Thursday, May 30, 2024

Analysing the investment potential of industrial spaces

Must read

Economic development and progress in India are no longer exclusive to big metros. Tier 2 and Tier 3 cities are now accounting for a significant share of growth. The uptrend has further risen during the times of the pandemic, which led many enterprises in India to diversify their supply chain and tap into new corridors of growth.
Apart from metros, numerous other non-metros are now sharply raising their growth curve and playing a pivotal role in the economic progress of the country.
Retail, automobile, auto ancillary, textile, e-commerce, 3rd party logistics, textile, etc. are now moving towards smaller cities as well. Interestingly, reports suggest 60% of the start-ups operate from Tier 2 cities.
There are multiple factors that are fostering growth beyond large metros in India. GOI is investing heavily in infrastructure in smaller cities as well, in the form of airports, railway corridors, large networks of roadways, inland river transport systems, flyovers, bridges, suburban transit systems, industrial and business parks, and much more. This has not just led to the development of robust physical infrastructure but also improved the overall livability index.

In addition to the spurt in physical infrastructure, other factors such as cheaper land prices, a lower cost of labour, seamless access to ports, etc. are also drawing the attention of major manufacturers towards smaller cities in India. It is noteworthy to highlight the role of technology as well, as it helps in reducing entry barriers and enabling the development of world-class industrial parks and warehousing facilities even in non-metropolitan corridors of India.Some of the non-metros to watch out for could be the following:

Chandigarh Tricity: The tricity, which comprises Chandigarh, Panchkula, and Mohali, is located at the confluence of Haryana, Punjab, and Himachal Pradesh. The city is known for its magnificent infrastructure, orderliness, and well planned neighborhoods. While Chandigarh offers a lifestyle that is on par with big metros, it is also blessed with tranquil weather and scenic beauties, further fueling growth for IT parks, business parks, high streets, plotted developments, etc. The region is a thriving hub for a wide range of industries, such as light engineering, machine tools, tractors, plastics, wooden furniture, electronic appliances, etc.

Lucknow: The capital of UP was once called the Constantinople of the East due to its rich culture and history. Modern Lucknow, however, is set to play a larger role in the industrial growth of northern India. The city might be behind other established industrial clusters such as Noida and Gurgaon, but it is growing at a staggering pace.

In the UP investment summit last year, more than 56,000 crores of investments were pledged for Lucknow. The city’s 90,000-crore economy contributes to around 4% of UP’s GDP. It is connected to Delhi, NCR, via the Yamuna Expressway and the Lucknow Expressway. It is linked to the eastern part of UP through the Purvanchal Expressway. Recently, an MOU was signed between Russia and India to develop Brahmos missiles in Lucknow. The manufacturing facility will be spread across a sprawling campus of 200 acres and produce 80–100 missiles a year.

Guwahati: The city and it’s adjacent areas have been known for their verdant landscape, rich cultural appeal, and appetising cuisine. Nevertheless, strategically located at the crossroads of India, Southeast Asia, and South Asia, Guwahati can be instrumental in playing a larger role in trade with ASEAN economies. The region is rich in natural resources and cash crops, which further makes it a potent ground for numerous industries such as agribusiness, mining, renewable energy, etc. Government machinery is investing heavily in and around Guwahati to build a world-class infrastructure. This comprises railway corridors, warehouses, cold storage, truck and railway yards, multi-modal logistic hubs, etc.

Vizag: It’s 120,000-crore economy is counted among the most prosperous cities in the country. The city enjoys a high concentration of PSUs, shipyards, naval bases, logistic companies, and heavy industries. There is an increased spotlight on Vizag since it has become the capital of Andhra Pradesh (AP). Soon, the city will have a new airport spread across 5300 acres of land. Work has begun on a 6-lane expressway corridor connecting Vizag with Raipur. The $3750 crore project will give a big boost to agribusiness, SMBs, and other related businesses in the wider region.

(The author, LC Mittal, is the director of Motia Group.)

- Advertisement -spot_img

More articles

- Advertisement -spot_img

Latest article