Integrated Manufacturing Hubs are planned manufacturing zones with plug and play infra and co-located shared utilities, regulatory support, multimodal connectivity, suppliers, etc.

• This policy transition aims to transform the manufacturing sector, which currently contributes around 16–17% of GDP and employs approximately 27 million workers, with the goal of increasing its share to 25% of GDP and supporting the vision of a $30–35 trillion economy by 2047.

How can Integrated Manufacturing Hubs boost manufacturing?

• Competitiveness: Co-location reduces transaction costs and enables firms to achieve economies of scale.
• Global Value Chains (GVC) integration: Competitive clusters attract FDI and drive exports; 
  • E.g. China’s Greater Bay area generates 35% of its exports while occupying less than 1% of land. 
• Innovation: When multiple firms operate together alongside R&D centers, technology and skilled labor transfer naturally among them.
• MSME Integration: Clusters help MSMEs (accounts 35.4% of mfg. output) overcome technology gaps and supply-chain limits via networks and shared facilities.
• Ease of Doing Business: by providing plug-and-play infrastructure, decentralised regulatory clearances, and co-located services

Current Challenges 

• Small cluster size: Often lack sufficient land for large-scale operations.
• Lack of robust multimodal connectivity in many clusters, inhibiting GVC integration.
• Regulatory rigidity: Strict labor, building, and business norms deter global firms seeking speed and predictability.