- The Government of India and the Asian Development Bank (ADB) signed a USD 250 million policy-based loan that will continue to support industrial corridor development. This will make manufacturing more competitive, strengthen national supply chains, and link with regional and global value chains.
- This will help to strengthen policy frameworks for the Government of India’s National Industrial Corridor Development Programme (NICDP) and develop 11 industrial corridors.
- NICDP is India’s most ambitious infrastructure programme aiming to develop new industrial cities as “Smart Cities” and converging next generation technologies across infrastructure sectors.
- National Industrial Corridor Development and Implementation Trust (NICDIT) is the implementing agency under the administrative control of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
Industrial Corridors
Industrial corridors offer effective integration between industry and infrastructure, leading to overall economic and social development.
Economic Significance
- Avenues for Exports: The Industrial Corridors are likely to lower the cost of logistics thereby increasing the efficiency of industrial production structure. Such an efficiency lowers the cost of production which makes the Indian made products more competitive in international markets.
- Job Opportunities: Development of Industrial Corridors would attract investments for the development of Industries which is likely to create more jobs in the market.
- Logistics: These corridors would provide necessary logistics infrastructure needed to reap economies of scale, thus enabling firms to focus on their areas of core competence.
- Investment Opportunities: Industrial corridor provides opportunities for private sector investment in the provision of various infrastructure projects associated with the exploitation of industrial opportunity.
- Improved Functioning: Apart from the development of infrastructure, long-term advantages to business and industry along the corridor include benefits arising from smooth access to the industrial production units, decreased transportation and communications costs, improved delivery time and reduction in inventory cost.
Environmental Significance
The establishment of Industrial Units in a scattered manner along the industrial corridor across the length of the state will prevent concentration of industries in one particular location which exploited the environment beyond its carrying capacity and caused environmental degradation.
Socio-Economic Significance
- The cascading effect of industrial corridors in socio-economic terms are many such as setting up of industrial townships, educational institutions, hospitals. These will further raise the standards of human development.
- Moreover, people would find job opportunities close to their homes and would not have to migrate to far-off places (would prevent distress migration).
National Industrial Corridor Development Programme
- Aim: The Government of India is developing various Industrial Corridor Projects as part of the National Industrial Corridor program, which is aimed at the development of futuristic industrial cities in India that can compete with the best manufacturing and investment destinations in the world.
- Administration: The National Industrial Corridor Development and Implementation Trust (NICDIT) is under the administrative control of the Department for Promotion of Industry and Internal Trade (DPIIT) for coordinated and unified development of all the industrial corridors, which are at various stages of development and implementation.
- It is India’s most ambitious infrastructure programme aiming to develop new industrial cities as “Smart Cities” and converging next generation technologies across infrastructure sectors.
- 11 Industrial corridor projects are being taken up for development, with 30 Projects to be developed in 04 phases up to 2024-25.
Way Forward
- To make the NICDP successful, India has to be part of the Industrial Revolution 4.0, which will be shaped by a fresh wave of innovation in areas such as smart robotics, materials that are lighter and tougher, and a manufacturing process built around 3D printing and analytics.
- Industrial corridors will help India’s efforts to lead the world in the fourth wave of industrial revolution. Effective execution of this plan could make India take a major leap in the race of development.
Asian Development Bank (ADB)
- It is a multilateral development bank established on 19th December 1966.
- It is the principal international development finance institution for the Asia-Pacific region.
- It envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region.
- Headquarters: Manila, Philippines.
Functions
- It provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote social and economic development.
- ADB maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through cofinancing operations that tap official, commercial, and export credit sources.
Membership
- Membership in the ADB is open to members and associate members of the United Nations Economic Commission for Asia and the Far East.
- It’s also open to other regional countries and non-regional developed countries that are members of the U.N. or any of its specialized agencies.
- From 31 members at its establishment in 1966, ADB has grown to encompass 68 members, of which 49 are from within Asia and the Pacific and 19 outside.
Control
- ADB is run by a board of governors, which represents the member countries of the ADB.
- The ADB was modeled closely on the World Bank and had a similar weighted voting system where votes were distributed in proportion to members’ capital subscriptions.
- As of 2022, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Source of Funding
- It raises capital regularly through the international bond markets.
- The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.
