|
Rajasthan |
420 |
33578 |
11655 |
|
Sikkim |
5 |
20 |
3 |
|
Tamil
Nadu |
372 |
30772 |
16291 |
|
Telangana |
157 |
32033 |
30749 |
|
Tripura |
20 |
1828 |
623 |
|
Uttar
Pradesh |
286 |
33327 |
1320 |
|
Uttarakhand |
35 |
3814 |
332 |
|
West
Bengal |
17 |
490 |
61 |
|
Grand
Total |
4523 |
770303 |
135821 |
Source: India Industrial Land Bank (IILB), Department for Promotion of Industry
and Internal Trade, Ministry of Commerce and Industry, Government of India
Industrial
Park Rating System (IPRS):
The Industrial
Park Rating System (IPRS) is a comprehensive framework for assessing the
performance and quality of industrial parks and business districts in India.
Built on four assessment pillars, it provides valuable insights to investors,
developers, and policymakers while encouraging park authorities to improve
services and infrastructure. By promoting continuous improvement, the IPRS
drives innovation, efficiency, sustainability, and ease of doing business. Its
feedback reports serve as actionable roadmaps for infrastructure upgrades and
service enhancement, while its collaborative approach promotes knowledge
sharing and sector-wide growth beyond conventional rankings.
According to
the IPRS 2.0 Top Rated Parks Report, a total of 41 industrial parks
have been classified under the ‘Leaders’ category, representing
high-performing parks with strong infrastructure, resilient industrial
activity, and a well-established mix of sector-specific and multi-sector
facilities. Further, 90 industrial parks have been identified as
‘Challengers’, representing parks that have shown substantial growth
momentum. These parks display improving infrastructure and operational
performance and are well-positioned to advance into the top tier with focused
development initiatives. In addition, 185 industrial parks have been
recognised as ‘Aspirers’, indicating parks that hold significant potential
for future development. These parks are in earlier stages of growth and stand
to benefit from targeted support to strengthen their infrastructure, services,
and operational maturity. These rankings, based on key performance indicators,
provide investors with transparent insights, promote healthy competition among
States and Union Territories, and support evidence-based policymaking.
In September
2025, the Industrial Park Rating System (IPRS) 3.0 was launched to
further strengthen India’s industrial ecosystem and enhance the competitiveness
of its infrastructure. Building on the pilot phase (2018) and IPRS 2.0 (2021),
this edition features an expanded framework with new parameters such as
sustainability, green infrastructure, logistics connectivity, digitalization,
skill linkages, and tenant feedback.
Ease of Doing
Business Reforms:
India has
strengthened the ease of doing business by supporting domestic and
international investors, with industrial parks becoming central to attracting
investment and meeting large-scale employment needs, as improved internal
infrastructure has raised occupancy rates and stimulated economic growth.
Investors can
remotely evaluate suitable land parcels using detailed information on
infrastructure, connectivity, business support services, and environmental and
safety standards, thereby enabling well-informed investment decisions.
·
National Business Reforms Action Plan (BRAP), 2014 - Accelerated
improvements across key reform areas, including Information Wizard, Single
Window Systems, Online Building Permission System, Inspection Reforms, and
Labour Reforms.
·
One District One Product (ODOP) initiative - Promoted district-specific
products and strengthened local enterprises across the country.
·
Goods and Services Tax (GST) - Unified
multiple indirect taxes, such as excise duty and service tax, into a
streamlined and transparent national tax framework.
·
Startup India - Under the Startup India
initiative, eligible companies can obtain DPIIT recognition to access a host of
benefits, including tax incentives, simplified compliance, and fast-tracking of
Intellectual Property Rights (IPR)-related processes.
·
Remission of Duties and Taxes on Exported Products
(RoDTEP) scheme - Encouraged entrepreneurship and enhanced the
attractiveness and competitiveness of Indian exports.
·
Compliance and legal burden reduction -
Decriminalised 3,700 legal provisions and reduced more than 42,000 compliances
to build a predictable, transparent, and business-friendly regulatory
landscape.
Industrial Parks as Engines of FDI
India ranks
among the world’s top 5 destinations for international project finance deals
and Greenfield Project Investments, according to the United Nations Conference on
Trade and Development (UNCTAD) 2025 World Investment Report. Foreign Direct
Investment (FDI) inflows have continued on a mounting trajectory. During the
April-August 2025-26, total FDI inflows reached USD 43.76 billion
(provisional), compared with USD 37.03 billion in the corresponding period of
FY 2024-25.
Industrial
parks play a critical role in stimulating a country’s economic development by
attracting FDIs and domestic capital, enhancing industrial performance,
strengthening value chains, and expanding employment opportunities. They also
support export-led growth and improve enterprise capabilities by enabling
knowledge exchange and technology diffusion.
Enhanced FDI
strengthens the development of industrial parks that align with national
strategies. Supported by comprehensive feasibility studies and enabling policies,
these platforms are significantly enhancing the investment environment,
deepening regional value chains, and attracting higher levels of foreign
capital.
Conclusion
India’s
evolving industrial policy landscape embodies a decisive transition
towards industrial promotion, with industrial parksplaced at the
forefront of this evolution. Their planned design, shared
infrastructure, and coordinated governance structure create
afacilitating environment that strengthens productivity, technology
transfer, and employment generation.
To reinforce
this accelerating trajectory, the Government of India has prioritised the
development of plug-and-play industrial parks, enhanced digital land
access systems through the India Industrial Land Bank (IILB), and
institutionalised quality benchmarksthrough the Industrial Park
Rating System (IPRS), affirming a sustained commitment to industrial
excellence. Complemented by wide-ranging ease of doing business reforms
and a predictable regulatory climate, these initiatives have
significantly motivated investor confidence and expanded opportunities
for domestic and foreign investment.
As India’s
industrial parks increasingly align with global best practices and sustainability
standards, they are expected to fortify regional value chains and
integrate India more competitively into global manufacturing networks.
At the same time, the Government recognises that the global industrial
landscape is evolving with intensifying competition for FDI, and a
worldwide shift toward a circular and green economy. Remaining relevant
in this environment, India’s industrial parks are continuously upgrading their infrastructure,
services, and market offerings.
Through these
concerted measures, the Government of India is carving an industrial
ecosystem that is inclusive and globally recognised. The
Government remains firmly committed to ensuring that industrial parks evolve in
step with international standards, advocate sustainability-driven
growth, and emerge as enduring engines of industrial prowess and economic
strength.