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Hareet Shukla, MD, Dholera Industrial City Development Limited (DICDL), on how industrialisation leads to urbanisation

It is beyond doubt that a nation’s progress and economic growth are interlinked with industrial and technological advancements. Since the second half of 1700s when the first machines established the need for organised industries in Europe and in 1850 in India, we have come a long way.

A great deal has been learnt and implemented to make industries more efficient. This includes having industrial areas, special economic zones, etc. Machines and manufacturing units have proved to play a pivotal role to meet rising domestic and foreign consumption demand in sync with the burgeoning population.

In the last three decades, India’s GDP increased from Rs 5.86 lakh crore to an estimated Rs 148.2 lakh crore in 2021-22, up by 2429%. And, Gujarat is India’s most industrialized and urbanized state. With roughly 6% of India’s geographical area and 5% of its population, the state accounts for almost 8% of India’s Gross Domestic Product (GDP). As per the Annual Survey of Industries (ASI) 2017-18, Gujarat stood first in India in terms of Industrial Output with ~17% of India’s output. Gujarat contributes over 20% of India’s exports and Gujarat’s ports handle over 40% of India’s cargo.

With the global players seeing India as one of the countries to set up their manufacturing facilities to increase output for them and to meet with the ever increasing consumer demand, we cannot continue to expect our economy to grow based on the archaic and outdated machinery and technology.

To meet the rising needs, the industrial output too needs to keep its pace. Technological innovations have to be introduced such as the latest being smart cities and smart industrial cities.

With the availability of high-speed internet connections and application of Artificial Intelligence, the Internet of Things and many more efficient gadgets and machinery available increasing, even our cities and industries have to evolve.

Already, India is implementing Smart Cities Mission, with a total investment of over Rs 2.05 lakh crore through 5,151 projects. With about 63% of India’s GDP getting generated in the cities, they have to upgrade to the next available and futuristic technology. In fact, by 2030, 70% of India’s new employment is expected to be generated in these very urban areas.

It won’t be wrong to term the latest transformation as an industrial revolution – the fourth.

Germany, which is well-known as the world’s leading industrial supplier, too wants to enhance its competitive edge by investing in Information and Communication Technologies solutions. For this fourth industrial revolution, the German government already is investing 200 million Euros, this is apart from the funds invested by the private players – big corporates, small and medium enterprises to accelerate their own development. By 2028, German companies intend to invest about 10.9 billion Euros to incorporate into the existing systems and also to make the transition from their existing setups to emerge as one of the leaders in the global market.

Other countries such as Austria, Switzerland, Australia, Japan, Korea etc. already have initiated measures in upgrading their industrial parks and be part of this Industry 4.0.

As the world economy is at the cusp of a ‘smart makeover’, India should not be left behind to draw benefits from the technological advancements and to have a sizeable share in the future global manufacturing and services market.

Dholera Smart City or Dholera Special Investment Region is one such and one of the first in India. This greenfield industrial city is planned to cover an area of approximately 920 sq. km. in Gujarat.

The National Industrial Corridor Development and Implementation Trust has invested INR 3,000 Crore cash equity into the Special Purpose Vehicle. This is other than 5,204 hectares of amounting equivalent to INR 3,000 Crore as land equity. Global industries and corporates have already pledged and initiated the execution of the investment plans at Dholera Special Investment Region.

This project is the first initiative under the Delhi Mumbai Industrial Corridor to be developed in the 100 km of the influence area of the Western Dedicated Freight Corridor. As the city develops and expands, it will cater to a population of about 20 lakh and an employment base of over 8 lakh.

Some of the sectors that are in the process of making its presence include defence, manufacturing, heavy engineering, auto & auto ancillaries, pharma & biotech, electronics, agro & food processing among others.

It is a known fact that industrialisation leads to urbanisation and also attract people to cities or urban centres for the employment opportunities available, the industrial set-ups act as a catalyst to a country’s economic growth.

In the last couple of decades, with the increase in need towards automation and making these manufacturing units Industry 4.0 ready, AI, IT and ITeS have shown a tremendous growth in the country. This sector today in India is already contributing to develop the country’s tier I and II cities into IT hubs which are catering to domestic and foreign markets.

It is time for India’s upcoming industrial cities to be ‘smart’ and to take the next leap to become one of the biggest contributors to India’s economic growth.

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Autor(en)/Author(s): Hareet Shukla

Quelle/Source: Construction Week Online, 08.06.2021

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