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Industrial Corridors Drive India’s Manufacturing Push

RR Team, February 26, 2026February 27, 2026
India’s push to become a global manufacturing powerhouse received fresh momentum in the Union Budget 2026-27, with the announcement of an integrated East Coast Industrial Corridor featuring a key node at Durgapur. The government has also allocated ₹3,000 crore to the National Industrial Corridor Development and Implementation Trust (NICDIT), reinforcing its commitment to corridor-led industrialisation.
These measures build upon the National Industrial Corridor Development Programme (NICDP), under which multiple industrial corridors are being developed across the country to integrate manufacturing hubs with multimodal connectivity and plug-and-play infrastructure.

Why Industrial Corridors Matter

Industrial corridors are structured development zones aligned along major transport routes such as highways and dedicated freight corridors. They connect industrial clusters with ports, airports and markets, reducing logistics costs and improving efficiency.

By combining modern infrastructure, reliable utilities and technology-enabled governance, these corridors create business-friendly ecosystems. Industries benefit from ready-to-use land parcels, faster approvals and seamless connectivity, enabling quicker operationalisation.

The corridors also focus on sustainability through renewable energy integration, water recycling systems and green spaces. Skill development programmes and walk-to-work urban planning further strengthen employment generation and quality of life.

Progress Across 11 Industrial Corridors

At present, projects are under implementation across 11 industrial corridors, including the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC), Amritsar-Kolkata Industrial Corridor (AKIC), Vizag-Chennai Industrial Corridor (VCIC), and others.

Four projects have already been completed, while four more are nearing completion. Among the major operational nodes under DMIC are the Dholera Special Investment Region in Gujarat, Shendra-Bidkin Industrial Area in Maharashtra, Integrated Industrial Township at Greater Noida in Uttar Pradesh, and Vikram Udyogpuri in Madhya Pradesh.

These projects offer world-class trunk infrastructure, including roads, power supply, water systems and logistics hubs. According to official data, Phase-I cities under the programme have collectively allotted hundreds of industrial plots and attracted investments exceeding ₹2 lakh crore across sectors such as electronics, electric vehicles, renewables and pharmaceuticals.

12 New Smart Industrial Projects Approved

In a significant expansion, the government approved 12 additional projects in August 2024 under NICDP, with a total estimated cost of ₹28,602 crore. Spread across nearly 26,000 acres, these smart industrial cities aim to create globally benchmarked manufacturing hubs.

The projects span states such as Uttarakhand, Punjab, Haryana, Uttar Pradesh, Bihar, Maharashtra, Rajasthan, Andhra Pradesh, Telangana and Kerala. Together, they are projected to generate investment potential exceeding ₹1.5 lakh crore and create more than nine lakh jobs.

Each project integrates smart city planning, multimodal logistics, sustainable infrastructure and plug-and-play facilities to ensure demand-driven and future-ready development.

Institutional Backbone: NICDC and NICDIT

The National Industrial Corridor Development Corporation Limited (NICDC), incorporated in 2008, serves as the central coordinating agency for planning and executing corridor projects. It focuses on building smart cities, logistics hubs and integrated manufacturing clusters that combine industrial growth with modern urban living.

Complementing this, NICDIT reconstituted in 2016 acts as a financial and implementation trust supporting corridor-level infrastructure. The ₹3,000 crore allocation in Budget 2026-27 underscores the government’s sustained financial backing.

These institutional mechanisms ensure coordinated action between the Centre and states, guided by the PM GatiShakti framework for integrated infrastructure planning.

East Coast Corridor: A Strategic Addition

The newly announced East Coast Industrial Corridor, anchored by Durgapur, is expected to strengthen eastern India’s industrial base. By enhancing connectivity and creating new manufacturing nodes, the corridor aims to balance regional development while integrating India more deeply into global value chains.

With development progressing across operational, near-completion and newly approved projects, India’s industrial corridors are steadily reshaping the country’s manufacturing landscape.

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