Emerging industrial cluster in India – Ahmedabad, Vadodara and Surat

August 21, 2012 / By  

With 24-hour power supply, Special Investment Regions (SIRs), closely knit all-weather roads and proactive government support, the state of Gujarat has evolved as one of the key industrial investment destinations of India. The proposed Delhi Mumbai Industrial Corridor (DMIC) and Mumbai Ahmedabad Bullet Train projects are expected to fuel this development even further. DMIC connects three prime cities, namely Ahmedabad, Vadodara and Surat, which will form the key growth nodes of an industrial cluster development in the coming years. DMIC will make large tracts of land along the corridor available for industrial and other real estate development purposes in the form of Investment Regions and Industrial Estates. In this blog let me discuss how these cities will eventually cluster together and experience an integrated industrial development.

Ahmedabad, with textile manufacturing as its major industry, is emerging as an automobile-manufacturing hub with the onset of Tata Nano Car (world’s cheapest car) plant and investments by Peugeot, Ford and Maruti Suzuki to start their manufacturing facility. Although most of the development in Ahmedabad is currently focused towards the western part of the city, the major roads NH8 and NE1 will be the emerging growth corridors as they will connect to Mumbai and Vadodara. It is also proposed that the Ahmedabad – Dholera Special Investment Region will be developed along the DMIC. These developments will slowly merge with Vadodara to form the second node of the cluster.

Vadodara’s economy is driven by the chemicals, petrochemicals, pharmaceuticals and biotechnology industries. The NE1 or Ahmedabad – Vadodara Expressway in the north of Vadodara has reduced the travel time from Ahmedabad to one hour. Moreover another expressway is proposed from Vadodara to Mumbai. These will drastically improve the connectivity of Vadodara with these cities and surge the development of Vadodara. Biotechnology and petrochemicals sectors will be the sectors to invest in Vadodara in future. The Ajmer Road on the east of Vadodara connects to Surat, which is the third node of the cluster. Surat is the world’s diamond city with more than 90% of the world’s diamonds cut and polished there. It has been proposed that the Surat Navasari Industrial Area be developed along the DMIC which will pass through eastern Surat. The developments along these road networks will eventually merge these two cities.

Urbanisation along the DMIC will merge these three cities into an important industrial cluster. This cluster is expected to attract large investments due to the business-friendly environment created by the DMIC with support from the state government. The industrial development will cascade other real estate developments such as integrated townships. Moreover, improved connectivity will allow easy access to the manpower and land needed for industrial setups. Overall this cluster is expected to emerge as a prime industrial cluster of Gujarat and India due to its excellent infrastructure and good governance. JLL has already started operations in Ahmedabad assured by these promising developments and I am sure we will make our contribution towards development of Gujarat while growing by leaps and bounds in that state.

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