• India’s manufacturing ecosystem is supported by 4,420+ industrial parks and zones that reduce setup time, improve logistics, and provide MSMEs with reliable utilities and shared infrastructure.

• These cluster-based models strengthen MSME participation in supply chains, especially in automotive, engineering, and renewable energy.

• With new rating systems and industrial corridors, industrial parks are becoming critical to India’s long-term industrial ambitions.

A Strong Manufacturing Base and the Need for Industrial Clusters 

India’s manufacturing sector contributes approximately 17% of GDP and employs over 27 million workers in key industries such as automotive, engineering, chemicals, pharmaceuticals, consumer durables, electronics, and textiles. As the nation targets manufacturing to account for 25% of GDP by 2030, the government is reinforcing the growth with policy support. The National Manufacturing Policy has also been recast as the National Manufacturing Mission in the Union Budget 2025–26. It places emphasis on five pillars: improving ease and cost of doing business, developing a future-ready workforce, supporting MSME growth, deepening technology access, and promoting quality-driven manufacturing.¹ A core component of this support is industrial parks, which have become one of the most important enablers of India’s growth story.  

India today hosts more than 4,420 industrial parks, estates, and zones², forming an interconnected backbone for manufacturing expansion. These planned clusters offer structured infrastructure, planned layouts, regulatory ease, and direct linkages to highways, ports, and logistics hubs, which are often difficult for MSMEs to access independently. 

While large manufacturers typically anchor these parks, MSMEs are emerging as central beneficiaries, leveraging shared infrastructure, collaborative supply chains, and cost efficiencies that support sustainable scaling. 

What Industrial Parks Mean for India’s Growth 

Industrial parks are planned zones created to support manufacturing and services by offering ready-to-use land, uninterrupted utilities, and simplified compliance. Most parks are developed and managed by state industrial development corporations such as the Maharashtra Industrial Development Corporation (MIDC), Gujarat Industrial Development Corporation (GIDC), Telangana State Industrial Infrastructure Corporation (TSIIC), Small Industries Development Corporation (SIDCO), while others follow a public–private development model.  

Industrial parks play an extensive, deeply structural role in the economy, as they reduce entry barriers for new enterprises by removing the challenges of land procurement and utility setup. Besides, they also generate employment in regional and semi-urban areas, supporting balanced economic development and enabling cluster-based supply chains that improve production speed, logistics efficiency, and overall competitiveness. 

Why the Momentum Around Industrial Parks Is Accelerating 

A mix of infrastructure investment, regulatory reform, and long-term industrial strategy supports the rapid expansion of industrial parks: 

• Infrastructure benchmarking systems have improved transparency and encouraged parks to upgrade utilities and connectivity.

• Industrial corridor development, including the Delhi–Mumbai Industrial Corridor (DMIC), Chennai–Bengaluru Industrial Corridor (CBIC), and other multimodal routes, has created plug-and-play environments for new units.

• Integrated logistics planning ensures smoother movement of goods through ports, airports, and freight networks.

• State-level investment policies have strengthened single-window approvals, concessional land access, and digitised compliance.

How Industrial Parks Benefit MSMEs 

For MSMEs that often face high operational costs, fragmented logistics, and limited access to utilities, industrial parks provide tangible advantages: 

• Cost Efficiency 
  Common facilities—such as power, water, effluent treatment, and internal roads—reduce both capital expenditure and recurring overheads. Pre-approved plots cut down establishment time. 

• Supply Chain Synergy 
  Proximity to OEMs and component manufacturers boosts collaboration, reduces transportation delays, and strengthens just-in-time delivery. 

• Access to Infrastructure 
  Testing labs, warehousing, transport nodes, and waste management facilities allow smaller units to meet quality, safety, and export requirements more easily. 

• Simplified Compliance 
  Single-window systems within parks streamline environmental approvals, construction permits, and electricity connections, easing day-to-day regulatory interactions. 

• Technology Transfer and Networking 
  Clusters promote interaction among similar industries, enabling knowledge sharing, shared R&D, collaborative innovation, and skilling initiatives. 

The power of industrial clustering can be seen in the auto and electric vehicle (EV) sectors. For instance, parks focused on automotive and EV manufacturing have attracted hundreds of MSMEs working in batteries, charging infrastructure, precision components, and electronics in Tamil Nadu, Telangana, and Karnataka. Clusters give smaller manufacturers access to consistent demand, stable utility infrastructure, and collaborative networks. As a result, MSMEs are participating more actively in India’s EV supply chain, from motor assemblies and power electronics to lightweight materials and embedded systems. 

The same model is now being replicated in renewable energy components, pharmaceuticals, and consumer electronics. This shows how sector-focused industrial parks directly strengthen MSMEs looking to expand, diversify, or relocate, if small businesses adopt a strategic approach, which includes: 

1. Identifying relevant parks: This begins with using the Industrial Park GIS portal to evaluate factors such as connectivity to major roads and ports, availability of utilities, sector-specific facilities, and the overall suitability of the park for the MSME’s products and long-term growth plans. 

2. Engaging state industrial development corporations: These agencies offer concessional land, tax-linked incentives, and on-ground support services that simplify the process of setting up or expanding a unit within the park. for incentives, concessional land, and support services.

3. Securing financial support: RBI-regulated NBFCs such as Protium can provide MSMEs with access to the capital needed for land preparation, machinery installation, and working capital, ensuring operations begin smoothly without cash-flow disruptions.to cover setup costs, machinery purchases, and working capital needs.

4. Joining cluster-level associations: This provides advantages such as collective marketing opportunities, export facilitation, technology-sharing platforms, and access to training programs that strengthen workforce capabilities.for joint marketing, exports, technology adoption, and workforce development.

5. Choosing parks that emphasise sustainability: Parks offering renewable energy options, common effluent treatment systems, and zero-liquid discharge facilities enable MSMEs to meet both compliance requirements and emerging ESG expectations.

The rise of industrial parks and zones can especially be seen in states like Gujarat, Maharashtra, and Tamil Nadu, with more states building sector-focused and next-generation industrial parks.  

For instance, Karnataka is emerging as one of the most active states in expanding sector-specific industrial parks, giving MSMEs direct entry into high-growth manufacturing clusters. Under the ‘Invest Karnataka’ programme, the state has announced a new network of parks dedicated to food processing, textiles and apparel, automobiles, EVs, and electronics, with multiple locations already identified for rapid development. The state is also strengthening its position as a national leader in EV and auto components, supported by upcoming clusters in regions such as Kolar, Hubballi–Dharwad, and Mysuru, where land parcels and plug-and-play units are being readied for MSME participation.  

Complementing this physical expansion is Karnataka’s strong talent and technology base, along with its status as one of the top digitally mature states and as home to 500+ GCCs, creating a unique environment where manufacturing and innovation converge. For MSMEs, this translates into easier access to skilled workers, R&D linkages, and markets across both domestic and export supply chains.