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Manufacturing • Tier 2 & 3 Cities • DPIIT Strategy • Economic Vision 2047
India Shifts Manufacturing Focus to Tier 2 & 3 Cities: 100-City Vision by 2026
The Government of India is embarking on a transformative journey to boost manufacturing by decentralising industrial activity into Tier 2 and 3 cities. This ambitious strategy, anchored by the Department for Promotion of Industry and Internal Trade (DPIIT), seeks to unlock economic potential in underutilised urban regions and significantly raise the manufacturing sector’s contribution to Gross Value Added (GVA).
🧭 Strategic Framework and Goals
- Target: 1,039 towns
- Mandate: Develop a ‘City Level Economic Vision’ for 100 selected cities by June 2026
- Announced during the Fourth National Conference of Chief Secretaries
- Aligns with the long-term Viksit Bharat @2047 vision
🏙️ Why Tier 2 and 3 Cities Matter
- Affordable workforce and demographic dividend
- High potential for industrial expansion
- Offers opportunity to decongest existing industrial hubs
🔧 Tailored Approaches for States
- Low-GSDP states: Focus on capital-efficient and labour-intensive industries
- High-GSDP states: Prioritise high-tech, R&D, and innovation-driven sectors
- Emphasis on leveraging local advantages
🛠️ Key Enablers for Growth
- Industrial Infrastructure
- 100 plug-and-play parks by Dec 2025
- Flexible land lease policies
- Logistics & Connectivity
- State Logistics Action Plan by June 2026
- City Logistics Plans for 25 cities by Dec 2026
- Ease of Doing Business
- Revamp single-window systems
- Cut compliance burden by Dec 2025
- Skilling & Entrepreneurship
- Conduct skill gap analyses
- Launch 100 new start-up incubation centres by Dec 2029
📊 Employment Growth Targets
- Increase manufacturing employment share from 12% to 22% by 2047
- Address the long-standing stagnation since 1972–73
- Leverage decentralised job creation in growing urban clusters
🏁 Timeline Highlights
| Deadline | Milestone |
|---|---|
| Dec 2025 | Plug-and-play parks, land lease & EoDB reforms |
| June 2026 | City Economic Vision & State Logistics Plans |
| Dec 2026 | City Logistics Plans for 25 cities |
| Dec 2029 | Start-up incubation centres completed |
🧩 Conclusion: A Blueprint for Manufacturing-Led Growth
This initiative represents a critical pivot in India’s economic planning. By empowering Tier 2 and 3 cities with infrastructure, logistics, governance reforms, and skill development, the government hopes to spark a new wave of inclusive growth in the manufacturing sector.
If implemented effectively, this strategy could redefine India’s industrial geography—from clustered hubs to a nationwide manufacturing grid.
