Chennai-Tirupati-Nellore industrial hub among 10 clusters for investment

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May 21, 2020 7:50 AM

The other hotspots for future investment include Mumbai-Aurangabad, Pune, Gurugram-Bhiwadi-Neemrana Corridor, Noida-Greater Noida-Yamuna Expressway, Bengaluru, Hyderabad, Ahmedabad and Vadodara (Bharuch-Ankleshwar cluster).

Invest India, JLL India,post covid 19, Chennai-Tirupati-Nellore industrial hub, industrial corridors, Tri-city hub, clusters for investmentThe 10 mega clusters identified cover about a hundred popular industrial parks and house over 600 Indian and foreign multinational companies.

Invest India, the National Investment Promotion and Facilitation Agency of the Government of India, in collaboration with JLL India, has identified Sri City centred Chennai-Tirupati-Nellore Tri-city industrial corridor as one among the 10 key centres for manufacturing across nine states in the country that have high potential to attract investments from other nations, post Covid-19.

The other hotspots for future investment include Mumbai-Aurangabad, Pune, Gurugram-Bhiwadi-Neemrana Corridor, Noida-Greater Noida-Yamuna Expressway, Bengaluru, Hyderabad, Ahmedabad and Vadodara (Bharuch-Ankleshwar cluster).

As a part of its ‘Doing Business in India Guide’ series, Invest India released a publication titled, ‘Great Places for Manufacturing in India’, highlighting the potential of the states in attracting investments, especially in the manufacturing sector in the post Covid-19 era.

Invest India’s publication, a thematic collation of details of the 10 mega clusters, stressed on the most attractive destinations for companies to set business based on sectoral requirements and tax incentives, to promote the country as an alternative business destination.

The 10 mega clusters identified cover about a hundred popular industrial parks and house over 600 Indian and foreign multinational companies.

Ravindra Sannareddy, founder and MD of Sri City, said: “Sri City, which is at the centre of the Tri-city hub, has emerged as the largest industrial park in South India, with the presence of more than 187 prestigious brands from 27 countries.”

Chennai, already important to major auto and auto component companies, both global and domestic, accounts for 30% of India’s four-wheeler industry, 33% of auto parts production and 16% electronic hardware production, Invest India report stated.

On the importance of the Tri-city corridor, the report said Chennai-Tirupati-Nellore tri-city industrial hub falls under the influence zone of two major industrial corridors — Chennai-Bengaluru Industrial Corridor (CBIC) and Vishakhpatnam-Chennai Industrial Corridor (VCIC). Besides, Tirupati is now emerging as an electronics cluster.

Sri City is South India’s largest industrial park in the private sector and is home to 200 companies from 27 countries. It has attracted a total investment of $ 4 billion and is located on Andhra Pradesh –Tamil Nadu border. It thrives on Chennai’s industrial ecosystem and port capacity.

“The Tri-city hub is an ideal business location for companies from India and abroad in order to be successful in the Indian markets. With its strategically favourable location, excellent road and rail connectivity, convenient access to four seaports, and two international airports, the hub offers the advantage for serving the domestic and overseas market. It boasts of a large pool of highly skilled workforce and competitive labour costs,” Sannareddy added.

As businesses, worldwide, gear up for the new normal after the pandemic, India has been steadfastly cementing its position as a resilient economy with swift action-oriented decision-making. It has emerged as a forerunner for business continuity plans, with its inventory of low-risk and asset-light models, said Deepak Bagla, MD & CEO, Invest India, in his forward note.

While industries world over are revisiting their global supply chain and reworking alternative business continuity plans, India has three distinct advantages in attracting companies, according to Ramesh Nair, CEO & country head, JLL India. In his preface he said the recent reduction of corporate taxes augured well for the country. The country is host to global in-house centres, global centres of excellence for several manufacturing companies that provide for more robust ecosystem and R&D, he said.

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