ADB greenlights $250 Million for India’s Industrial Corridors

The Asian Development Bank (ADB) has given the green light for a $250 million policy-backed loan, geared towards expediting the progress of industrial corridors in India. The primary goal is to enhance the competitiveness of the manufacturing sector, fortify national supply chains, and cultivate connections with regional and global value chains.

Additionally, the initiative targets the creation of a substantial number of high-quality jobs. ADB asserts that this financial backing is in harmony with the National Industrial Corridor Development Program (NICDP), introduced by the Government of India in 2016 and subsequently updated in 2020 to refine the planning and management of industrial economic clusters. The injection of funds by ADB serves to fortify the efficient implementation of NICDP.

According to Sameer Khatiwada, ADB Senior Public Management Economist, the program is anticipated to stimulate job creation across diverse sectors, including agribusiness, automotive, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles.

Khatiwada emphasises that this program will lead to the increased formalisation of labour, heightened productivity, and higher wages—factors directly contributing to poverty alleviation in the corridor states.

The envisioned industrial corridor comprises an efficient multimodal transport network within a specified geographical area, bolstered by high-quality infrastructure, logistics, skill development, and a business-friendly policy framework. Its objective is to create distribution networks that connect production centers, urban hubs, and international gateways such as ports and airports.

The loan specifically backs subprogram 2 of the Industrial Corridor Development Program, focusing on the development of multimodal logistics infrastructure under the government’s Prime Minister Gati Shakti platform. The initiative places a spotlight on gender equality in manufacturing and corridor development, providing training and upskilling programs for workers in industrial corridors.

Furthermore, the second subprogram aims to nurture alternative financing solutions, including green finance, for industrial cluster development. It places a priority on industrial workplace safety and integrates environmental and climate change practices.

To improve the investment climate and facilitate ease of doing business, the program introduces a synchronized central and state-level single-window clearance system. It also adopts digital processes to streamline logistics, granting private investors access to crucial data.

This recent financial injection builds upon the success of the $250 million Subprogram 1 loan sanctioned by ADB in October 2021. This loan played a pivotal role in reinforcing policy frameworks for NICDP and contributed to the development of 11 industrial corridors.

National Industrial Corridors

The National Industrial Corridor Development Programme represents India’s most ambitious infrastructure initiative, aiming to metamorphose emerging industrial cities into “Smart Cities” by incorporating cutting-edge technologies across diverse infrastructure sectors. The program unveils numerous projects dedicated to nurturing futuristic industrial cities within the country, with the overarching objective of establishing these cities as globally competitive manufacturing and investment hubs.

The government of India is developing 11 Industrial Corridor Projects as part of the National Industrial Corridor Programme across the country in a phased manner. They are given below

  • Delhi Mumbai Industrial Corridor (DMIC)
  • Chennai Bengaluru Industrial Corridor (CBIC)
  • Amritsar Kolkata Industrial Corridor (AKIC)
  • East Coast Industrial Corridor (ECIC) with Vizag
  • Chennai Industrial Corridor (VCIC)
  • Bengaluru Mumbai Industrial Corridor (BMIC)
  • Extension of CBIC to Kochi via Coimbatore
  • Hyderabad Nagpur Industrial Corridor (HNIC)
  • Hyderabad Warangal Industrial Corridor (HWIC)
  • Hyderabad Bengaluru Industrial Corridor (HBIC)
  • Odisha Economic Corridor (OEC)
  • Delhi Nagpur Industrial Corridor (DNIC)

This strategic initiative not only aims at job creation but also anticipates robust economic growth, fostering comprehensive socio-economic development

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