Here is how India will become a global industrial hub
Make in India has become the latest buzzword in the country with Modi unveiling the campaign on his visit to US. With an aim to turn the country into a global manufacturing hub, the government has allowed 100 per cent FDI for Industrial Parks. This will surely help large industrial projects like DMIC.
According to KPMG, DMIC project is one of ‘100 Most Innovative Global Projects’. The project has been conceptualized in partnership and collaboration with the Government of Japan and is being implemented by the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC), an autonomous body with shareholding of Government of India through Department of Industrial Policy & Promotion (DIPP) (49%), Japan Bank for International Cooperation (JBIC) (26%) and Public Financial Institutions (HUDCO -19.9%, IIFCL -4.1% and LIC – 1%).
The government of India is facilitating the DMIC project through dedicated freight corridors and many other tax benefits and FDI incentives. This project is expected to be meet the standards of global competition in manufacturing sector and will be able to meet the needs of increasing urbanisation in India.
Vision, Goals and Objectives:
The vision is to create a strong economic base in India which can sustain in the globally competitive environment and enhance local commerce and foreign investments. The goals are mainly concerned with the economic development of the region. To improve the employment potential, increase the industrial output by three times and also to increase the exports by four times in just five years.
There are many existing industrial estates along the DMIC corridor. The objectives also include developing and improving the industrial infrastructure. To achieve the above mentioned objectives, the government plans to develop new industrial estates, clusters and export hubs in the region. This will not only increase the employment opportunities but also increases the exports.
Development of agro-processing industries, packaging and cold-storage industries is also important for achieving the overall improvement in industrial yield and exports. For all the infrastructure development efficient human resource is crucial factor. So one of the objectives is to develop skill development centres and vocational training centres.
To facilitate all the development and transportation of the goods, development of transport infrastructure and social infrastructure is necessary. Government has identified certain areas to achieve this. Provision of efficient rail, road, air and water connectivity is to be ensured for facilitating the goods from the industries. For this purpose, Efficient logistics chain with multi-modal transshipment zones and logistic hubs will be developed. Government also gave proposals for installation of Captive Power Generation Plants with power transmission facilities for uninterrupted usage of power. Residential, commercial, institutional and recreational infrastructure is also to be provided for attractive investment climate. These will ensure the primary goal of self sustainable development.
Impact on real estate
Major impact on real estate development due to DMIC will be on the six ‘million plus’ cities, which fall under the influence area of DMIC. Investment regions are selected in such a way that they get the benefit of the nearby major cities. This not only helps that particular investment region but also increases the business potential of the cities located near by. This potential will give a rise to the demand of physical and social infrastructure facilities including residential and commercial real estate development.
Of the cities which are located in this influence zone, non metropolitan cities like Ahmedabad, Jaipur, Faridabad, Meerut, Surat, Vadodara and Nashik will witness a rapid growth in real estate investment due to availability of lands and affordable property values. Existing transport infrastructure also plays an important role in the impact because the industrial areas and investment regions are located along the rail and road networks. Cities with good connectivity through national highways and rail network will be the first preference for real estate investment in the near future.
