- Post-pandemic, several countries, including India, have placed tremendous emphasis on shoring up infrastructure development, with an eye to creating employment opportunities and ensuring the economic activity remains fluid with the infusion of desired funds. No harm with the strategy though as the economic experts would like to see financial prudence is not sacrificed at the altar of knee-jerk reactions to challenges. The Atmanirbhar Bharat and several such initiatives of the Union Government were aimed at ensuring the infrastructural push accorded would also aid in the GDP growth prospects. Such measures have proved that the country is progressing in the right direction since none of the other countries matched our GDP growth in the last couple of years.
PC: atmanirbhar sena
- So far so good appears to be the mantra for the Union Government whose single-minded approach to infusing more funds/investment into infrastructure projects has yielded worthwhile results. Taking these initiatives even further, the Union Government’s industrial cities plan announced recently is raising apprehensions anticipating challenges that other mega projects failed to overcome. Let’s delve to understand how this issue may pan out in the coming days. Of course, the Cabinet’s decision to approve 12 new industrial cities with an investment of Rs 28,602 cr is impressive in intent. Spread across 10 states, the projects aim to boost domestic manufacturing by building greenfield cities, embodying plug-and-play and walk-to-work concepts.
- This move is expected to create a million direct jobs and three million indirect jobs which is to fructify by 2027, the government has claimed. As a follow-up to a budgetary announcement, the 12 cities would add to eight such cities that are already under different stages of implementation. That some success has been achieved in investment terms at four industrial cities that are in place is cause for optimism here. For instance, Tatas announced a mega-investment of Rs 91,000 cr for a semiconductor fab unit at Dholera earlier this year. Reports mention Hyundai has agreed to set up an automobile hub at Zaheerabad in Telangana, one of the cities green-lighted recently. Here’s the catch, the larger government agenda of boosting manufacturing has left a lot to be desired.
PC: Equipment Times
- Notably, Make in India launched in 2014 with much fanfare, was meant to increase manufacturing’s share of GDP to 25% by 2025 and create 100mn additional jobs. Those targets will not be met by next year. The earlier SEZ policy had also failed to achieve its objectives. How vigorously projects are pursued post announcements is a key factor here. There is also the larger issue of planning for the sector. Further, we are yet to come up with a New Industrial Policy. Industrial cities work best when planned alongside larger urban development of chosen sites. Also, the success of the initiative would hinge on coordination with states, some of which are ruled by opposition parties. The change in investment climate should be preceded by infra policy.
