Cabinet approves 12 new industrial smart cities

India has secured Cabinet approval to establish 12 new industrial smart cities along the Golden Quadrilateral as part of its goal to become a US$ 5-trillion economy. Located across 10 states and six major industrial corridors, including cities like Khurpia (Uttarakhand), Rajpura-Patiala (Punjab), Dighi (Maharashtra), and Jodhpur-Pali (Rajasthan), these cities aim to decongest overcrowded metropolitan areas, boost manufacturing, and create employment, transforming the country’s industrial and urban landscape.

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In its quest to become a US$ 5-trillion economy, India has obtained Cabinet approval to establish 12 new industrial smart cities along the Golden Quadrilateral. With an investment of Rs 28,602 crore, this ambitious project aims to alleviate overcrowded metropolitan areas, spur manufacturing, and generate employment, marking a pivotal moment in India’s industrial and urban transformation.

Located across 10 states and six major industrial corridors, these cities include- Khurpia (Uttarakhand), Rajpura-Patiala (Punjab), Dighi (Maharashtra), Palakkad in Kerala, Agra and Prayagraj (Uttar Pradesh), Gaya (Bihar), Zaheerabad (Telangana), Orvakal and Kopparthy (Andhra Pradesh), and Jodhpur-Pali (Rajasthan).

These smart cities, powered by advanced technologies such as AI, robotics, high-speed internet, and smart infrastructure, go beyond digital integration by focusing on optimizing resources and reducing emissions.

As part of India’s broader economic strategy, these cities will promote sustainable urban growth and contribute to the nation’s vision of ‘Viksit Bharat’ (Developed India). By positioning them along the Golden Quadrilateral, a network of highways connecting India’s key metropolitan areas, the government intends to create a dynamic corridor of industrial and economic growth.

The smart cities will be integrated with PM GatiShakti, the National Master Plan for Multi-modal Connectivity, ensuring they are seamlessly connected to the country’s transportation and logistics networks. This connectivity is expected to amplify economic growth and efficiency by synergizing urban development with infrastructure.

The development of these smart cities is poised to significantly impact the Indian real estate market. Commercial real estate will experience a surge due to increased demand for office spaces, warehouses, and industrial parks, driven by the influx of manufacturing units and businesses. This demand is likely to attract substantial investment, transforming the sector. Residential real estate will also see heightened demand, spanning affordable housing for workers to luxury apartments for executives, as job opportunities increase in these new cities. Specialized industrial real estate, such as smart factories and high-tech industrial parks, will further diversify the real estate landscape.

This large-scale investment will enhance infrastructure, including transportation, utilities, and communication networks, raising property values both within and around these smart cities. Real estate developers and investors who act early stand to benefit significantly from long-term value appreciation.

In addition to decongesting overcrowded urban areas, the initiative aligns with global trends towards sustainability and technological integration in real estate. Developers focusing on eco-friendly construction and smart technologies will likely see increased demand for their properties, pushing the Indian real estate market toward more sustainable and technologically advanced practices.

However, challenges persist. The development pace must balance economic growth with environmental concerns to ensure long-term sustainability. Building and managing these high-tech cities will require a skilled workforce, driving the need for investments in education and training. Attracting the first wave of residents and businesses may also require innovative incentives. Moreover, a robust regulatory framework is essential for maintaining quality and safety standards. Finally, encouraging behavioral changes among citizens, such as adherence to rules and preservation of public spaces, will be crucial to the success of these cities.