1. Strategic Infrastructure Connectivity
Industrial corridors that offer multi-modal connectivity—including highways, rail links, ports, and airports—are increasingly preferred by industries. These corridors reduce transit time and logistics costs through:
- Dedicated Freight Corridors (DFCs) for fast cargo movement
- Proximity to national highways and logistics parks
- Easy access to container depots, dry ports, and customs facilities
This connectivity strengthens supply chains and facilitates seamless domestic and international distribution.
2. Government Investment and Policy Support
Popular industrial corridors are often backed by large-scale government investment and favorable policy frameworks, including:
- Incentive schemes like PLI (Production Linked Incentives)
- Single-window clearance systems for faster approvals
- Development of Special Economic Zones (SEZs) and Integrated Industrial Townships
Corridors aligned with national projects such as the Delhi–Mumbai Industrial Corridor (DMIC) and Chennai–Bengaluru Industrial Corridor (CBIC) benefit from long-term infrastructure and institutional support.
3. Presence of Sector-Specific Clusters
Some corridors are gaining traction due to the development of sector-focused industrial clusters, which attract ecosystem partners and promote specialized growth. For example:
- Automotive hubs in Chakan (Pune), Oragadam (Chennai), and Sanand (Gujarat)
- Pharmaceutical zones in Hyderabad (Pharma City) and Baddi (Himachal Pradesh)
- Textile and apparel parks in Surat, Tiruppur, and Bhilwara
Such clustering allows industries to access skilled labor, vendors, and support services more efficiently.
4. Availability of Developed Industrial Land
Corridors that offer pre-planned industrial parks with ready infrastructure see higher demand. Features include:
- Power, water, sewage, and telecom facilities
- Internal roads, common utility areas, and effluent treatment plants
- Clear title, zoning approvals, and plug-and-play setups
The ease of setup significantly enhances their appeal among manufacturers and logistics players.
5. Cost-Effectiveness and Resource Access
Many popular corridors are located in regions with:
- Affordable land and labor compared to metro cities
- Access to raw materials (e.g., minerals, agro products, petrochemicals)
- Lower setup and operating costs due to fiscal benefits and tax exemptions
These advantages attract both domestic and foreign direct investment (FDI), boosting corridor popularity.
6. Integration with Smart City and Urban Growth Plans
Corridors aligned with smart city missions, urban expansion, and smart logistics networks are gaining traction due to:
- Long-term urban-industrial synergy
- Availability of residential and social infrastructure for workers and executives
- Potential for mixed-use development and township planning
This makes such corridors more sustainable and attractive to companies planning end-to-end operational ecosystems.
7. Support from Industrial Development Agencies
Corridors that are actively promoted by state industrial development corporations (e.g., MIDC, KIADB, RIICO, TSIIC) benefit from:
- Organized land allotment systems
- Timely infrastructure upgrades
- Investor facilitation and grievance redressal mechanisms
These factors contribute to higher investor confidence and quicker project rollouts.
