Foreign Direct Investment (FDI) in industrial zones is often concentrated in sectors aligned with national economic priorities, state incentives, and infrastructure availability. Identifying which sectors are actively attracting FDI helps investors evaluate demand, ecosystem potential, and co-location synergies. Below are five major industrial sectors currently receiving foreign investment in key growth corridors:
1. Automobile and Auto Components
- Attracts sustained FDI due to established supply chains and skilled labor availability.
- Includes investment in vehicle assembly, powertrains, precision components, and EV platforms.
- Suppliers co-locate near OEM hubs for cost efficiency and just-in-time production.
- State policies offer additional incentives for electric and hybrid vehicle units.
- Export-oriented manufacturing receives SEZ-linked infrastructure support.
2. Electronics and Electrical Equipment
- Foreign investors target consumer electronics, white goods, and electronic manufacturing services.
- Demand is supported by production-linked incentive (PLI) schemes and import substitution.
- Investments focus on PCB assembly, battery packs, and power distribution hardware.
- Proximity to ports and airports strengthens high-volume, low-weight export operations.
- Industrial parks offer plug-and-play units to reduce lead times for electronics assembly.
3. Pharmaceuticals and Medical Devices
- Receives steady FDI in formulation units, APIs, and medical consumables.
- Special bulk drug parks and medical device clusters are designated to attract capital inflows.
- The sector benefits from regulatory support for export manufacturing compliance (US FDA, EU GMP).
- Long-term lease options and shared testing facilities make industrial zones attractive.
- Strong overlap with biotechnology and nutraceuticals manufacturing in certain corridors.
4. Logistics and Warehousing
- FDI is directed toward integrated logistics parks, fulfilment centers, and cold chain infrastructure.
- Driven by demand from e-commerce, FMCG, and organized retail.
- Projects are structured as long-term asset plays with lease-backed revenue models.
- Investment models include REITs, infrastructure funds, and foreign-backed developers.
- Often co-located near intermodal terminals, freight corridors, or ring roads.
5. Renewable Energy and Green Manufacturing
- Targets solar module manufacturing, battery storage units, and green hydrogen equipment.
- Supported by central and state-level renewable energy policies and land allocation.
- Investors seek long-term leases in solar or industrial parks with grid connectivity.
- Manufacturing zones prioritize low-emission standards and green building certifications.
- FDI is linked to the backward integration of energy storage and sustainable materials production.
