NO.337FEBRUARYADB BRIEFS2025KEY POINTSIndia's push toward self-reliance in manufacturingIPRS 2.0 and Beyondemphasizes the centralityof industrial parks to thecountry's developmentagenda.Soumya ChattopadhyayNirav Vidwans·The Department forSenior Programs OfficerPromotion of Industries andDirectorInternal Trade,Ministry ofIndia Resident MissionPricewaterhouseCoopersCommerce and Industry,Asian Development BankGovernment of India,withthe support of the AsianMohammad Athar SaifSvetlana SamodurovaDevelopment Bank,startedLeaderDirectorthe Industrial Park RatingCapital Projects and InfrastructurePricewaterhouseCoopersSystem (IPRS)in 2017.It hasPricewaterhouseCooperssince progressed through thepilot phase in 2018 and theIPRS 2.0 in 2021,to planningfor the IPRS 3.0The IPRS 2.0 rests on fourassessment pillars-internalBACKGROUNDinfrastructure and utilities,external infrastructure andAs India continues pushing for a strong manufacturing sector,efficient and competitiveconnectivity,environmentand safety,and businessindustrial infrastructure and facilities become paramount.support services.The Industrial Park Rating System (IPRS)serves as a comprehensive tool designed toIts institutional approachevaluate the performance and quality of industrial parks and business districts in Indiaenables knowledge exchange,The Asian Development Bank(ADB)supported the IPRS pilot in 2018,which set thelarge-scale transformativeground for the second phase expansion as IPRS 2.0 in 2021.change,data maturity andinformation accessibility,Objective.The IPRS 2.0 aims to enhance industrial competitiveness by recognizingand benchmarking of bestbest practices,benchmarking and identifying gaps,promoting investment in statepractices.industrial ecosystems,and assisting policymakers in strategic planning for futureindustrialization.Through IPRS 3.0,India'sindustrial sector should beOutput.There are more than 4,000 industrial parks in India,'including 280 operationalable to move toward net zerospecial economic zones(SEZs).2 Under IPRS 2.0,assessment of 449 parks and zones,transition,decarbonizingincluding feedback from over 5,700 industries within them,provided quantitative andindustrialization,and theIndustry 4.0 intervention.Govemment of India,Ministry of Commerce and Industry,Department for Promotion of Industryand Internal Trade,India Industrial Land Bank.https://indiaindustriallandbank.gov.in/-.Status as of20 December 2024.Govemment of India,Ministry of Commerce and Industry,Department of Commerce,SpecialEconomic Zones in India.https://sezindia.gov.in/sites/default/files/factsheet/FACT_SHEET_ON_SEZs_as_on_30.04.2024.pdf-.Status as of 31 March 2024.1SBN978-92-9277-195-9(print)1SBN978-92-9277-196-6(PD月1SSN2218-2675PDF)Publication Stock No.BRF250054-2DOl:http://dx.doi.org/10.22617/BRF250054-2ADBADB BRIEFS NO.337qualitative insights across four pillars of assessment-internaland poli cymakers and motivates park authorities to enhance theinfrastructure and utilities,external infrastructure and connectivity,quality of services and infrastructure.This emphasis on continuousenvironment and safety,and business support services.3improvement fosters innovation,efficiency,and customer-centricservices within industrial parks and promotes transparency,Outcome.The IPRS 2.0 exercise culminated in state-specificcompetitiveness,cost-savings,supply chain development,reports and a national workshop on the theme"Advancingsustainability,and ease of doing business.The feedback reportsIndia's Industrial Competitiveness"that served as a platform forgenerated by the IPRS serve as actionable road maps forknowledge exchange,deliberations on financing solutions andinfrastructural upgrades,service enhancements,and the adoptionsustainability interventions,and yielded insights and inputs forof sustainable practices.Unlike conventional rankings,the IPRSIPRS 3.0.Informed by the findings of IPRS 2.0,the Government ofpromotes collaboration and information sharing among parks,India has announced that it would develop 100 investment-readythereby accelerating sector-wide development.Plug-and-Play industrial parks across the country.EVOLVING INDIA'S INDUSTRIAL PARKINDUSTRIAL PARKS FORRATING SYSTEM:PILOT PHASEECONOMIC GROWTHADB has been supporting the Department for Promotion ofIndustrial parks,estates,zones,and SEZs are integrated andIndustry Internal Trade (DPIIT),Ministry of Commerce andserviced areas designed to support industrial development,thusIndustry,Government of India in developing and evolving the IPRSdriving economic growth,attracting investments,advancingin India,starting with the pilot phase in 2018.5 Seeking to gauge theinfrastructure,enabling technology transfer,promoting exports,readiness of industrial parks,assess their capacity utilization,andand generating employment.As India continues pushing for aidentify infrastructure-related challenges,the pilot phase providedstrong manufacturing sector,efficient and competitive industrialvaluable insights,showcasing strengths in internal and externalinfrastructure becomes paramount(Box 1).infrastructure while highlighting areas necessitating improvementin business facilitation and environmental management.INDUSTRIAL PARK RATING SYSTEMINDUSTRIAL PARK RATING SYSTEM 2.0The IPRS serves as a comprehensive tool designed to assess andevaluate the performance and quality of industrial parks andEvolution and Key Featuresbusiness districts in India.Resting on the four assessment pillars,Following the successful completion of the pilot phase,ADBthe IPRS offers valuable insights to investors,park developers,and the DPlIT assimilated the insights and feedback gathered toBox 1:India's Push Toward Self-Reliance in ManufacturingThe Indian economy in October-December 2023 maintainedPradhan Mantri Gati Shakti National Master Planrobust macroeconomic targets with stellar 8.2%growth,despite theNational Logistics PolicyReducing Compliance Burden exerciseindustrial sector,which has already grown significantly over the lastOpen Network for Digital Commercefew decades,is set to accelerate further as public digital platformsProduction-Linked Incentive Schemesexpand their reach,linking firms and customers in ways neverRevised Initiative for Semiconductors and Displaybefore envisaged.Manufacturing EcosystemIndustrial Corridor ProgramManufacturing in India continues to be spurred on by the game-National Single Window Systemchanging policies of the Government of India,surely and steadilypushing India toward self-reliance:Industrial Park Rating SystemEmployment-Linked IncentiveRental Housing for Industrial WorkersGovernment of India,Ministry of Statistics and Programme Implementation.2024.Press note on provisional estimates of annual GDP for 2023-24 andquarterly estimates of GDP for Q4of 2023-24.Press release through the Press Information Bureau.https://www.mospi.gov.in/sites/default/files/pressSource:Study team analysis.Figure A.]presents the geographic distribution of these industrial parksand zonesacross India.4Govemment of India,Ministry of Finance.2024.Union Budget 2024-2025.Paragraph 53-54.https://www.indiabudget.gov.in/doc/budget_speech.pdf.ADB.2020.The Industrial Park Rating System in India.ADB Briefs No.127.February.Manila.https://www.adb.org/sites/default/files/publication/568356/adb-brief-127-industrial-park-rating-system-india.pdf