By Visvalingam Muralithas –

Visvalingam Muralithas

India is set to take a major step forward in its industrial transformation, with groundwork scheduled to begin on 11 of the 12 planned smart industrial cities by December 2025. The ambitious initiative—spanning 10 states, covering nearly 26,000 acres of prepared land, and involving an estimated investment of ₹28,602 crore (approximately $3.5 billion)—marks a new phase of intelligent, future-ready industrialisation. Beyond modern infrastructure, the project aims to deliver a powerful economic stimulus driven by innovation, sustainability, and global competitiveness.

The vision behind the 12 smart industrial cities is to create manufacturing and logistics hubs capable of competing with the world’s leading industrial ecosystems, while providing Indian enterprises with world-class facilities and seamless connectivity.

According to Rajat Kumar Saini, Managing Director and CEO of the National Industrial Corridor Development Corporation (NICDC), contracts for four industrial parks have already been awarded, with EPC (Engineering, Procurement and Construction) contractors in place. Contracts for four more parks are expected to be finalised shortly. Construction on eight parks is scheduled to begin by November 30, followed by the remaining three by December 31, 2025.

A notable strength of the project has been the extensive preparatory work. All land required for the 12 cities was acquired prior to Union Cabinet approval in August 2024, enabling swift execution once formal clearance was granted—an uncommon achievement for projects of this scale.

Each industrial city operates under a clear governance framework, with dedicated land-allotment policies, individual managing directors, and independent special purpose vehicles (SPVs) overseeing planning and development. This decentralised approach allows each park to align with sector-specific needs and regional strengths.

The 12 smart industrial cities are expected to attract investments of around ₹1.5 lakh crore ($20 billion) and generate nearly 10 lakh direct jobs and 30 lakh indirect jobs. Investor interest is already strong, with land allocation processes underway across multiple sectors.

Once core infrastructure—roads, utilities, power supply, digital networks, logistics facilities, and common amenities—is completed, industries will be able to establish manufacturing units without delay. Sector-focused planning, including dedicated zones for foreign investors, further strengthens the initiative’s global outlook. In Tumakuru, Karnataka, for example, 300 acres have been reserved exclusively for Japanese companies.

The new cities will expand India’s growing network of smart industrial hubs, joining operational centres such as Dholera, Shendra-Bidkin, Greater Noida, and Vikram Udyogpuri. With additional projects under development, India is on track to establish 20 smart industrial cities nationwide.

Strategically located along key industrial corridors—including the Delhi–Mumbai, Amritsar–Kolkata, Vizag–Chennai, and Chennai–Bengaluru corridors—the cities will enjoy seamless connectivity to ports, highways, and global supply chains.

More than an infrastructure programme, the smart industrial city initiative reflects India’s long-term development strategy. It underscores confidence in the country’s industrial capacity, commitment to sustainability and technology, and determination to create large-scale employment and balanced regional growth.

With construction set to begin by the end of 2025, the coming years are expected to witness rapid transformation across these corridors—positioning India as an increasingly preferred destination for global manufacturing and investment.

*Visvalingam Muralithas is a researcher in the legislative sector, specializing in policy analysis and economic research. He is currently pursuing a PhD in Economics at the University of Colombo, with a research focus on governance, development, and sustainable growth.