Creating smart industrial corridors in India: Need for innovative policy approaches

India’s impressive growth needs to be accompanied by significant job creation to ensure that its benefits flow to the widest possible sections of society. State governments in India should frame long term policies for setting up “smart” manufacturing corridors or zones, especially focused on Micro, Small and Medium Enterprises (MSMEs) with the aim of generating millions of jobs, absorbing surplus labor from agriculture, boosting exports, and accelerating GDP growth. This article suggests measures for creating vibrant and innovative industrial belts. It emphasizes upon the need for creating systematically planned industrial zones with adequate provision of health facilities, high-quality centers of vocational education, availability of finance and raw materials, and so on. In addition to such zones, micro clusters of manufacturing enterprises should be set up in rural hinterlands to offer diversified growth and opportunities for employment across skill levels. Thus, this article presents a roadmap for balanced and sustainable growth and should be of interest to policymakers and academicians alike.