Key Manufacturing Clusters in India: A Sector-Wise Breakdown
India boasts a variety of manufacturing clusters, each specializing in distinct sectors, contributing significantly to domestic production and exports.
Supported by various central government schemes and the rapid infrastructure improvements, these clusters are key to India’s rise as a global manufacturing hub.
Industrial clusters in India
India has emerged as a global manufacturing hub due to its large, skilled labor force, improving infrastructure, and favorable government policies like the Make in India initiative and Production-Linked Incentives program.
India’s manufacturing clusters, spread across its states, showcase the country’s industrial diversity and global competitiveness. From automobiles and textiles to pharmaceuticals and electronics, each cluster contributes significantly to India’s economy, creating jobs, driving exports, and attracting foreign direct investment. With continuous infrastructure improvements and policy support, these clusters are poised to strengthen India’s position as a global manufacturing hub.
Automotive industry
India’s automotive manufacturing capacity includes passenger vehicles, commercial vehicles, two-wheelers, and auto components. The country is a prominent exporter of small cars and auto components, with significant markets in Europe, Africa, and Latin America.
Key clusters:
- Chennai (Tamil Nadu): Often referred to as the “Detroit of India,” Chennai houses major global automotive manufacturers such as Ford, Hyundai, BMW, and domestic giants like Ashok Leyland. The region is also known for its extensive auto component manufacturing.
- Pune (Maharashtra): A major automotive hub with manufacturers like Tata Motors, Mercedes-Benz, and Bajaj Auto, Pune also focuses on the production of components and engineering services.
- Gurugram-Manesar (Haryana): Home to Maruti Suzuki and Hero MotoCorp, this cluster has evolved into a significant automotive manufacturing base, including auto parts and engineering facilities.
- Sanand (Gujarat): The Sanand Industrial Estate is notable for the Tata Nano plant and hosted number of international automotive companies, such as Ford. Ford Motors, however, discontinued its sales and manufacturing operations in India in 2020.
State |
Location |
Automobile manufacturer |
Andhra Pradesh |
Sri City
Satyavedu Vijayawada
Penukonda |
Isuzu Motors India Kobelco Hero Motor Corp. Ashok Lyland Ltd. AVERA New and Renewable Energy Kia Motors |
Telangana |
Zahirabad |
Deccan Auto Mahindra & Mahindra |
Haryana |
Dharuhera Gurgaon
Faridabad
Manesar |
Hero Moto Corp Hero Moto Corp Suzuki Motorcycle India Limited India Yamaha Motor Escorts Tractors JCB Maruti Suzuki Honda Motorcycle Maruti Suzuki |
Himachal Pradesh |
Nlagar Amb Parwanoo |
TVS Motors International Cars and Motors TAFE Tractors |
Kerala |
– |
– |
Madhya Pradesh |
Pithampur
Mandideep |
Mahindra Two-wheelers Eicher Motors Hindustan Motors CNH Industrial TAFE Tractors |
Punjab |
Nawanshahar Hoshiarpur Mohali Morinda Patiala Barnala Nabha |
SML Isuzu Limited International Tractors Limited Punjab Tractor Motors Limited Class India Limited John Deere India Limited Standard Tractors Limited Preet Tractors Limited |
Rajasthan |
Tapukara
Alwar
Neemrana
Jaipur |
Honda Cars India Honda Motorcycle and Scooters Ashok Leyland Limited TAFE Tractors Hero Motocorp + Harley Davidson Mahindra & Mahindra |
Uttar Pradesh |
Lucknow Greater Noida |
Tata Motors Honda Cars India New Holland Agriculture India Yamaha Motors Honda Cars India |
Uttarakhand |
Haridwar
Pantnagar |
Hero MotorCorp Mahindra & Mahindra Bajaj Auto Ashok Leyland Tata Motors |
Karnataka |
Mysore Kolar
Bengaluru
Bidadi
Doddaballapura Dharwad Hoskote
|
TVS Motors Honda Motorcycle and Scooters Scania Commercial Vehicles Toyota Kirloskar Motor Private Limited Mahindra Reva Toyota Kirloskar Motor Private Limited TAFE Tractors Tata Motors Volvo Buses India Private Limited |
Tamil Nadu |
Hosur
Chennai
Kanchipuram Vellore Oragadam Thiruvallur
Avadi Ambattur Ranipet Ennore Kalladipatti |
TVS Motors Ashok Leyland Kamaz Vectra Motors Limited Royal Enfield India Yamaha Motor Daimler Bharat Benz Motorrad Force Motors Wright Bus Isuzu Schwing Stetter Komatsu TAFE Tractors Mahindra & Mahindra SAME Deutz-Fahr Royal Enfield Royal Enfield Mitsubishi Heavy Vehicles Factory TI Cycles Bavina Cars Ashok Leyland TAFE Tractors |
West Bengal |
Hindmotor Kharagpur |
Hindustan Motors Tata Motors |
Gujarat |
Dalotporda Halol Sanand Bhuj |
VR Motors SAIC Motors India Tata Motors Asian Motorworks |
Maharashtra |
Baramati Pune Ahmadnagar, Pune Ranjangaon Nashik Chakan
Aurangabad Kandivali Talegaon Pargaon Sanaswadi Wai Pimpri Navi Mumbai Alibaug Banda Thane |
Piaggio, Vespa, Aprillia General Motors MV Agusta Tata Motors Mahindra & Mahindra Mahindra, Ssangyong Bajaj Auto India Kawasaki Motors Sany India Hyundai Construction Equipment JCB Vedant Cranes John Deere Hyosung, Benelli Premier Leibherr Chinkara Motors Premier Eicher Motors Chinkara Motors Caterpillar Eicher Motors |
Source: Scribd
Textiles and apparel
India’s textile and apparel production capacity encompasses cotton and synthetic textiles, knitwear, woolen apparel, and home textiles. As one of the world’s largest exporters in this sector, India experiences strong demand from markets in the U.S., Europe, and the Middle East.
Key clusters:
- Tiruppur (Tamil Nadu): Known as the “Knitwear Capital of India,” Tiruppur specializes in knitted garments, particularly cotton-based products. It is a major export hub for textiles, serving markets in Europe and the U.S.
- Ludhiana (Punjab): This city is famous for its woolen apparel and knitwear, producing a large volume of winter wear for domestic and international markets.
- Surat (Gujarat): A prominent textile cluster, Surat specializes in synthetic textiles and is one of the largest centers for the production and processing of polyester fabrics in India.
- Bhiwandi (Maharashtra): Known for its power loom industry, Bhiwandi is a major player in producing synthetic and cotton fabrics.
1. Textile Parks under SITP |
|||
S.No. |
Name of Park |
Location |
State |
1 |
Brandix India Apparel City Private Limited |
Vishakhapatnam |
Andhra Pradesh |
2 |
Hindupur Vyapar Apparel Park Limited |
Ananthpur |
|
3 |
MAS Fabric (India) Park Ltd |
Nellore |
|
4 |
Guntur Textile Park |
Guntur |
|
5 |
Rangaraya Textile Park, Godavari |
West Godavari |
|
6 |
Tareshkewara Textile Park Pvt. Ltd |
Nellore |
|
7 |
Goutham Budha Textile Park |
Guntur |
|
8 |
Prag Jyoti Textile Park |
Darrang |
Assam |
9 |
JVL Textile Park |
Rohtas |
Bihar |
10 |
Gujarat Eco Textile Park Limited |
Surat |
Gujarat |
11 |
Mundra SEZ Textile & Apparel Park Limited |
Kutch |
|
12 |
Fairdeal Textile Park Pvt. Ltd |
Surat |
|
13 |
Vraj Integrated Textile Park Limited |
Khed |
|
14 |
Sayana Textile Park Ltd |
Surat |
|
15 |
Surat Super Yarn Park Limited |
Surat |
|
16 |
RJD Integrated Textile Park |
Surat |
|
17 |
Kejriwal Integrated Textile Park Pvt. Ltd |
Surat |
|
18 |
Madhav Textile Park |
Surendrenagar |
|
19 |
Amitara Green Hi Tech Textile Park |
Kheda |
|
20 |
Palsana Textile Park |
Surat |
|
21 |
Shanti Textile Park Gujarat |
Surat |
|
22 |
NSP Infrastructure |
Surat |
|
23 |
Karnaj Integrated Textile Park |
Surat |
|
24 |
Aalishan Eco Textile Park Pvt. Ltd |
Panipat |
Haryana |
25 |
Himachal Textiles Park |
Una |
Himachal Pradesh |
26 |
Kashmir Wool and Silk Textile Park |
Ghatti |
J &K |
27 |
Jammu & Kashmir Integrated Textiles Park |
Kathua |
|
28 |
Doddabalapur Integrated Textile Park |
Doddabalapur |
Karnataka |
29 |
Gulbarga Textiles Park |
Gulbarga |
|
30 |
CLC Textile Park Pvt Ltd |
Chhindwara |
Madhya Pradesh |
31 |
Baramati Hi Tech Textile Park Limited |
Baramati |
Maharashtra |
32 |
Islampur Integrated Textile Park Pvt. Ltd |
Islampur |
|
33 |
Latur Integrated Textile Park Pvt. Ltd |
Latur |
|
34 |
Metro Hi-Tech Cooperative Park Limited |
Ichalkaranji |
|
35 |
Pride India cooperative Textile park Limited |
Ichalkaranji |
|
36 |
Purna Global Textile Park Ltd |
Hingoli |
|
37 |
Asiatic Cooperative Powerloom Textiles Park |
Solapur |
|
38 |
Deesan Infrastructure Pvt. Ltd |
Dhule |
|
39 |
Asmeeta Infratech Pvt. Ltd |
Bhiwandi |
|
40 |
Kallappana Awade Textiles Park, Kolhapur |
Ichalkaraji |
|
41 |
Khed Textile Park |
Pune |
|
42 |
Sundararao Solanke Cooperative Textile Park |
Beed |
|
43 |
Dhule Textile Park |
Dhule |
|
44 |
Satyaraj Integrated Textile Park |
Kolhapur |
|
45 |
Shree Ganesh Integrated Textile Park Pvt. Ltd |
Dhule |
|
46 |
Hinganghat Integrated Textile Park |
Vidharbha |
|
47 |
Lotus Integrated Tex Park |
Punjab |
Punjab |
48 |
Rhythm Textile & Apparel Park Ltd |
Nawanshahr |
|
49 |
Ludhiana Integrated Textile Park Ltd |
Ludhiana |
|
50 |
Progressive Integrated Textile Park |
Bhatinda |
|
51 |
Jaipur Integrated Texcraft Park Pvt. Ltd |
Bagru |
Rajasthan |
52 |
Jaipur Texweaving Park Limited |
Kishangarh |
|
53 |
Kishangarh Hi-Tech Textile Park Limited |
Kishangarh |
|
54 |
Next Gen Textile Park Pvt. Ltd |
Pali |
|
55 |
Jaipur Kaleen Park Ltd. |
Dausa |
|
56 |
Himmada Integrated Textiles Park |
Balotra |
|
57 |
Srinath Integrated Textile Park |
Bhilwara |
|
58 |
Palladam Hi-Tech Weaving park |
Palladam |
Tamil Nadu |
59 |
Karur Integrated Textile Park |
Karur |
|
60 |
Madurai Integrated Textile Park Ltd |
Madurai |
|
61 |
The Great Indian Linen & Textile Infrastructure Company |
Perundurai |
|
62 |
SIMA Textile Processing Centre |
Cuddalore |
|
63 |
Komarapalayam Hi-Tech Weaving Park Ltd. |
Komarapalayam |
|
64 |
Kanchipuram Arigrar Anna Handloom Park |
Kanchipuram |
|
65 |
SLS Textile Park |
Hosur |
|
66 |
Pallavada Technical Textiles Park Ltd. |
Erode |
|
67 |
Pochampally Handloom Park Limited |
Pochampally |
Telangana Telangana |
68 |
Whitegold Integrated Spintex Park |
Ranga Reddy District |
|
69 |
Avantika Textile Park |
Medak |
|
70 |
Ecotex Textile and apparel park Pvt. ltd |
Mirganj |
Uttar Pradesh |
71 |
Sri Lakshmi Textile Park |
Kanpur |
|
72 |
Farrukhabad Textile Park Pvt. Ltd. |
Farrukhabad |
|
73 |
EIGMEF Apparel Park Limited |
Kolkata |
West Bengal |
74 |
Hosiery Park |
Howrah |
Source: Ministry of Textile
Pharmaceuticals and biotech
India’s pharmaceutical industry presents investment opportunities in producing APIs, biosimilars, vaccines, nutraceuticals, as well as food and drug testing and contract research. India stands as the world’s largest producer of generic drugs, supplying significant markets in the U.S., Europe, and Africa. Emerging areas include focus on delivering complex solutions, including molecule generation, synthesis of active ingredients, preclinical studies, pharmaceutical production technology, clinical trials, and the experimental production of pharmaceutical products.
Key clusters:
Maharashtra, Gujarat, Andhra Pradesh, Himachal Pradesh, Rajasthan, Telangana, Uttar Pradesh, Goa, Karnataka, Tamil Nadu, Haryana, Uttarakhand host the major pharmaceutical manufacturing clusters in the country.
- Hyderabad (Telangana): Referred to as “Genome Valley,” Hyderabad is a leading hub for pharmaceutical manufacturing and biotech research. Major companies like Dr. Reddy’s Laboratories and Aurobindo Pharma are based here.
- Ahmedabad (Gujarat): Ahmedabad is home to major pharmaceutical companies such as Zydus Cadila and Torrent Pharma. It also focuses on bulk drug manufacturing.
- Mumbai (Maharashtra): The pharmaceutical and biotech cluster in Mumbai houses both large companies like Lupin and Sun Pharmaceuticals and many smaller firms involved in formulation development.
Electronics and IT hardware
India’s electronics and IT hardware industry encompasses the production of smartphones, consumer electronics, telecom equipment, and IT hardware. The country is gradually establishing itself as a key exporter in this sector, particularly focusing on mobile phones, IT hardware, and electronic components. Various policies like the PLI Scheme and Electronics Manufacturing Cluster 2.0 Scheme support investments in this area.
Key clusters:
- Bengaluru (Karnataka): Known primarily for its IT industry, Bengaluru has also emerged as a significant hub for electronics manufacturing, particularly in semiconductors and embedded systems.
- Noida (Uttar Pradesh): Noida has become a key center for consumer electronics manufacturing, with global giants like Samsung and Oppo setting up major facilities.
- Sriperumbudur (Tamil Nadu): This cluster is home to major electronics manufacturing, including Foxconn and Flextronics, which produce smartphones and other consumer electronics for brands like Apple and Xiaomi.
- Chennai (Tamil Nadu): Chennai is another important hub for electronics, including telecom equipment and consumer electronics.
Electronics Manufacturing Cluster 2.0 (Approved Projects)
S.No. |
PIA Name |
Location |
Area |
Approved Date |
1 |
Karnataka Industrial Areas Development Board (KIADB) |
Kotur & Belur (V), Dharwad (T) |
224.50 Acres |
23.03.2023 |
2 |
Maharashtra Industrial Development Corporation (MIDC) |
Village Shirur & Village Karde Pune district, Maharashtra |
297.11 Acres |
31.10.2022 |
3 |
Telangana State Industrial Infrastructure Corporation Limited (TSIIC) |
Divitipally, Mahabubnagar, Telangana State |
377.65 Acres |
29.08.2024 |
4 |
State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIIDCUL) |
SIIDCUL Integrated Industrial Estate, Kashipur, Opposite IIM Kashipur Campus, |
133.82 Acres |
28.04.2023 |
5 |
Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) |
Ambavaram (V), Vallur (M); Kopparthy (V), C.K.Dinne (M) and Rampathadu (V), Pendlimarry (M) |
540.00 Acres |
18.03.2021 |
6 |
Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) |
Industrial Model Township, Sohna (Haryana) |
500.00 Acres |
30.09.2021 |
Source: Ministry of Electronics and Information Technology
State |
Location |
Project Name |
Area (In acres) |
Date of Final Approval |
|
1 |
Andhra Pradesh |
Sathyavedu Mandal, Chittoor |
EMC at Satyavedu Mandal, Sri City, A.P (M/s. Sri City Pvt. Ltd.) |
94.00 |
20-Jul-2016 |
2 |
Andhra Pradesh |
Tirupati |
EMC-I at Tirupathi, A.P (M/s. Andhra Pradesh Industrial Infrastructure Corporation) |
113.27 |
07-Dec-2017 |
3 |
Andhra Pradesh |
Yerpedu Mandal, Chittoor |
EMC-II at Vikruthamala, Tirupathi, A.P (M/s. A.P. Industrial Infrastructure Corporation-APIIC) |
501.40 |
02-Aug-2017 |
4 |
Assam |
Kamrup |
EMC at Bongora, Assam (M/s. Assam Electronics Development Corporation Ltd.-AMTRON) |
100.00 |
01-Feb-2018 |
5 |
Chhattisgarh |
Raipur |
EMC at Naya Raipur, Chhattisgarh (M/s. Chhattisgarh State Industrial Development Corporation Ltd.-CSIDC) |
116.48 |
07-Jan-2016 |
6 |
Goa |
North-Goa |
EMC at Tuem, Pernem, Goa (DoIT, Government of Goa) |
147.55 |
03-Mar-2017 |
7 |
Gujrat |
Kutch |
EMC at Mundra, Gujarat (M/s. Mundra Solar Technopark Private Limited-MSTPL) |
631.38 |
04-Jul-2016 |
8 |
Jharkhand |
Saraikela-Kharsawan |
EMC at Adityapur, Jharkhand (M/s. Adityapur Industrial Area Development Authority -AIADA) |
82.49 |
22-Sep-2015 |
9 |
Karnataka |
Mysore |
CFC at Mysore, Karnataka (M/s. Mysore ESDM Cluster) |
1.50 |
15-Sep-2015 |
10 |
Kerala |
Ernakulam |
EMC at Kakkanad, Kerala (M/s. Kerala Industrial Infrastructure Development Corporation -KINFRA) |
66.87 |
24-Aug-2016 |
11 |
Madhya Pradesh |
Bhopal |
EMC at Badwai-Bhopal, M.P. (M/s. Madhya Pradesh State Electronics Development Corporation Ltd.-MPSEDC) |
50.00 |
25-Aug-2014 |
12 |
Madhya Pradesh |
Jabalpur |
EMC at Purva-Jabalpur, M.P (M/s. Madhya Pradesh State Electronics Development Corporation Ltd.-MPSEDC) |
40.00 |
25-Aug-2014 |
13 |
Maharashtra |
Aurangabad |
CFC at Aurangabad, Maharashtra (M/s. Deogiri Electronics Cluster Pvt. Ltd.-DECPL) |
1.98 |
03-Mar-2017 |
14 |
Maharashtra |
Pune |
CFC at Pune, Maharashtra (M/s. MCCIA Electronic Cluster Foundation-MECF) |
0.61 |
13-Dec-2017 |
15 |
Orissa |
Khurda |
EMC at Bhubaneswar, Odisha (M/s Odisha Industrial Infrastructure Development Corporation-IDCO) |
203.37 |
05-Sep-2016 |
16 |
Rajasthan |
Alwar |
EMC at Karoli IA,Rajasthan (M/s. Rajasthan State Industrial Development & Investment Corporation Ltd.-RIICO) |
121.51 |
15-Dec-2017 |
17 |
Rajasthan |
Bhiwadi |
EMC at Salarpur IA, Rajasthan (M/s. ELCINA Electronics Manufacturing Cluster Pvt. Ltd.-EEMCPL) |
50.34 |
15-Sep-2015 |
18 |
Telangana |
Hyderabad |
EMC at Hyderabad,Telangana (M/s. Telangana State Industrial Infrastructure Corporation Ltd.-TSIIC) |
603.52 |
02-Aug-2017 |
19 |
Telangana |
Ranga Reddy |
EMC at Maheshwaram,Telangana (M/s.Telangana State Industrial Infrastructure Corporation Ltd.-TSIIC) |
310.70 |
08-Aug-2017 |
20 |
Uttar Pradesh |
Greater Noida |
EMC at Greater Noida, UP (M/s. TEGNA Electronics Pvt. Ltd.-TEPL) |
99.41 |
21-Feb-2018 |
21 |
West Bengal |
South 24 Parganas |
EMC at Falta,West Bengal (M/s. West Bengal Electronics Industry Development Corporation Ltd.-WEBEL) |
58.04 |
04-Feb-2016 |
22 |
West Bengal |
North 24 Parganas |
EMC at Naihati, West Bengal (M/s. West Bengal Electronics Industry Development Corporation Ltd.-WEBEL) |
70.00 |
21-Aug-2016 |
Source: Ministry of Electronics and Information Technology
Chemicals and petrochemicals
India’s industrial capacity in this sector includes the production of organic and inorganic chemicals, petrochemicals, specialty chemicals, and plastics. The country is a leading exporter of chemicals and petrochemical products, serving markets in Asia, Europe, and North America.
Key clusters:
- Vadodara and Jamnagar (Gujarat): Gujarat is the epicenter of India’s chemicals and petrochemicals industry, with large refineries, petrochemical plants, and chemical manufacturing units. Jamnagar hosts the world’s largest oil refinery complex, operated by Reliance Industries.
- Mumbai (Maharashtra): Mumbai, being a major port city, is a hub for the chemical and petrochemical industries, including companies like BASF and Dow Chemicals.
- Ankleshwar and Vapi (Gujarat): These regions focus heavily on chemicals and dye production, housing some of the largest industrial estates dedicated to chemical manufacturing.
Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) |
|
State |
Location |
Andhra Pradesh |
Vishakhapatnam |
Gujarat |
Dahej |
Odisha |
Paradeep |
Tamil Nadu |
Cuddalore and Naghapattinam |
Source: Department of Chemical and Petrochemical
Chemical Clusters in India |
|
State |
Location |
Gujarat |
Ahmedabad, Ankleshwar, Nandaseri, Valsad and Vapi |
Kerala |
Ernakulum |
Uttar Pradesh |
Ghaziabad |
Jharkhand |
Jamshedpur |
Haryana |
Karnal |
Maharashtra |
Thane |
Source: Sectoral Roadmap for MSME (Chemical Industries), TERI Report
Plastic Parks in India |
|
State |
Location |
Assam |
Tinsukia |
Chhattisgarh |
Sarora |
Jharkhand |
Deoghar |
Karnataka |
Ganjimu, |
Madhya Pradesh |
Bilaua, Tamot |
Odisha |
Jagatsinghpur |
Tamil Nadu |
Thiruvallur |
Uttar Pradesh |
Gorakhpur |
Uttrakhand |
Sitarganj |
Source: India Briefing
Petrochemical plants in India (Existing and New) |
|
State |
Location |
Maharashtra |
Ratnagiri, Nagothane, Mumbai |
Kerala |
Kochi |
Tamil Nadu |
Cuddalore, Tuticorn |
Gujarat |
Vadodara, Jamnagar, Ankleshwar, Dahej, Hazira |
Haryana |
Panipat |
Punjab |
Bhatinda |
West Bengal |
Haldia |
Karnataka |
Mangalore |
Uttar Pradesh |
Auraiya |
Source: Report by Ministry of Chemicals and Fertilizers, Institute of Competitiveness
Gems and jewelry
India’s industrial production capacity in the gems and jewelry sector includes the crafting and processing of diamonds, gold, and precious gemstone jewelry. The country ranks among the top exporters of diamonds and gold jewelry, with significant markets in the U.S., Europe, and the Middle East.
Key clusters:
- Surat (Gujarat): Surat is globally renowned for its diamond cutting and polishing industry, processing about 90 percent of the world’s diamonds. The city is home to a highly skilled workforce specializing in this trade.
- Mumbai (Maharashtra): Mumbai is the leading hub for gold jewelry manufacturing and exports, with many of India’s top jewelry brands headquartered here. It also plays a significant role in the diamond trade.
- Jaipur (Rajasthan): Famous for its colored gemstone industry, Jaipur is a global center for the cutting and polishing of precious and semi-precious stones.
Gems and Jewelry Manufacturing Clusters in India |
||
Region/State |
Major clusters |
No. of manufacturing units |
East |
Paschim Medinipur, Howrah, Nadia, and South Twenty-Four Parganas |
46 |
Gujarat |
Rajkot, Surat, Vadodara, and Bhavnagar |
12 |
North |
Agra, Ghaziabad, Kanpur Nagar, and Varanasi |
44 |
Rajasthan |
Bikaner, Jodhpur, Nagaur, and Churu |
21 |
South |
Chittoor, Davanagere, Coimbatore, and Salem |
36 |
West |
Mumbai, Thane, Kolhapur, and Salem |
26 |
Source: GJEPC
Engineering goods and machinery
India’s manufacturing capacity in this sector includes heavy machinery, pumps, automotive components, and industrial equipment.
Engineering goods represent a significant portion of the country’s exports, primarily targeting markets in the United States, European Union, Southeast Asia, and the Middle East. This category encompasses machinery, electrical equipment, and transport equipment, and makes a substantial contribution to India’s overall export portfolio.
Key clusters:
- Coimbatore (Tamil Nadu): Known as the “Manchester of South India,” Coimbatore is a key center for the manufacturing of engineering goods, textiles machinery, pumps, and automotive components.
- Rajkot (Gujarat): Rajkot is a hub for the production of machine tools, bearings, and other engineering goods. It plays a vital role in supplying equipment for domestic industries and exports.
- Pithampur (Madhya Pradesh): Often referred to as the “Detroit of India,” Pithampur specializes in heavy machinery and engineering goods, catering to industries such as automotive, power generation, and agriculture.
Name of the Industrial Cluster |
District |
State |
Engineering Cluster, Nashik |
Nashik |
Maharashtra |
Hosur Engineering Industry Cluster |
Krishnagiri |
Tamil Nadu |
Sirgitti Engineering Cluster |
Bilaspur |
Chhattisgarh |
Source: Press Information Bureau
Other clusters in India
Science & Technology Clusters (S&T Clusters) |
||
Cluster Name |
Location |
State |
Bengaluru Science and Technology Cluster (BeST) |
Bengaluru |
Karnataka |
Bhubaneshwar City Knowledge Innovation Cluster (BCKIC) |
Bhubaneshwar |
Odisha |
Delhi Research, Implementation, and Innovation (DRIIV): |
Delhi |
New Delhi |
Jodhpur City Knowledge and Innovation Cluster (JCKIC) |
Jodhpur |
Rajasthan |
Pune Knowledge Cluster |
Pune |
Maharashtra |
Research and Innovation Circle of Hyderabad (RICH) |
Hyderabad |
Telangana |
Source: Report by Office of the Principal Scientific Adviser to the Government of India
Industrial corridors and SEZs in India: An Overview
India has been investing heavily in industrial corridors and Special Economic Zones (SEZs) to boost trade, attract investment, and drive economic growth. These zones and corridors are designed to foster industrial development, improve infrastructure, and enhance the ease of doing business.
However, challenges such as land acquisition, regulatory bottlenecks, and regional disparities need to be addressed for these initiatives to reach their full potential.
Delhi-Mumbai Industrial Corridor (DMIC)
The Delhi-Mumbai Industrial Corridor (DMIC) is one of the most ambitious infrastructure projects in India. It is a mega infrastructure initiative aimed at developing new industrial cities across six states, creating an economic backbone that links the national capital (Delhi) with India’s financial hub (Mumbai). Launched in 2006 in collaboration with the Japanese government, DMIC is a model of Public-Private Partnership (PPP) aimed at stimulating economic growth by developing smart, sustainable industrial zones.
Key Features of the DMIC |
|
Corridor length |
Approximately 1,500 km |
States covered |
Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat, and Maharashtra |
Primary objective |
To create a global manufacturing and investment destination by offering high-quality infrastructure to industries |
Smart cities |
The project includes the development of several smart cities, with industrial parks, high-tech zones, and logistics hubs connected by high-speed rail, road, and ports. |
Total investment |
The project is expected to attract an investment of around $100 billion, with a significant contribution from Japan, which holds a 26 percent stake |
Key components of DMIC:
- Dedicated Freight Corridor (DFC): A dedicated freight railway line connecting Delhi and Mumbai, enabling faster and more efficient transportation of goods. This will significantly reduce transportation time and costs.
- Industrial clusters: High-tech industrial clusters that will host manufacturing units, logistics hubs, and business parks. These clusters are designed to boost industrial output, with a focus on sectors like electronics, textiles, automobiles, and pharmaceuticals.
- Smart cities: Several smart industrial cities are planned along the corridor, including Dholera in Gujarat, Shendra-Bidkin in Maharashtra, and Greater Noida in Uttar Pradesh. These cities will benefit from modernized infrastructure, upgraded ICT systems, and green technology.
Economic impact of DMIC:
- Boost to manufacturing: DMIC will significantly boost India’s manufacturing capabilities, making the country a global hub for various industries, such as automotive, electronics, and textiles.
- Employment generation: The corridor is expected to create millions of direct and indirect jobs. With large-scale industrial activity, DMIC will promote skill development and enhance local employment opportunities.
- Infrastructure development: The corridor will lead to the development of critical infrastructure, including roads, railways, airports, and ports. This will improve the efficiency of supply chains and reduce the cost of transportation for businesses.
- Attracting investment: DMIC has already attracted significant domestic and foreign investments. The presence of world-class infrastructure, coupled with supportive policies, is expected to bring more global corporations to set up manufacturing bases in India.
- Trade and exports: By connecting industrial hubs to ports and international markets, DMIC will enhance India’s export potential. It will enable faster movement of goods and reduce the logistics cost, thus improving India’s competitiveness in the global market.
SEZs in India
SEzs are geographically demarcated areas within a country that have economic laws different from the rest of the country. In India, SEZs were introduced to encourage foreign investment, promote exports, and develop infrastructure.
The concept of SEZs in India gained momentum with the enactment of the SEZ Act, 2005. These zones offer various incentives to attract businesses, including tax breaks, simplified regulations, and improved infrastructure.
Key features of SEZs in India:
- Incentives: Exemption from customs duties, excise duties, service tax, and income tax for a specified number of years.
- Infrastructure: SEZs are equipped with world-class infrastructure such as reliable power, efficient transportation networks, and modern facilities.
- Export-oriented units: Businesses in SEZs are primarily focused on exports, though they can sell in the domestic market under certain conditions.
- Ease of doing business: SEZs offer simplified administrative procedures and regulations, making it easier for companies to set up operations.
Types of SEZs in India |
|
Sector-Specific SEZs |
Multi-Product SEZs |
These are dedicated to particular industries, such as IT/ITES, pharmaceuticals, textiles, or electronics. |
These zones accommodate multiple industries and provide infrastructure for various types of manufacturing and services. |
Special Economic Zones in India as of April 30, 2024 |
|
Number of Formal approvals (As on April 30, 2024) |
423 |
Number of notified SEZs (As on April 30, 2024) |
375 (Including 7 Central Govt.+12State Govt. / Private Sector SEZs set up prior to the enactment of SEZ Act, 2005) |
Number of In-Principle Approvals (As on 30.04.2024) |
35 |
Operational SEZs (As on March 31, 2024) |
280 |
Units approved in SEZs (As on December 31, 2023) |
5,711 |
Source: Fact Sheet, SEZ India
Economic impact of SEZs:
- Growth in exports: SEZs have played a significant role in increasing India’s exports. In sectors like IT and pharmaceuticals, SEZs account for a large proportion of the country’s total exports.
- Foreign direct investment (FDI): SEZs have been instrumental in attracting FDI, particularly in sectors such as electronics, automotive, and information technology.
- Job creation: SEZs have generated a large number of direct and indirect employment opportunities, particularly in manufacturing, IT, and services.
- Infrastructure development: The establishment of SEZs has led to the development of industrial infrastructure, including roads, ports, and power facilities.
- Regional development: SEZs are often set up in underdeveloped or rural areas, leading to the economic development of those regions.
Sector-wise Distribution of Operational SEZs (Data as of April 30, 2024) |
|
Agro Processing |
2 |
Airport based multiproduct |
0 |
Alumina/Aluminium |
2 |
Auto/Automobile Ancillary |
2 |
Aviation/Aerospace/Copper |
3 |
Mineral Based Industries |
1 |
Biotechnology |
7 |
Building Products / Transport equipments |
2 |
Electronic product/ Semiconductor/ Telecom equipments |
5 |
Engineering/Metallurgi cal Engineering |
13 |
Footwear/Leather |
4 |
Food Processing |
2 |
FTWZ (including Multi Sector SEZ) |
5 |
Gems and Jewellery |
4 |
Handicrafts & Carpets |
1 |
IT/ITES/Electronic Hardware and Software |
169 |
Multi-Product |
25 |
Multi-Services/MultiSector SEZ |
3 |
Non-Conventional Energy |
2 |
Petrochemical/ Petroleum/Oil and Gas |
0 |
Pharmaceuticals/chemicals |
14 |
Port-Based MultiProduct |
3 |
Power/Solar |
4 |
Textiles/Apparel/Wool |
7 |
Writing and printing paper mills |
0 |
Granite processing Industries and other allied machinery/ manufacturing |
0 |
Source: Fact Sheet, SEZ India
Challenges for SEZ development in India:
- Land acquisition issues: Acquiring land for SEZs has been a significant challenge, often leading to conflicts with local communities.
- Regulatory complexity: Despite the incentives, businesses often face bureaucratic hurdles, which complicates the ease of doing business.
- Impact of external factors: Global economic slowdowns and shifting trade policies can affect the demand for exports from SEZs, impacting their growth.
- Regional concentration of SEZs: SEZs are concentrated in certain states, such as Maharashtra, Gujarat, and Tamil Nadu, leading to an imbalance in regional development.
State-wise Distribution of Operational SEZs (Data as of April 30, 2024) |
|
Andhra Pradesh |
25 |
Arunachal Pradesh |
0 |
Chandigarh |
2 |
Chhattisgarh |
1 |
Delhi |
0 |
Goa |
0 |
Gujarat |
21 |
Haryana |
8 |
Jharkhand |
1 |
Karnataka |
37 |
Kerala |
20 |
Madhya Pradesh |
6 |
Maharashtra |
38 |
Manipur |
0 |
Nagaland |
0 |
Odisha |
5 |
Puducherry |
0 |
Punjab |
3 |
Rajasthan |
3 |
Sikkim |
0 |
Tamil Nadu |
55 |
Telangana |
38 |
Tripura |
0 |
Uttar Pradesh |
14 |
West Bengal |
7 |
Source: Fact Sheet, SEZ India
Opportunities for export-oriented units in India
Export-Oriented Units (EOUs) are businesses in India focused on exporting goods and services to international markets. Established under the Export-Import Policy of 1980, EOUs play a vital role in enhancing exports and foreign exchange earnings by creating an export-driven ecosystem with various incentives. Defined in the Foreign Trade Policy (FTP), EOUs commit to exporting their entire production, excluding permissible sales in the Domestic Tariff Area (DTA). Their activities encompass manufacturing, repair, service rendering, software development, and agriculture.
To set up an EOU, an application must be submitted using the ANF 6A form, along with a fee of INR 5,000 (US$59.45) and necessary documents. The Unit Approval Committee reviews applications within 15 days, and upon approval, a Letter of Permission (LoP) is issued. EOUs must maintain a positive Net Foreign Exchange (NFE) and sign a Legal Undertaking with the Development Commissioner.
EOUs enjoy various benefits, including customs and excise duty exemptions on imported and locally procured goods, GST exemptions on exports, and access to duty-free raw materials. They also benefit from streamlined regulations, world-class infrastructure, and the ability to retain 100 percent of foreign exchange earnings, enhancing financial flexibility.
The growth opportunities for EOUs are substantial, driven by India’s integration into global supply chains, particularly in sectors like automotive, pharmaceuticals, textiles, and IT/ITES. Government initiatives, such as “Make in India,” further support export capacity. EOUs also gain from India’s strategic location and trade agreements that provide preferential market access.
Looking ahead, the future for EOUs is promising, with trends indicating a diversification of export markets, a shift toward sustainable manufacturing practices, and increased investment in technology. By focusing on producing high-value products and adapting to market demands, EOUs can significantly contribute to India’s economic growth and foreign trade performance.
(US$1 = INR 84.11)
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