Pan-India

Location Analysis
Top established and emerging
destinations for manufacturing sectors

Qutub Minar, New Delhi

Exploring India’s Manufacturing Destinations 31
 Certain sectors in India have emerged
as hotbeds for FDI in the last few
years. The manufacturing activity in
these sectors is located not only across
established traditional manufacturing
hubs but is also spreading to some new
and upcoming industrial areas, which
are joining the list of manufacturing
hotspots for the sector.
INDIA: THE EMERGING
MANUFACTURING POWERHOUSE
Manufacturing Seedbed: India is among the top 10
countries with the highest industrial output
Continuous Pro-Investor Reforms: India has
jumped 79 ranks in The World Bank’s “Ease of Doing Business” rankings
during the period 2015-2020
(2015: Rank 142, 2020: Rank 63)

TOP SECTORS BY FDI INFLOW

FY 2015-19
FDI USD $ bn
Sector FDI Limits
(% of total)

Computer Hardware & Software 24.4 (12.06%) 100% under Automatic Route

Telecommunications 18.7 (9.22%) 49% under Automatic Route; Government route beyond 49%

100% under Automatic Route for construction development and

Construction (Infrastructure) 12.2 (6.04%)
industrial parks

Automobile 11.6 (5.72%) 100% under Automatic Route

Chemicals (other 100% under Automatic Route

6.9 (3.42%)
than Fertilizers) (except certain hazardous chemicals)
100% FDI under Automatic Route for generation from all sources (except
atomic energy), transmission and distribution of electric energy and
Power 5.4 (2.68%) Power Trading
49% under Automatic Route in Power Exchanges
100% under Automatic Route for tourism construction
Hotel & Tourism 5.2 (2.59%) projects, including the development of hotels, resorts, and
recreational facilities

100% under Automatic Route for renewable energy generation and

Non-conventional Energy 4.8 (2.38%)
distribution projects

Electrical Equipment 4.7 (2.33%) 100% under Automatic Route for electrical machinery

100% under Automatic Route – Greenfield

Drugs & Pharmaceuticals 4.4 (2.17%) 74% under Automatic Route – Brownfield; Government Route
beyond 74%
Excludes Services, Trading and Information and Broadcasting
Automatic Route: Under the Automatic Route, the foreign investor or the Indian company does not require any prior approval from the Reserve Bank or Government of India
Government Route: In this route, there is no investment without the prior approval of the Government of India.

32 Pan-India Location Analysis Pan-India Location Analysis 33

 OTHER NOTEWORTHY SECTORS PAN INDIA MANUFACTURING
ZONES SNAPSHOT
Electronics sector, a major driver of the Digital India Mission, is a thrust area of the
Government, as India looks to substitute imports by domestic production and strengthen it’s share of India Map with all 44 industrial zones identified in
global ESDM manufacturing. This is reflected in the growing FDI flows in the sector. the survey
100% FDI under Automatic Route except Defence electronics (49% under Automatic Route;
Government route beyond 49%

Engineering and Capital Goods Amritsar –

Jalandhar –
Engineering exports comprise 36% of India’s manufacturing-led exports and 25% of India’s Ludhiana
merchandise exports. The capital goods sector constitutes 12% of overall manufacturing in India.
Solan – Baddi
100% FDI under Automatic Route for Capital Goods Rudrapur-Dehradun-
Sonipat – Panipat Haridwar-Kashipur-Pantnagar

Nh 48 (Manesar – Noida-Greater
Neemrana) Noida-Yamuna Expressway
Jaipur Lucknow – Kanpur
Guwahati

Asansol –
Kandla – Mundra Durgapur

Ahmedabad Bhopal Ranchi

Indore Kolkata
Vadodara –
Bharuch
Haldia – Tajpur
Nagpur Durg – Bhillai
Surat – Hazira – Vapi Paradip
Aurangabad
Mumbai Pune
Hyderabad Visakhapatnam
Jaigad
Vijayawada

Hubli – Dharwad Anantpur

Tirupati – Sricity
Bengaluru
Chennai

Coimbatore –
Salem – Tirupur Industrial Location
Kochi – Industrial belt/ cluster
Trivandrum
Thoothukudi

34 Pan-India Location Analysis Pan-India Location Analysis 35

 CHEMICALS & PETROCHEMICALS
Market Size (FY18): USD $ 165 bn Policy Support:
Expected to be $304 bn by 2025 (CAGR: 9%) PCPIRs: 4 all over India
Total Production (FY18): 47.882 MMT  Plastic Parks: 10 all over India
(Alkali chemicals: 69%) Central Institute of Plastics
Engineering & Technology (CIPET):
36 all over India; 5 more upcoming

Region, State PCPIR?** Major Occupiers Port / Dry Port Connectivity Remarks
Gujarat Maritime Board
Old Port* Strategic Position: Within DMIC influence zone, as its situated
Marine Shipuilding Park* within 50 kms of the DFC

Yes. Most Captive Jetties Well established hub: RIL, OPaL, ONGC, GACL, Petronet
ONGC Petro additions LNG, BASF, ABG, Adani, Welspun, Godrej & Boyce, GAIL, GSPC,
Dahej, Gujarat successful Reliance Liquid Fuel Jetty*
Limited (OPaL) Pidilite, Grasim, NOCIL, China Steel among others
PCPIR project Birla Copper Bulk Cargo Jetty*

Private Ports Deep Sea Discharge Facilities available

Kandla
Mundhra
Adani Port* Dahej
Kolkata
Haldia
GCPTCL Liquid Chemical Terminal*LNG Petronet’s LNG port*
Mumbai Paradip
Established Hub for sectors including chemicals, JNPT
Rasayni - Patalganga
Patalganga Manufacturing petrochemicals, pharmaceuticals and textiles, among others. Visakhapatnam -
Patalgang,-Rasayani Mumbai Port (major port)* Mormugao - Goa Kakinada
No Division (PMD) of Reliance
(Maharashtra) NPT (major port)* Presence of players such as Cipla, Petronas, Castrol, Bombay
Industries Ltd. (RIL) Mangaluru Ennore
Dyeing, Alkyl Amines, Balaji Formalin etc. Chennai
Cuddalore
Kochi
Yes (PCPIR Major Ports
Chennai Petroleum Chennai Port (major port) Presence of players such as Tanfac Industries, Asian Paints, Tuticorin
identified), but Clusters
Cuddalore, Tamil Corporation Ltd. (CPCL) Ennore Port (major port) Bayer MaterialScience, Chemplast in Cuddalore, and
established
Nadu refineries at Chennai Kattupalli Port players such as Saint Gobain, Asahi in Sriperumbudur
chemicals cluster
outside PCPIR
and Nagapattinam Cuddalore Port* near Chennai.
SECTOR SNAPSHOT
Hindustan Petroleum
Corporation Ltd. (HPCL) led Vishakhapatnam Port (major port)* AP PCPIR covers 6 existing SEZs 9.9% Share of exports
consortium with Total, Oil Deep Sea Discharge Facilities available (excl. pharma) 2018-19
Gangavaram Port*
Vizag-Kakinada, India, Saudi Aramco and Gas Situated off Krishna-Godavri basin, a rich reservoir oil
Yes Kakinada Port*
Andhra Pradesh Authority of India Ltd. (GAIL); Krishnapatnam Port;
GMR is developing a greenfield captive port at Kakinada
and gas reserves.
7.99% Share of
existing Visakha Refinery manufacturing GVA 2017-18
(undergoing expansion)

Indian Oil Corporation Paradip Port (major port)* Exclusive Plastics Park at Paradip Gopalpur industrial area &
3rd Largest consumer of
Paradip, Odisha Yes polymers in world
Ltd. (IOCL) Dhamra Port SEZ in vicinity.

3rd Largest producer of

chemicals in Asia by volume;
6th in world

**PCPIR or Petroleum, Chemicals and Petrochemicals Investment Regions is and export led production, along with associated services and infrastructure.
Established Emerging *within 100 kms
a specifically delineated investment region with an area of minimum 250 sq. Each PCPIR would have a refinery/petrochemical feedstock company as an
km. planned for the establishment of manufacturing facilities for domestic anchor tenant.

36 Pan-India Location Analysis Pan-India Location Analysis 37

 AUTOMOBILE & AUTOMOBILE COMPONENTS
Market Size (FY19):
26.27 mn vehicles sold; 30.92 mn produced
Automobile Mission Plan 2016-26: USD $ 300 bn
industry by 2026 (world’s 3rd largest by volume)
Policy Support: To make India an EV Hub
FAME (Faster Adoption and Manufacture of
(Hybrid and) Electric Vehicles) Scheme
National Electric Mobility Mission Plan 2020

Region, State Major Occupiers Port / Dry Port Connectivity Highway Connectivity Remarks

Fiat, GM, Volkswagen, Mercedes-Benz, Tata Motors, Bajaj Auto, JLR, Mumbai Port (major port); NH48 (Delhi-Chennai) Maharashtra accounts for ~35%
Pune-Aurangabad,
Mahindra & Mahindra, Skoda Auto, Goodyear Tyres, Balkrishna Tyres, Duro JNPT (major port) NH65 (Pune-Machlipatnam) of India’s output of automobiles
Maharashtra
Valves, Force Motors, JCB, Sany, John Deere, Continental, Minda, Carraro ICD Dighi* Proposed Samruddhi Corridor by value.
Manesar-Gurgaon

Chennai- Part of Chennai and

Chennai Port (major port)* Kandla Sanand-Mandal-
Sriperumbudur- Hyundai Motor, Schwing Stetter, Daimler Commercial Vehicles, Renault- NH48 (Delhi-Chennai) surrounding areas, which are Mundhra
Ennore Port (major port)* Becharaji
Kolkata
Oragadam, Tamil Nissan, Yamaha Motors, Bharat Benz, Eicher, Ashok Leyland, BMW, Royal NH32 (Chennai-Nagapattinam) popularly nicknamed “Detroit Haldia
Kattupalli Port*
Nadu and SriCity, Enfield, Isuzu, Komatsu, Ford, TAFE, CEAT Tyres NH16 (Kolkata-Chennai) of India”, due to the large
Krishnapatnam Port Mumbai Aurangabad Paradip
Andhra Pradesh presence of auto industry. JNPT Pune
Visakhapatnam
Mormugao - Goa

ICD Gurugram (Garhi-Harsaru)* Mangaluru Ennore

Manesar- Home to the first and largest Chennai
Maruti Suzuki, Honda Motorcycle and Scooter, Suzuki Powertrain, Suzuki ICD Faridabad (ACTL)* Bengaluru
Faridabad- NH48 (Delhi-Chennai) plant of India’s largest
Motorcycle, Hero Motors, Mitsubishi Electric Automotive, Harley Davidson, ICD Rewari*
Gurugram, KMP Expressway automobile manufacturer – Kochi
Yamaha Motors, JCB, Ecorts Tractors, Minda ICD Patli* Tuticorin Major Ports
Haryana Maruti Suzuki. Clusters
ICD Ballabhgarh*

SECTOR SNAPSHOT
Kandla Port (major port) ~102 sq. kms. of MBSIR (Mandal
Sanand-Mandal-
Bechraji, Gujarat
Tata Motors, Ford Motors, Suzuki Motors, Honda Motorcycle and Scooter
Mundra Port
Hazira Port
Connected through SH to NH8-A Bechraji Special Investment
(Mandwi-Ahmedabad Region) being developed as an 4.9% Share of exports
ICD Sanand (Thar Dry Port)* in Gujarat) industrial hub, including a
2018-19
ICD Khodiyar* Japanese zone.

7.5% Share of GDP

2017-18

Chennai Port (major port) NH48 (Delhi-Chennai)

Karnataka is the first state
in India to roll out an
1st Largest manufacturer of
Bengaluru-Bidadi, Ennore Port (major port) NH44 (Srinagar-Kanyakumari) tractors, 2-wheelers & 3-wheelers
Toyota Kirloskar, Mahindra Reva Electric, TVS Motors, Ashok Leyland, Electric Vehicle and Energy
Karnataka and New Mangalore port (major port) NH948 (Coimbatore-Bengaluru) Storage policy. in world
Continental
4th Largest car manufacturer;
Hosur, Tamil Nadu ICD Whitefield* NH648 (Dobbaspet, Karnataka
ICD Hosur* to Hosur, Tamil Nadu) It is also the R&D hub of India
with 400+ R&D institutes.
2nd largest bus manufacturer
globally
Pithampur, near Indore, Madhya Pradesh is an auto cluster with the KIA Motors established its first factory in India at Anantapur – Gudipalli,
presence of players such as VE (Volvo-Eicher) Commercial Vehicles, Man Andra Pradesh in 2019. KIA Motor’s supplier base is also establishing its
Trucks, Mahindra 2-wheelers, Force Motors, Bridgestone Tyres, Caparo India, base in the vicinity.
Liugong, Pinnacle Auto, JBM etc. Established Emerging *within 100 kms
Haridwar – Pantnagar, Uttarakhand is home to world’s largest integrated
2-wheeler plant by Hero Motocorp. Tata Motors, Ashok Leyland, Bajaj and
Mahindra are other notable players.

38 Pan-India Location Analysis Pan-India Location Analysis 39

 DRUGS & PHARMACEUTICALS
Market Size (FY18): USD $ 36.7 bn Policy Support:
Expected to be $55 bn by 2020 Cluster Development Programme:
20% share of global supply volume of 6 pharma parks in the pipeline
generic medicines

Region, Port / Dry Port Airport

Major Occupiers Highway Connectivity
State Connectivity Connectivity Remarks
NH44 (Srinagar-Kanyakumari)
Vishakhapatnam Port Hyderabad contributes 40% of the total Indian bulk
Novartis, GSK, Alembic, Biological NH765 (Hyderabad to Thokapalle,
(major port); drug production and 50% of the bulk drug exports.
E, Du Pont, Aurobindo Pharma, Andhra Pradesh)
Hyderabad- Gangavaram Port; Hyderabad Baddi-Solan
Ashland, Insud Pharma (Chemo), NH65 (Pune-Machlipatnam) Genome Valley in Hyderabad is the first and
Medak, Kakinada Port; International
Mylan, TCI, Laurus Labs, Adama, NH163 (Hyderabad to systematically planned and developed cluster
Telangana Krishnapatnam Port Airport
Dr. Reddy’s Laboratories, USP, Bhopalpatnam, Chattisgarh) dedicated to life sciences in India.
ICD Sanathnagar*
Bharat Biotech, Piramal NH161AA (Bhongir-Sangareddy Pharma City being planned.
CFS Kukatpally* Kandla
Ahmedabad-
in Telangana) Mundhra Vadodara Kolkata
Haldia

NH48 (Delhi-Bengaluru-Chennai) R&D Hub of India with 400+ R&D institutes, and 35 Mumbai Paradip
Chennai Port (major port) Clinical Research Organisations and 12 Adverse Drug JNPT
AstraZeneca, GSK, Biocon, Cipla, NH44 (Srinagar-Kanyakumari) Bengaluru
Bengaluru, Ennore Port (major port) Reaction Reporting Centres. Visakhapatnam
Mylan, Himalaya Drug Company, NH948 (Coimbatore-Bengaluru) International Mormugao - Goa Hyderabad
Karnataka New Mangalore Port (major port)
Kemwell, Novozymes, Merck NH648 (Dobbaspet, Karnataka to Hosur, Airport Karnataka contributes ~12% of India’s pharmaceutical
ICD Whitefield*
Tamil Nadu) exports and ~10% of India’s pharmaceutical revenues.
Mangaluru Ennore
Chennai
Bengaluru

Vadodara and 40% of machinery for India’s pharma sector is Kochi

Major Ports
Zydus Cadila, Sun Pharma, Kandla Port (major port) manufactured in Gujarat. Tuticorin
Ahmedabad- NH48 (Delhi-Ahmedabad-Chennai) Surat domestic Clusters
Torrent Pharma, Glenmark, Mundra Port
Halol- NH228 (Ahmedabad-Dandi in Gujarat) Airports, Gujarat has 550+ WHO compliant
Alembic, Dishman Group, Hazira Port
Vadodara, NH947(Sarkhej-Okha in Gujarat) Ahmedabad manufacturing units of ~1,200 units in India.
Gujarat
Claris Lifesciences, Intas
Biopharmaceuticals
ICD Sanand (Thar Dry Port)*
ICD Khodiyar*
Ahmedabad-Vadodara Expressway International Gujarat is the world’s largest producer of SECTOR SNAPSHOT
Airport contraceptive pills.

Baddi, Solan
Ranbaxy, Dr. Reddys Labs, Abbott,
Pfizer, Glenmark, Morepen Labs,
Shimla Airport, Himachal Pradesh meets more than 1/3rd demand of
demand for pharmaceuticals in Asia.
4.4% Share of exports
district, NH105 (Pinjore, Haryana to Swarghat, Chandigarh 2018-19
Unichem Labs, Torrent Pharma, ICD Baddi*
Himachal Himachal Pradesh) International Proposed bulk drug pharma park in Kripalpur
1st Largest vaccine producer,
Alliance World India, Cipla, Zydus
Pradesh Airport in Solan.
Cadila, Alembic, Wokhardt
largest provider of generic
Marmagao Port (major port)* Goa Goa contributes ~10% of India’s pharmaceutical output. medicines globally
Goa (Union Pfizer, Abbott, Glenmark, NH66 (Panvel, Maharashtra to Cape
New Mangalore Port (major port) International
3rd Largest pharma industry
Territory) Unichem Labs, Zydus Cadila Comorin, Tamil Nadu) The Goa pharmaceuticals industry is growing at a rate
at ~350 kms Airport of 15% annually.
by volume in world
Pantnagar
Haridwar, More than 300 Pharmaceutical units.
3,000+ Pharma companies
Airport
Pantnagar, Jubilant Life sciences, India ICD Pantnagar Pharma exports from the State were worth USD
Dehradun, Jolly Grant
Glycols ltd, Coral Laboratories, ICD Kashipur NH 58, NH 109, NH 72 100+ Mn during 2017- 18 majorly to USA, Russia and with 10,500+ manufacturing facilities
Uttarakhand Dehradun
Sharon Biomedicine Ltd MMLP Pantnagar Australia.
Airport
Proposed Medical device park in Haridwar

Indore, Madhya Pradesh with players such as Cipla, Lupin, Piramal Group, GSK, Glenmark, Ranbaxy etc. and contributes ~20% to India’s pharma output.
Established Emerging *within 100 kms
Glenmark, Mylan etc. is also a notable cluster.
Vizag, Andhra Pradesh is an emerging cluster with an established pharma
Maharashtra has multiple scattered clusters such as Pune, Nashik, Tarapur, city (Mylan, Laurus Labs, Biocon, Aurobindo Pharma etc.), and a proposed
Aurangabad etc. with players such as Wockhardt, Lupin, Cipla, Merck, J&J, second pharma city.

40 Pan-India Location Analysis Pan-India Location Analysis 41

 ELECTRONICS & CONSUMER APPLIANCES
Market Size (FY18): $65 bn Policy Support:
(production) Electronic Manufacturing Clusters Scheme
Expected to be $400 bn by 2025 (CAGR: 32%) National Policy of Electronics 2019, to support
Consumer Electronics & Appliance Industry in the achievement of $400bn turnover by 2025
India: 5th largest by 2020 Phased Manufacturing Program

Port /
Region, State Major Occupiers Dry Port Highway Connectivity Airport Connectivity Remarks
Connectivity

Vivo, Haier, Oppo, Samsung, Biggest mobile phone and accessory manufacturing hub of India –
LG, Xiaomi, Lava International, 2/3rds of India’s mobile phones manufacturing
NOIDA-Greater NOIDA Noida
NOIDA-Greater Karbonn Mobiles, GTN, ICD Dadri* Delhi International Airport, in NOIDA-Greater NOIDA.
Expressway
NOIDA-Yamuna Labanyo Electronics, Million ICD Loni*
FNG Expressway Upcoming Jewar International
Expressway, Club Manufacturing, Intex ICD Khurja* Samsung factory in NOIDA: is world’s largest mobile
NH44 (Srinagar-Kanyakumari) Airport Kandla
Uttar Pradesh Technologies, Dixon Technologies ICD Modinagar* manufacturing facility. Mundhra Ahmedabad
Multiple NH in vicinity to Delhi Kolkata
(Padget), Bingo Mobiles Tech, Haldia
Holitech Technology Significant investments by Chinese, Korean and Japanese investors.
Mumbai Paradip
JNPT
Pune
Visakhapatnam
Mormugao - Goa

Mangaluru Ennore
Chennai Port NH48 (Delhi-Chennai) Chennai
Foxconn (including Sony),
Chennai- (major port)* NH32 (Chennai- Sri Venkateswara Mobile and Electronics Manufacturing
Flextronics, Nokia, Xiaomi, Tirupati Airport (granted Kochi
Sriperumbudur, Ennore Port Nagapattinam) Hub and EMC-II are dedicated industrial areas for electronics in Tuticorin Major Ports
Samsung, Bluestar, Lenovo, international upgrade), Clusters
Tamil Nadu and (major port)* NH16 (Kolkata-Chennai) Tirupati.
Motorola, Dell, Lava, Karbonn
Sri City-Tirupati, Kattupalli Port* NH71 (Madanapalle- Chennai International Airport
Mobiles, Dixon technologies, Significant hub for manufacturing of consumer appliances.
Andhra Pradesh Krishnapatnam Naidupeta in Andhra
Celkon, TCL electronics
Port Pradesh) in vicinity of Sri City SECTOR SNAPSHOT

3.9% Share of exports

Pune (Chakan, LG, Jabil, Philips, Whirlpool, Mumbai Port NH48 (Delhi-Chennai) 2018-19
Mumbai International Airport Noteworthy hub for manufacturing of consumer electronics with
2nd Largest mobile handset
Ranjangaon)- Bosch, Videocon, Bharat (major port); NH65 (Pune-Machlipatnam)
several international brands of Refrigerators, Air conditioners,
Aurangabad, Electronics, Corning, Haier, JNPT (major port) Proposed Samruddhi Pune International Airport Washing machines being manufactured.
Maharashtra Honeywell ICD Dighi* Corridor manufacturing nation

Kandla Port Ahmedabad and Gandhinagar have been notified as EMCs.

20 Greenfield EMCs approved
till FY19
(major port) NH48 (Delhi-Chennai)
Mundra Port NH228 (Ahmedabad-Dandi Prantij (60 kms from Ahmedabad) to have 2 semiconductor wafer
201 Applications approved
Ahmedabad- Bluestar, Hitachi, Voltbek (JV of Ahmedabad International
Hazira Port in Gujarat) fabrication manufacturing facilities by Hindustan.
Sanand, Gujarat Voltas and Arcelik), Bosch Airport
ICD Sanand NH947 (Sarkhej-Okha in
(Thar Dry Port)* Gujarat) Semiconductor Manufacturing Corporation, along with ST under M-SIPS FY19
ICD Khodiyar* Microelectronics and Silterra.

2 Electronic Manufacturing Clusters have been approved at E-City and Maheshwaram at Hyderabad, Telangana Established Emerging *within 100 kms

42 Pan-India Location Analysis Pan-India Location Analysis 43