What local or national policies promote industrial clustering in the corridor?

Industrial clustering is a central goal of both local and national policies aimed at improving competitiveness, supply chain integration, and infrastructure efficiency. These policies create concentrated zones of manufacturing and logistics activity by providing land, incentives, utilities, and institutional support. In the context of industrial corridors, they foster regional economic growth and make investment more attractive. Below are five major policy categories that actively promote clustering within such zones:

1. National Industrial Corridor Development Programme (NICDP)

• A flagship central initiative to develop planned industrial cities and clusters along key freight and economic corridors.
  
• Includes corridors like Delhi–Mumbai, Chennai–Bengaluru, Amritsar–Kolkata, and Hyderabad–Nagpur.
  
• Promotes plug-and-play industrial zones with pre-cleared land, trunk infrastructure, and integrated logistics.
  
• Implemented by NICDC Ltd. in partnership with state governments and industrial boards.
  
• Enables clustering by aligning industrial development with multi-modal transport connectivity.

2. State Industrial and Sectoral Policies

• State-level industrial policies provide location-specific incentives to promote cluster formation in designated regions.
  
• Examples include:
  
  • Stamp duty waivers
    
  • Power tariff subsidies
    
  • Capital investment assistance
    
  • Custom infrastructure support for key anchor industries
    
• Many states (e.g., Tamil Nadu, Gujarat, Maharashtra, Telangana) also offer sectoral cluster development schemes targeting auto, pharma, or electronics.

3. Production Linked Incentive (PLI) Schemes

• National-level PLI schemes offer performance-based incentives to encourage investment in specific manufacturing sectors.
  
• Sectors covered include electronics, textiles, auto, pharmaceuticals, solar modules, and food processing.
  
• Companies often locate within clusters or industrial parks to optimize cost, infrastructure access, and supply chain efficiencies.
  
• These incentives indirectly drive cluster formation around approved PLI beneficiaries and their vendors.

4. Integrated Manufacturing Clusters (IMCs) and National Investment and Manufacturing Zones (NIMZs)

• IMCs and NIMZs are designated as self-contained industrial ecosystems with:
  
  • Large contiguous land banks
    
  • Shared utilities and environmental clearances
    
  • Common infrastructure such as CETPs, warehousing, and testing labs
    
• Governed by special development authorities and supported by state facilitation mechanisms.
  
• Designed to house multiple related industries and MSMEs under a hub-and-spoke model.

5. Cluster Development Programs for MSMEs and Sector-Specific Parks

• The Ministry of MSME and other central agencies run programs like:
  
  • MSE-CDP (Micro & Small Enterprises Cluster Development Programme)
    
  • Mega Food Park Scheme
    
  • Medical Device Parks Scheme
    
• Offer funding for common facility centers (CFCs), tool rooms, and testing labs to strengthen smaller manufacturers in a cluster format.
  
• Encourage vendor development and supply chain co-location with larger units or anchor tenants.
  
• Facilitates formalization, quality enhancement, and export readiness among industrial MSMEs.