Infrastructure work on 11 smart industrial cities in India to begin by December 2025

India is on the brink of a transformative leap in industrial development, with groundwork set to begin on 11 of the 12 planned smart industrial cities by December 2025.
November 27, 2025 | 14:25

This initiative—spanning 10 states, 26,000 acres of prepared land, and a projected investment of Rs 28,602 crore($3.5 billion)—signals a new era of intelligent, future-ready industrialisation.

It promises not only modern infrastructure, but also a powerful economic stimulus defined by innovation, sustainability, and global competitiveness.

The vision behind these 12 industrial smart cities is sweeping yet sharply focused: to design manufacturing and logistics hubs that can compete with the finest global industrial ecosystems while offering India’s enterprises world-class facilities and seamless connectivity.

The pace of progress reflects this clarity of purpose. According to National Industrial Corridor Development Corporation (NICDC) managing director and CEO Rajat Kumar Saini, contracts for four parks have already been awarded,

EPC (Engineering Procurement and Construction) contractors are in place, and four more contracts will be finalised within days.

By November 30, construction on eight parks will commence, followed by the remaining three by December 31.

What stands out most about the project’s trajectory is the groundwork that preceded it.

All land required for the 12 cities had already been acquired even before Union Cabinet approval in August 2024.

This ensured that once the plan received the green signal, implementation could begin without delay—an uncommon feat in large-scale infrastructure development.

Each of these industrial parks has been designed with a clear governance and operational framework: dedicated land allotment policies, individual managing directors, and independent special purpose vehicles (SPVs) to handle planning, development, and coordination.

This model not only decentralises decision-making but also empowers each park to tailor its offerings to industry-specific needs and regional strengths.

The economic potential of this initiative is immense. The 12 smart industrial cities are expected to attract investments of Rs1.5 lakh crore ($20 billion) while generating an estimated 10 lakh direct and 30 lakh indirect jobs.

Such figures reflect more than opportunities—they represent the emergence of new industrial clusters, new livelihoods, and new urban ecosystems that will uplift entire regions.

Investor confidence has already begun to show. Saini confirmed that strong interest is coming from diverse sectors, and the land allocation process is underway.

The EPC contractors, once they finish building the foundational infrastructure—roads, utilities, power systems, digital networks, logistics nodes, and common facilities—will pave the way for industries to immediately begin setting up manufacturing units.

This “build fast, operationalise faster” model is central to the speed and efficiency envisioned for the corridors.

Sector-focused planning also sets these smart cities apart. Instead of generic industrial zones, each park is being structured around specialisations that match both global opportunities and domestic strengths.

Dedicated zones for foreign investors are also being incorporated to deepen international industrial partnerships.

In Tumakuru, Karnataka, for instance, 300 acres have been reserved exclusively for Japanese companies—a strategic move that strengthens India’s ties with Japan while bolstering high-tech manufacturing.

The upcoming 12 industrial smart cities will join an expanding network of already operational or under-construction hubs.

Dholera in Gujarat, Shendra-Bidkin in Maharashtra, Greater Noida in Uttar Pradesh, and Vikram Udyogpuri in Madhya Pradesh are already functioning as smart industrial centres.

With four more cities under development, the addition of the new 12 will take India’s total count to 20—creating one of the world’s largest integrated networks of smart industrial zones.

Their geographical spread is equally impressive.

The new cities are coming up in Khurpia(Uttarakhand), Rajpura (Punjab), Agra and Prayagraj (Uttar Pradesh), Gaya (Bihar), Dighi Port (Maharashtra), Jodhpur-Pali-Marwar (Rajasthan), Kopparthy and Orvakal (Andhra Pradesh), Zaheerabad (Telangana), and Palakkad (Kerala).

These locations are strategically positioned along India’s most important industrial corridors—the Amritsar-Kolkata, Delhi-Mumbai, Vizag-Chennai, Hyderabad-Bengaluru, Hyderabad-Nagpur, and Chennai-Bengaluru corridors.

What this alignment ensures is seamless connectivity to ports, highways, dedicated freight corridors, and global supply chains.

It amplifies the efficiency of manufacturing, accelerates logistics, and strengthens India’s position as a central player in global production networks.

Beyond the structural and economic benefits, the initiative showcases a vision of long-term national development rooted in partnership and preparedness.

States have collaborated closely with the NICDC, and the project has gained momentum through shared priorities.

Lessons from earlier phases of industrial corridor development have been applied to streamline processes and improve coordination, ensuring that the new cities benefit from years of experience.

These smart industrial cities also reflect a broader evolution in India’s growth story. They represent confidence in the country’s industrial capacity, a commitment to sustainable and technologically advanced infrastructure, and a determination to create jobs and economic opportunities at scale.

As global manufacturers seek stable, dynamic, and digitally integrated ecosystems, India’s readiness to provide such platforms positions the country as an increasingly preferred destination.

With construction beginning by the end of 2025, the next three years will mark a phase of rapid development across these corridors.

As the core infrastructure takes shape and industries begin to establish their units, each city will grow into a vibrant hub of production, innovation, and employment.

The momentum is unmistakable. The industrial smart city initiative is more than just a set of infrastructure projects—it is a statement of intent.

It signals India’s aspiration to build world-class industrial ecosystems, integrate more deeply with global supply chains, and create equitable opportunities across regions.

Tarah Nguyen