India clears $3.6 bln industrial park drive to bolster manufacturing

New Delhi — India’s cabinet on Wednesday approved spending of 336.60 billion rupees ($3.63 billion) to develop 100 industrial parks across the country, Information Minister Ashwini Vaishnaw said, as the government seeks to strengthen domestic manufacturing capacity.

The parks will be developed through joint ventures involving state governments and a state-run company, Vaishnaw told reporters after the cabinet meeting.

Industry Secretary Amardeep Singh Bhatia said the government expects to develop about 33,000 acres of land for manufacturing over a period of six years.

The planned industrial parks will range in size from 100 acres to 1,000 acres, equivalent to about 40.5 hectares to 404.7 hectares, he said. The government will provide financial support of up to 10 million rupees per acre for core and social infrastructure within the parks.

Officials said the initiative is aimed at creating integrated manufacturing zones with necessary facilities to support industrial activity.

The programme reflects India’s ongoing efforts to expand its manufacturing base through infrastructure development and coordination with state governments.

The use of joint ventures is expected to facilitate land acquisition and project implementation, while financial assistance is intended to reduce upfront costs for infrastructure development.

Separately, the cabinet approved 117 billion rupees for minimum support prices for cotton purchases, according to government officials.

The allocation is intended to support procurement operations under existing price support mechanisms.