Industrial Parks (IP) and India’s Industrial Growth

• Industrial Parks (IPs) are emerging as a key pillar of India’s innovation and industrial growth.
• They are developed through partnerships between the Union Government, State Governments, and the private sector.
• IPs provide shared infrastructure, streamlined approvals, and a predictable regulatory environment to industries.

Key Essentials of an Industrial Park

• A strong Regulatory Regime ensures incentive-based rules for labour laws, land use, and foreign investment.
  • Integrated Infrastructure refers to shared facilities such as telecom networks, laboratories, statutory clearances, training centres, and security systems.
• Defined Geography means a master-planned land area with uniform standards for buildings and industrial facilities.
• Dedicated Management involves a single authority responsible for firm entry, operations, and regulatory compliance.
• Multi-tenant Clusters enable multiple firms to collaborate and share resources within the industrial park.

Status of Industrial Parks in India

• Currently, India has more than 4,500 industrial parks, as recorded in the India Industrial Land Bank (IILB).
• 306 plug-and-play industrial parks are under development to enable faster industrial setup.
• Additionally, 20 industrial parks and smart cities are being developed under the National Industrial Corridor Development Corporation (NICDC).

Key Benefits Offered by Industrial Parks

• Industrial parks drive economic growth by integrating scarce factors of production and improving productivity.
• They enhance operational efficiency and attract foreign direct investment (FDI).
• India ranks among the top five global destinations for greenfield projects, as per UNCTAD, partly due to industrial park ecosystems.
• IPs contribute to job creation, higher wages, and broader industrial development.
• They promote environmental responsibility by encouraging eco-friendly practices and resource efficiency.
• IPs also support social responsibility by providing gender-sensitive facilities, health services, and workplace security systems.

Initiatives Taken to Promote Industrial Parks

• The Plug-and-Play Industrial Parks Scheme received an allocation of ₹2,500 crore in the Union Budget 2025–26.
• The India Industrial Land Bank (IILB) is a centralized GIS-enabled platform providing spatial and non-spatial data on industrial land.
  • IILB has been developed by the Department for Promotion of Industry and Internal Trade (DPIIT).
• The Industrial Park Rating System (IPRS) is a comprehensive framework for assessing the performance and quality of industrial parks.
• IPRS 3.0, launched in September 2025, introduced enhanced parameters on sustainability, skill linkages, and digitalization.
• Ease of Doing Business reforms support IP development through measures like the National Business Reforms Action Plan (BRAP), 2014.
• The implementation of Goods and Services Tax (GST) has reduced compliance burden and improved the investment climate.