Gati Shakti : Planning for Industrial corridors  Link

Recently, Finance ministry has asked officials to map all industrial zones and put them under the lens of the Gati Shakti masterplan. FM also talked about providing "transformative and holistic infrastructure development" to industrial zones and industrial corridors. 

What should be understood by this? The author examine the issue and concludes that careful planning and implementation is crucial for success.

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Good intentions at the initial planning stage

Industrial corridors are seeing a spate of activity in recent years. As many as 11 Industrial Corridors Projects and 30 projects are to be developed by NICDC or National Industrial Corridor Development Corporation Limited till 2024-25. Money for infrastructure and industrial facilities in the corridors comes from Government through various grants and schemes, institutional lenders (eg. ADB, JBIC), and domestic & foreign private sector.

Industrial zones are the most crucial plank for India's ambitions to ramp up industrial and manufacturing activity. Industrial zones are coming up across the length and breadth of India, promoted no doubt by well-meaning State governments. Industrial zones (ie production centres) house clusters that specialise in specific industries or manufacturing. 

As there is interdependence among different sectors, so these industrial zones must have linking infrastructure. Industrial corridors are the arteries that provide the transportation and utility needs of the industrial zones. Industrial corridors are developed keeping in mind features like multi-modal connectivity, supply of sustainable resources, climate resilience (eg water useage) and planned urbanisation in cities (eg smart port cities). 

Urbanisation needs careful planning

Centres of urbanisation appear at/near industrialised areas for housing workers and their families. These are often called economic zones as urbanisation itself leads to strong economic growth. It is the contention of experts that urbanisation in India should be well planned to ensure it is equitable and uniform. 

What is meant by Equitable and Uniform growth?

India will continue to experience the most rapid urban population growth till 2050. Statistics from 1951 to 1991, show a trend where cities with 1-million population have increased from 5 to 23, whilst share of urban population in middle and smaller sized cities has gone down. 

Surging urban population growth has lead to migration from hinderland (thereby hollowing out populations from many regions) and growth of sprawling and badly planned megacities. Experts believe that urbanisation should be equitable (ie not concentrated in a few regions) and uniform (ie growth should happen uniformly in all cities).

How will industrial corridors help in Equitable and Uniform growth?

Spread of industrial development, which creates urban population growth, will be done in many locations across India, thereby easing the need for inter-regional migrations. Megacities are usually overburdened with relatively poor public services. Spread of economic activity to middle and smaller sized cities (viz industrial zones and public policy) will reduce the attraction of megacities. Moreover, seamless movement in the region will greatly reduce the need to move to megacities.

Maximising value of Industrial Corridors

The aim of industrial zones and industrial corridors is for global competitiveness in industrial production and manufacturing. It is important to attract the world's best or biggest firms to set up business in these zones. As such, it requires a "holistic" or integrated planning approach for industrial corridor development. This means, among other things, creating the best outcomes from roads, railways, airports, ports, waterways, and mass transport. 

Gati Shakti masterplan is an ideal tool and India's answer to integrated planning for infrastructure. It is able to look at deficiencies in infrastructure both at the planning stage and at anytime thereafter.

Gaps in infrastructure can arise because industrial growth of industrial zones depends on volume and nature of new industries that are attracted to them. There are also practical reasons for using GS tool at various times, eg, congestion at transport hubs, inadequate living conditions in urban centres, shortage of resources, enviromnental concerns (eg pollution) and impact of new policy.