NEW INDUSTRIAL INFRASTRUCTURE PROJECTS

NEW INDUSTRIAL INFRASTRUCTURE PROJECTS 

 

WHY IN NEWS? 

  • Recently, the Cabinet Committee on Economic Affairs (CCEA) has approved three infrastructure proposals worth Rs 7,725 crore for setting up greenfield industrial cities with connectivity to major transportation corridors.
  • The cabinet also approved a modified scheme for interest subvention for Ethanol production expanding the scheme to include grain based distilleries and not just molasses based ones.

MORE INFORMATION

  • These projects are based on major transportation corridors like Eastern & Western Dedicated Freight Corridors, Expressways and National Highways, proximity to ports, airports.
  • This will attract investments into manufacturing and position India as a strong player in the global value chain.
  • These projects will generate ample employment opportunities through development of Industrial Corridors.

INDUSTRIAL CORRIDORS 

 

  • Industrial corridors offer effective integration between industry and infrastructure, leading to overall economic and social development.
  • Economic Significance:
  • Avenues for Exports: The Industrial Corridors are likely to lower the cost of logistics thereby increasing the efficiency of industrial production structure. Such an efficiency lowers the cost of production which makes the Indian made products more competitive in international markets.

 

      • Job Opportunities: Development of Industrial Corridors would attract investments for the development of Industries which is likely to create more jobs in the market.

 

  • Logistics: These corridors would provide necessary logistics infrastructure needed to reap economies of scale, thus enabling firms to focus on their areas of core competence.

 

    • Investment Opportunities: Industrial corridor provides opportunities for private sector investment in the provision of various infrastructure projects associated with the exploitation of industrial opportunity.
    • Improved Functioning: Apart from the development of infrastructure, long-term advantages to business and industry along the corridor include benefits arising from smooth access to the industrial production units, decreased transportation and communications costs, improved delivery time and reduction in inventory cost.

WAY FORWARD 

  • To make the corridors successful, India has to be part of the Industrial Revolution 4.0, which will be shaped by a fresh wave of innovation in areas such as smart robotics, materials that are lighter and tougher, and a manufacturing process built around 3D printing and analytics.
  • Industrial corridors will help India’s efforts to lead the world in the fourth wave of industrial revolution.

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