Industrial Parks Driving India’s Industrial Transformation

According to recent official data, industrial parks are becoming central to India’s strategy for industrial development and innovation. 

India’s Industrial Land Bank

• The government has systematically mapped the nation’s industrial infrastructure to provide clarity and ease of access for investors.
• Extensive Network: India currently has over 4,500 industrial parks listed on the India Industrial Land Bank (IILB).
• • Industrial parks currently cover a massive area of approximately 7.7 lakh hectares.
• Available Land: Within this mapped area, nearly 1.35 lakh hectares of land is still available for new industrial projects, showcasing significant room for expansion.
• Specialized Parks: The ecosystem includes 306 “plug-and-play” industrial parks (offering ready-to-use facilities) and 20 major park and smart city projects being developed under the National Industrial Corridor Development Corporation (NICDC).

What is an Industrial Park?

• An industrial park is a planned and demarcated zone developed specifically for industrial use.
• Industrial Parks are designed to provide smarter infrastructure, promote sustainable practices, and drive stronger industrial growth across the country.

Key features of Industrial Parks

• Common Facilities: Reliable utilities (power, water), internal roads, waste management, security, labs, and logistics services.
• Streamlined Management: Each park is overseen by a dedicated management authority that handles compliance, facilitates new firm entry, and plans for long-term development.
• Business-Friendly Environment: These parks offer a predictable regulatory framework and often benefit from single-window clearance systems.

Driving Economic and Sustainable Growth

Industrial parks serve a multi-faceted role in India’s development agenda.

• Economic Catalysts:
  • Attracting Investment: They are key to bolstering India’s manufacturing base by drawing in both domestic and foreign capital.
  • Job Creation: The concentration of industries generates large-scale employment opportunities.
  • FDI Magnet: India ranks among the top five global destinations for Greenfield investments, with industrial parks being a major draw. 
    • FDI inflows for April-August 2025-26 stood at a provisional $43.76 billion.
• Models of Sustainability: Modern industrial parks are designed with responsibility in mind:
  • Environmental Compliance: Authorities enforce norms, promote resource efficiency, monitor emissions, and protect local biodiversity.
  • Inclusive Development: Planning includes social infrastructure, worker safety protocols, gender-sensitive facilities, and community engagement programs.

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Government Initiatives & Future Focus

• Plug-and-Play Parks: A priority for faster development. 
  • Plug-and-Play Industrial Parks are factory-ready industrial zones where essential infrastructure like land, power, water, roads, and utilities is pre-developed. 
  • This allows companies to start operations immediately without lengthy groundwork, dramatically reducing their setup time and cost.
  • The Union Budget 2025-26 allocated ₹2,500 crore specifically for creating these parks with ready-to-use, customized infrastructure.
• National Industrial Corridor Development Corporation Projects: Of the 20 major corridor projects, 4 are complete, 4 are under construction, and the rest are in various stages of planning and tendering.
• Industrial Park Rating System (IPRS): This system benchmarks park quality. 
  • Under IPRS 2.0, parks are rated as Leaders, Challengers, or Aspirers. 
  • IPRS 3.0, launched in 2025, expands criteria to include sustainability, digitalisation, and tenant feedback.
• Digital Access – The IILB Portal: Developed by the Department for Promotion of Industry and Internal Trade (DPIIT), this Geographic Information System (GIS) platform is a one-stop shop for real-time information on industrial land.

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