International Journal of Economics, Commerce and Management Research Studies

Volume 1, Issue 2, September - 2018

Industrial Corridors and its Impact on Make in India

with Special Emphasis towards BMEC
Prashant R. Kamble
Bharatesh College of Business Administration,
Tumkur University, Karnataka, India.
.
Abstract:- Driven by innovation and Investment, India is
acquiring another change in perspective in its
industrialization travel sponsored by new industrial
corridors. Despite the fact that trade routes and harbors
assumed an essential part in the first place, when
industrialization was norm of the day, the Second World
War truly advanced industrial improvement bolstered by
'segregating security' which thrived cotton materials,
sugar and iron and steel ventures. Make in India and
Industrial corridors are a synonym for Investing and
Industrialization. This paper focus on how industrial
corridors play a important role in shaping up Make in
India and skilling India with special reference to BMEC.
Keywords:- Make in India, Corridors BMEC, DMIC, Skilling
India.
I. INTRODUCTION
A prehistoric country like India has experienced
numerous developmental phases. A much appreciated and
matchless quality of the ancient India in the field of Science
and innovation requires no specification. However, with
modernization in current times, numerous western countries
have outperformed India in terms of Science and innovation.
Having said that, India is gradually rising back to gain its
administrable position. On 24th September 2014, India entered
another period of authority with its Mars Mission effectively
entering the circle with a cost which was one tenth of the cost
Dr. Noor Afza
Associate Professor, Tumkur University,
Karnataka, India
of Mars venture by NASA. This assured India's capacity to
convey on cost, quality and time. This group of three is the
key element of source for the accomplishment of a nation.
India's manufacturing sector has been lagging behind
and it is now an opportunity to concentrate on this particular
segment. India basically needs to center around its
manufacturing activities with IT based administrations to offer
arrangements which help the most basic sections of the
economy. A bright manufacturing sector is an amazing force
for overseas trades which is clearly visible from China’s GDP,
of which 40% comes directly from their manufacturing.
Around 75% of India's working inhabitants have just
studied till or below middle school. This shocking figure of
around 600 million individuals isn't even prepared for the
openings provided by the booming tertiary sector. It is only
the labor intensified manufacturing sector which has the
ability to provide employment in satisfactory numbers to such
a huge numbered work pool.
Indian manufacturing sector at present contributes near
to 15% of GDP which comparatively is only half of
"processing plant of the world" China, while tertiary sector
contributes about 60% to GDP. This enormous gap
considering the commitment towards GDP makes it very
important for India to focus more on the manufacturing and
bring it nearly up to 25% over a decade from now.

Contribution to GDP 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Agriculture forestry and Finishing 15.77% 14.64% 14.59% 14.37% 13.95% 13.94%

 Industry

Mining & Quarry 2.36% 2.3% 2.25% 2.11% 1.98% 1.86%

Manufacturing 15.78% 16.17% 16.17% 16.28% 15.76% 14.94%

Electricity, gas, water supply 2.0% 1.95% 1.89% 1.92% 1.88% 1.9%

Construction 7.99% 7.85% 7.62% 7.91% 7.66% 7.43%

Services 56.11% 57.09% 57.48% 57.42% 58.79% 59.93%

IJECMRS18SEP03 www.ijecmrs.com 5
 International Journal of Economics, Commerce and Management Research Studies
II. SKILLING INDIA
In the present period of globalization and technologically
transformed world, skill building is an important equipment to
support the effectiveness and the nature of administrations for
the propelled profitability and monetary development. India is
today one of the most youthful countries on the planet with
over 62% of the population in the working age gathering (15-
59 years), and over 54% of the aggregate population under 25
years old. Remunerations like “demographic dividends” can
be rewarded only with gifted workforce. Clearly, apart from
taking care of its own demand, India can possibly turn into the
overall center point for outsourcing skilled labor.
Government has demonstrated great responsibility
towards developing skilled individuals by designating
generous amount towards skill education, forming a National
Policy on Skill Development in Education, 2009, and making
empowering establishments like, Prime Minister's National
Council on Skill Development and National Skill
Development Corporation. On the other hand, to accomplish
the objective of skilling 500 million individuals by 2022 it is
essential that the empowering foundations keep concentrating
on the standards set down in the arrangement, particularly
those known for skilling the underprivileged. The subsequent
measures may be taken into consideration from an
arrangement point of view.
An important aspect for the accomplishment of skill
building programs at the grass roots, has been the act of
considering and including life skill training, inside all skill
development programs. This guarantees learners who are
finishing any sort of skill building are also prepared with
fundamental abilities of life skills. Skills and knowledge are
main ingredients for the growth of any nation be it
economically or socially. Nations with higher and better
abilities of skills are more comfortable taking up challenging
difficulties and chances of universe of work. It is a one of a
kind venture for outfitting the nation's statistic profit.
The challenge lies not just in a vast quantitative
extension of facilities for skill training, but in addition also to
raise their quality. India would be the worldwide sourcing
center point for talented employees. The globalized world asks
for skilled employees to change over development openings
into employments and stable earnings. With a huge number of
new employment entering the job market skill development
has turned out to be one of India’s major needs. Skills and
knowledge in India needs to move from being qualification
based to skill based. Skills and knowledge advancements are
the main reasons behind the financial growth and network
improvement of any nation. Skill building is an effective tool
to enable people and enhance their social acknowledgment
A. Industrial Development Scenario in DMIC States
Macro level analysis for industrial development scenario
shows that about 45% of country’s registered factories
IJECMRS18SEP03 www.ijecmrs.com
Volume 1, Issue 2, September - 2018
(129,704), catering to an employment of 3.36 Million sizes,
are located in DMIC states. Moreover, about 1.234 Million
registered small scale industries, constituting 46% of overall
country, are located in DMIC states. It has also been analyzed
that about 52% of registered factories and corresponding
employees are based in Maharashtra and Gujarat states,
indicating the magnitude of industrialization in these states. In
terms of Gross Industrial Output and Export trends, DMIC
states together constitute 56% of nation’s industrial output
(INR 12,874 billion) and 62% of nation's aggregate exports
(INR 4564 billion) in 2005-06. It is essential to note that,
Maharashtra and Gujarat together contribute 61% of gross
industrial output and 72% of exports amongst the DMIC
states.
B. The Delhi-Mumbai Economic Corridor
The Delhi-Mumbai Industrial Corridor being a mega
infra-structure project of USD 90 billion (Rs. 4, 23,000crore)
with financial & technical support from Japan, covering a
stretch of 1483 KMs from the political capital to the business
capital of India, i.e. Delhi and Mumbai. This project
incorporates Nine Mega Industrial zones of about 200-250 sq.
km., high speed freight line, three ports, and six airports, a six-
lane intersection-free expressway connecting Mumbai & Delhi
and a 4000 MW power plant. Various industrial estates,
clusters and industrial hubs are planned to be developed along
this corridor to attract more foreign investment.
C. Bengaluru Mumbai Economic Corridor (BMEC) -
The manufacturing companies within the state under the
influence area of BMEC will be approached. The Bengaluru-
Mumbai Economic Corridor (BMEC) venture instigated in
February 2013 in association with the United Kingdom. The
1,000 km corridor would attract upgrade investments in
manufacturing sector and would lead to increased industrial
activity in the states of Maharashtra and Karnataka. The
corridor will start from Bengaluru, passing through Tumkur,
Chitradurga, Hubli, Dharwad and Belgaum (in Karnataka),
Kolhapur, Sangli, Satara, Karad and Pune, and end in Mumbai
(in Maharashtra).The BMEC will be developed on the model
of the DMIC. The Union government has appointed the
DMICDC as the nodal agency for the development of the
project. The actual project work it expected to begin in the
year 2015.
D. BMEC and Make in India
In the Bangalore-Mumbai corridor, the industrial areas
that would be covered include Vasanth Narasapura (Tumkur),
Bharamasagara (Chitradurga), Shimoga, Savanur (Hubli),
Haveri, Kushtagi-Gadag, Yelburga (Gadag), Belur (Dharwad),
Hukeri (Belgaum), Navanagara (Bagalkot).
The BMEC’s main objective is to incorporate agrarian
economy to manufacturing through agro processed industries
which will enhance employment opportunities to the nearby
local population through identified employment intensive
6
 International Journal of Economics, Commerce and Management Research Studies
industries such as textile, agro & food processing, engineering,
etc.
In the Bangalore-Mumbai corridor, the industrial areas
that would be covered include VasanthNarasapura (Tumkur),
Bharamasagara (Chitradurga), Shimoga, Savanur (Hubli),
Haveri, Kushtagi-Gadag, Yelburga (Gadag), Belur (Dharwad),
Hukeri (Belgaum), Navanagara (Bagalkot).
The BMEC’s main objective is to incorporate agrarian
economy to manufacturing through agro processed industries
which will enhance employment opportunities to the nearby
local population through identified employment intensive
industries such as textile, agro & food processing, engineering,
etc. The region has high intensity with respect to agro
products. Maharashtra tops the list for its fruits cultivation in
the country, where in Sangli is one of the leading grape
producing districts.
Karnataka’s Bedgi chilly is one of the hottest chilli
species being produced, known for its oil extracts used which
is used as a base for various products. In Kolhapur & Belgaum
sugarcane cultivation seems to be very prominent as a result of
various sugar industries. Thus, demand based development of
agro processing industries with establishment of world class
infrastructure, which would open widespread opportunities for
agriculture produce & agro processed products, to the regional
& foreign markets, remained as the primary focus of the
Industrial based economic development of BMEC, which
complements & enhances the existing agriculture base of the
region.
India has emerged as one of the key sourcing
destinations for agri–based raw materials required for
Nutraceutical industry. For the development of Nutraceutical
industries around six districts of BMEC region have been
identified. In BMEC accounts, Agro processing sectors share
is of 14% of the total investment in BMEC region, with an
expected employment more than 1 million jobs and a turnover
of approximately USD 31,000 million by 2040-41
E. Impact of BMEC on Make in India
The BMEC is trying to create a strong economic
foundation with a globally competitive environment and state-
of-the-art infrastructure to stimulate local commerce, boost
investments and attain sustainable development. The next 2 to
3 decades of the India’s economic growth and the pressure of
urbanization will be met and led by the new BMEC cities.
The project aspires to double employment potential,
triple industrial output and quadruple exports from the region
in the next seven to nine years.
Overall Make in India and BMEC is like a movement
reflecting a new outlook of development in India, which in the
coming years will drive India's growth story with a new
horizon. India has been a reluctant towards urbanization but
IJECMRS18SEP03 www.ijecmrs.com
Volume 1, Issue 2, September - 2018
this can be a huge advantage for us today as we can inculcate
technology in our vision for smart cities. There is a new
enthusiasm, liveliness and dynamism in India and very soon it
may be transformed into reality. Make in India with Skill India
or Make in India only as a Policy is a question that has to be
answered.
III. CONCLUSION
Industrial Corridors play an important role in shaping up
the economy. With these projects in hand at the disposal the
main goal is to boost the employment potential to two-fold,
increase industry output by four times at the current rate and
increase the exports by five times from the region. This will
increase the overall health of the economy.
REFERENCES
[1]. The Economic Times. Labour costs in India is lowest in
the world, 2015. Retrieved from
www.articles.economictimes.indiatimes.com:
http://articles.economictimes.indiatimes.com/2015-14-
12/news/27492532_1_costs-labour-belgium.
[2]. Mehra P. Make in India vs. Make in China, 2014.
Retrieved from www.thehindu.com:
http://www.thehindu.com/sunday-anchor/sundayanchor-
make-in-india-vs-make-inchina/article6533575.ece.
[3]. Prakash P. What are the advantages and disadvantages of
Make In India. 2015, Retrieved from www.quora.com:
https://www.quora.com/What-are-theadvantages-and-
disadvantages-of-Make-In-India.
[4]. Shiv kumar G. India is set to become the youngest
country by, 2013, 20-20. Retrieved from
http://www.thehindu.com/:
http://www.thehindu.com/news/national/india-is-set-
tobecome-the-youngest-country-
by2020/article4624347.ece.
[5]. Tripathi R, Shastri R, Yadav N. Make in India through
Unorganized Manufacturing Sector: SWOT Analysis.
International Journal of Applied Research. 2015, 166-
169.
7