Lok Sabha Question No. 475 (UNSTARRED), answered on 2026-02-03
Subject: Limited Industrial Investment in Non-Metro and Semi-Arid Districts
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Dharambir Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 475.

TO BE ANSWERED ON TUESDAY, THE 03 RD  FEBRUARY, 2026.

## LIMITED INDUSTRIAL INVESTMENT IN NON-METRO AND SEMI-ARID DISTRICTS

## 475.   SHRI DHARAMBIR SINGH:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether industrial investment remains concentrated in select regions;
- (b) whether district-wise industrial gap analysis has been conducted;
- (c) whether infrastructure constraints deter investors from semi-arid districts;
- (d) whether incentives exist for industries in backward regions;
- (e) whether single-window clearance systems are effective at district level; and
- (f) whether  Bhiwani-Mahendragarh  will  be  included  under  targeted  industrial promotion initiatives to attract manufacturing, generate employment and ensure balanced regional growth and if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (e): The primary  responsibility  of  developing  the  industrial  sector  rests  with  State Governments.  States  adopt  different  policy  measures  to  promote  industrial development. The Union Government supplements efforts of State Governments to promote industrialization and provide an enabling eco-system for the overall development of industrial sector through various schemes such as the Scheme Industrial Scheme, Integrated  Manufacturing  Cluster  (IMC)  under  National  Industrial  Corridors,

for Investment Promotion, Ease of Doing Business (EoDB), Infrastructure Upgradation Scheme, Product Linked Incentive Startup India etc.

Government of India is developing various Industrial Corridor Projects as part of National Industrial Corridor Development Programme (NICDP) which is aimed at development  of  greenfield  industrial  areas/region/nodes  in  India  which  can compete with the best manufacturing and investment destinations in the world.

Till date Government of India has approved the development of 20 projects under National Industrial Corridor Development Programme (NICDP).

Industrial parks have emerged as a principal vehicle for accelerating the country's industry and innovation agenda. Developed in partnership with state governments and the private sector, these parks are reinforcing India's industrial base  by  promoting  investment,  progress-driven  development,  and  economic ascendancy.  They  stimulate  employment  generation  while  also  encouraging sustainable development. There are currently 306 plug-and-play industrial parks in India, and an additional 20 plug-and-play industrial parks and smart cities are being developed under the National Industrial Corridor Development Corporation (NICDC).

AURIC (Shendra-Bidkin Industrial Area) in Chhatrapati Sambhajinagar, Maharashtra  recently  marked  its  sixth  anniversary,  celebrating  a  journey  of industrial  progress,  global  investments,  and  sustainable  growth.  It  is  one  of India's  first  Greenfield  Industrial  Smart  Cities  developed  under  the  National Industrial Corridor Development Programme (NICDP). The region is supported by  multi-modal  connectivity,  including  the  Samruddhi  Mahamarg,  proposed Sambhajinagar-Pune Greenfield Expressway, Jalna Dry Port, and proximity to Aurangabad Airport and major rail links. These connectivity initiatives, aligned with PM GatiShakti, enhance logistics efficiency and make AURIC a competitive investment hub.

The  Government  of  India  has  launched  several  region-specific  initiatives  to ensure balanced industrial growth in backward, hilly, remote, and strategically important regions namely:-

- (i) UNNATI  (Uttar  Poorva  Transformative  Industrialization  Scheme) :  The Scheme  was  launched  on  09 th   March,  2024  for  extending  support  to  the Industries for enhancing regional infrastructure, create employment opportunities, and promote resilience and prosperity in the region. Under the UNNATI Scheme, the following incentives are provided to the industrial Units:-
-  Capital Investment Incentive (CII)
-  Capital Interest Subvention (CIS)
-  Manufacturing & Services linked incentive (MSLI)
- (ii)   Four New Components under the existing Central Sector Scheme of Special Development Packages (SDPs) for Assam and Tripura was approved by the Cabinet in August 2025 with a total outlay of Rs.4,250 crore. It will improve the socio-economic condition of vulnerable & marginalized groups of people who have  not  benefited  adequately  from  various  existing  Government  schemes, boost employment opportunities, provide health services, promote education and skilling and income through livelihood activities for youth and women; and

increase  inflow  of  tourists  from  other  parts  of  the  country,  thereby  creating additional employment and livelihood opportunities for the people of the North Eastern Region.

- (iii)  The  Government  of  India  has  notified  the New  Central  Sector  Scheme (NCSS),  2021 for  Industrial  Development  of  Union  Territory  of  Jammu  and Kashmir with financial outlay of ₹28,400 Crore for encouraging new investments.  The  incentives  being  provided  under  New  Central  Sector Scheme(NCSS) are as under:
-  Capital Investment Incentive (CII)
-  Capital Interest Subvention (CIS)
-  Goods & Services Tax Linked Incentive (GSTLI)
-  Working Capital Interest Subvention (WCIS)

Government  of  India  has  taken  several  measures  to  promote  the  growth  of manufacturing sector and create more employment opportunities. 'Make in India' initiative was launched on 25 th  September 2014 to facilitate Investment, foster Innovation,  build  best  in  class  Infrastructure,  and  make  India  a  hub  for manufacturing, design, and innovation. Presently, Make in India 2.0 focuses on 27  sectors  including  15  manufacturing  sectors,  implemented  across  various Ministries and Departments and State Governments. The list of sectors under Make in India 2.0 is enclosed at Annexure I .

To further the Make in India initiative, Government of India has announced the National  Manufacturing  Mission  (NMM)  in  the  Union  Budget  2025-26  with  an outlay of ₹ 100 crore. The Mission will lay emphasis on five focal areas i.e. ease and cost of doing business; future ready workforce for in demand jobs; a vibrant and dynamic MSME sector; availability of technology; and quality products.

Further,  keeping  in  view  India's  vision  of  becoming  'Aatmanirbhar'  and  to enhance  India's  manufacturing  capabilities  and  exports,  Production  Linked Incentive (PLI) schemes have been launched for 14 key sectors with an outlay of  Rs.  1.97  lakh  crore.  These  schemes  have  the  potential  of  significantly boosting production, increasing manufacturing output and contributing to faster economic  growth  in  future.  The  purpose  of  the  PLI  Schemes  is  to  attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive. These schemes have the potential of significantly boosting production, employment and economic growth over the next five years or so. PLI Schemes have resulted in an employment generation  of  over  12.60  lakhs  (direct  and  indirect).  The  PLI  Schemes  have received 806 applications across all 14 sectors from various parts of the country including semi-arid districts and backward regions. PLI Schemes have resulted in an employment generation of over 12.60 lakhs (direct and indirect).

The  other  major  initiatives  include  Start-up  India,  National  Single  Window System, GIS enabled Land Bank, Foreign Direct Investment (FDI) policy reforms, PM  Gati  Shakti  National  Master  Plan  for  integrated  planning  of  multimodal infrastructure, Project Monitoring Group to remove bottlenecks in setting up of major  infrastructure  projects,  setting  up  of  industrial  parks,  interventions  to improve ease of doing business, measures for reduction in compliance burden, rationalization of labor laws, introduction of Goods and Services Tax, reduction in  the  corporate  tax  rate,  policy  measures  to  boost  domestic  manufacturing through public procurement orders, Phased Manufacturing Programme (PMP) and Quality Control Orders (QCOs), to name major ones.

The Government of India has actively engaged in improving the Ease of Doing Business environment in the entire country. To enhance the business atmosphere in India, attract investments, stimulate economic growth and to foster a regulatory framework that is business- friendly, Central Government has taken several  initiatives  under  the  Ease  of  Doing  Business  initiative  which  includes Business  Reform  Action  Plan  (BRAP),  the  Business-Ready  assessment,  Jan Vishwas and Reducing Compliance Burden on Businesses and Citizens.

To facilitate a single interface for investors, DPIIT has promoted the adoption of National Single Window Systems (NSWS) by States and Union Territories. The portal accessible through nsws.gov.in, is a one-stop digital platform for facilitating Government to Business (G2B) approvals and investor-related clearances for the industry.  It  streamlines  the  G2B  approvals  process  by  creating  information symmetry and minimizing the need to visit multiple Departmental portals.

Further, the Business Response Action Plan (BRAP) initiative was launched by the  Department  in  2014  aiming  to  promote  transparency,  simplify  regulatory procedures, and enhance service delivery across all the States and UTs, thereby cutting down on time and costs for businesses.

Recognizing that businesses often interact with district-level institutions, the need to  extend  EoDB  reforms  to  the  grassroots  level  was  emphasized  during  the National Conference of Chief Secretaries held in December 2024. In response, DPIIT has launched the District Business Reform Action Plan (DBRAP)-a Stateled initiative aimed at localizing BRAP at the district level. DBRAP is designed to strengthen  last-mile  delivery,  improve  service  quality,  and  accelerate  regional development by equipping districts with robust institutional and digital infrastructure. These reforms will be implemented across District Collectorates, Development Authorities, and Urban Local Bodies, which play a critical role in regulatory approvals, inspections, and business facilitation.

Under DBRAP, Reforms 1-43 require that all identified services at the district level be delivered end -to -end through an online system, covering every stage of the business lifecycleregistration, renewal, transfer, amendment,  and cancellation or surrender-without any physical touchpoints. These services are to be provided through the State Single Window System. In addition to these 43 services, the Single Window Guidebook issued by DPIIT in June 2025 identifies 80 additional services that all States and Union Territories are mandated to make fully  online,  further  strengthening  the  effectiveness  of  the  Single  Window ecosystem including at the district level.

To ensure timely service delivery, services not already covered under the Public Service Guarantee (PSG) Act or equivalent legislation are required to be notified with  clear  timelines.  District  authorities  are  responsible  for  ensuring  that  all applications  are  processed  strictly  within  these  prescribed  timelines  while coordinating with relevant State Government departments to achieve seamless implementation.  Although  the  district's facilitation  role  is  common  across services, evidence of compliance must be maintained and submitted separately for each service and approval type.

Together,  these  measures  are  aimed  at  improving  transparency,  reducing physical interface, enhancing predictability, and ensuring efficient and uniform service delivery for businesses at the district level through an effective Single Window Clearance System.

- (f): The Government of India, under the National Industrial Corridor Development Programme (NICDP) and Delhi-Mumbai Industrial Corridor (DMIC), is developing  an  Integrated  Multi  Modal  Logistics  Hub  (IMLH)  in  Mahendragarh district,  Haryana,  through  a  joint  venture  SPV-NICDC  Haryana  Multi  Modal Logistic  Hub  Project  Limited  (GoI-NICDIT  and  Govt.  of  Haryana-HSIIDC). Approved in May 2018, the project aims to develop a world-class freight village on PPP mode, leveraging traffic from the Western Dedicated Freight Corridor and northern  states.  The  hub  will  support  rail-based  freight  with  high-capacity operations  and  offer  container  handling,  warehousing  (bonded  and  general), maintenance yards, and value-added services such as packaging, labeling, and assembly.

Upon completion, the project is expected to deliver significant economic benefits, including projected employment generation of over 4000 direct and 6000 indirect jobs  across  the  logistics  ecosystem,  reduced  logistics  and  fuel  costs,  lower pollution and accident rates, increased exports, and higher state tax revenues.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA UNSTARRED QUESTION NO. 475 FOR ANSWER ON 03.02.2026.

## Manufacturing Sectors

- i. Aerospace and Defence
- ii. Automotive and Auto Components
- iii. Pharmaceuticals and Medical Devices
- iv.  Bio-Technology
- v. Capital Goods
- vi.  Textile and Apparels
- vii.  Chemicals and Petro chemicals
- viii. Electronics System Design and Manufacturing (ESDM)
- ix.  Leather & Footwear
- x. Food Processing
- xi.  Gems and Jewellery
- xii.  Shipping
- xiii. Railways
- xiv. Construction
- xv.  New and Renewable Energy

## Service Sectors

- i. Information Technology & Information Technology enabled Services (IT &ITeS)
- ii. Tourism and Hospitality Services
- iii. Medical Value Travel
- iv. Transport and Logistics Services
- v. Accounting and Finance Services
- vi. Audio Visual Services
- vii. Legal Services
- viii.  Communication Services
- ix. Construction and Related Engineering Services
- x. Environmental Services
- xi. Financial Services
- xii. Education Services