Industrial Parks: Network & Infrastructure Schemes Explained for UPSC
Q. With reference to India’s industrial infrastructure, consider the following statements regarding the India Industrial Land Bank (IILB):
1. It is a GIS-enabled platform developed by the National Industrial Corridor Development Corporation (NICDC).
2. As of December 2025, it maps over 4,500 industrial parks with approximately 7.70 lakh hectares of total land area.
3. It allows investors to remotely evaluate land parcels based on infrastructure and connectivity data.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Context
Industrial parks have emerged as a primary vehicle for accelerating India's industrial and innovation agenda. With over 4,500 parks mapped across 7.70 lakh hectares, they form the institutional foundation for achieving a globally competitive industrial economy.
Overview of India's Industrial Land
The India Industrial Land Bank (IILB), a GIS-enabled platform developed by the DPIIT, serves as a one-stop repository for industrial land information.
Key Statistics (as of Dec 2025):
- Total Mapped Parks: 4,523
- Total Area: 7.70 lakh hectares
- Land Available: 1.35 lakh hectares
- Total Plots: 6.45 lakh+ (with 1.25 lakh plots vacant)
Key Government Initiatives
1. Plug-and-Play Industrial Parks
The Union Budget 2025-26 allocated ₹2,500 crore for these parks. Designed to be industry-ready with integrated utilities, they allow firms to start operations immediately.
- Current Status: 306 parks operational; 20 additional parks/smart cities being developed under the National Industrial Corridor Development Corporation (NICDC).
2. Industrial Park Rating System (IPRS)
A comprehensive framework assessment assessing parks across four pillars.
- IPRS 2.0 Results: 41 parks classified as 'Leaders', 90 as 'Challengers', and 185 as 'Aspirers'.
- IPRS 3.0 (Launched Sept 2025): Expanded focus on sustainability, green infrastructure, logistics connectivity, digitalization, skill linkages, and tenant feedback.
3. Ease of Doing Business (EoDB) Reforms
- National Business Reforms Action Plan (BRAP), 2014: Focus on single-window systems and inspection reforms.
- Compliance Reduction: Decriminalized 3,700 legal provisions and reduced 42,000+ compliances.
- ODOP (One District One Product): Promoting district-specific products.
Economic Impact and FDI
India ranks among the world's top 5 destinations for greenfield project investments (UNCTAD 2025 report).
- FDI Inflows: Reached USD 43.76 billion during April-August 2025-26 (up from USD 37.03 billion in the previous year).
- Core Role of Parks: Enhancing industrial performance, deepening global value chains, and integrating India into global manufacturing networks.
Significance for UPSC
Industrial parks are essential for transitioning toward a circular and green economy. They facilitate:
- Productivity Gains: By integrating production factors within defined zones.
- Self-Reliance: Alignment with Atmanirbhar Bharat strategies.
- Net Zero Goals: Integrating sustainability and green standards into industrial planning.
🎯 Analysis & Insights
Prelims mastery
Correct Answer: (b) 2 and 3 only.
Reasoning: The IILB was developed by the Department for Promotion of Industry and Internal Trade (DPIIT), not the NICDC (Statement 1 is false).
Mains perspective
"Industrial parks in India have shifted from mere land repositories to integrated ecosystems driven by sustainability and plug-and-play efficiency." In light of the IPRS 3.0 framework, critically analyze the role of these parks in making India a global manufacturing hub. (150 words)