Content

1. Travelling Across the Industrial Corridors of India
2. Indian Railways–Indian Army “Framework of Cooperation” for Post-Retirement Employment

Travelling Across the Industrial Corridors of India

Why in News? 

• Union Budget 2026–27 announced an Integrated East Coast Industrial Corridor with a strategic node at Durgapur, expanding corridor-led industrialisation under NICDP to strengthen manufacturing competitiveness and export integration.
• ₹3,000 crore allocated in Budget Estimates 2026–27 to National Industrial Corridor Development and Implementation Trust (NICDIT), signalling fiscal prioritisation of plug-and-play industrial ecosystems and trunk infrastructure.
• Across 11 Industrial Corridors, multiple nodes are operational or nearing completion, reflecting acceleration of greenfield industrial cities aligned with PM GatiShakti National Master Plan.

Relevance

GS Paper III – Economy

• Manufacturing-led growth; target 25% of GDP.
• Logistics cost reduction (13–14% of GDP) via DFCs and multimodal hubs.
• GVC integration and export competitiveness.
• Large-scale investment (e.g., DMIC ₹2.02 lakh crore) and job creation (~9.39 lakh projected).

GS Paper III – Infrastructure

• Dedicated Freight Corridors; industrial townships (e.g., Dholera SIR).
• Plug-and-play ecosystems under NICDP and PM GatiShakti.

Industrial Corridors

What are Industrial Corridors?

• Industrial Corridors are linear economic regions developed along high-capacity transport networks integrating road, rail, ports, and airports, catalysing industrial clustering and agglomeration economies.
• Combine industrial townships, logistics parks, manufacturing clusters, and planned urban settlements, ensuring synchronised infrastructure provisioning and reduced transaction costs for globally competitive production.
• Built along trunk infrastructure like Dedicated Freight Corridors (DFCs), enabling efficient freight mobility; India’s logistics cost currently around 13–14% of GDP, higher than global benchmarks.

Why Do They Matter?

• Critical for raising manufacturing share toward 25% of GDP and achieving the $5 trillion economy goal through productivity-led industrial growth.
• Promote regional balance by integrating hinterland states into Global Value Chains (GVCs), reducing excessive coastal concentration of industry.
• Strengthen exports via SEZ-linked clusters, multimodal logistics hubs, and regulatory simplification aligned with National Logistics Policy.
• Enable Low-Carbon Industrialisation through renewable energy integration, water recycling, and Transit-Oriented Development (TOD)-based urban design.

Institutional and Governance Architecture

National Industrial Corridor Development Programme (NICDP)

• NICDP is the umbrella framework guiding development of 11 corridors through Centre–State partnership, ensuring land pooling, trunk infrastructure, and sustainability-based industrial ecosystems.
• Anchored in PM GatiShakti, ensuring GIS-based infrastructure integration, better project sequencing, and reduced inter-ministerial silos.
• Incorporates Low-Carbon City (LCC) principles: renewable energy adoption, public transit systems, solid waste recycling, and reduced conventional power dependence.

Institutional Mechanisms

• National Industrial Corridor Development Corporation Limited (NICDC), incorporated in January 2008, functions as project development and knowledge partner for corridor master planning and investment facilitation.
• NICDIT, re-designated on 7 December 2016, finances strategic trunk infrastructure; allocated ₹3,000 crore in Budget 2026–27.
• Special Purpose Vehicles (SPVs) jointly owned by Centre and States operationalise cooperative federalism and decentralised execution.

Major Corridors and Nodes

Delhi–Mumbai Industrial Corridor (DMIC)

• DMIC spans six states leveraging Western Dedicated Freight Corridor; Dholera Special Investment Region (DSIR) covers 920 sq km, India’s largest greenfield industrial node.
• 22.54 sq km Activation Area at Dholera nearly complete; trunk infrastructure operational, enabling semiconductor, electronics, and EV manufacturing investments.
• Phase-I cities allotted 350 industrial plots, attracting ₹2.02 lakh crore investments across EVs, renewables, pharmaceuticals (Economic Survey 2025–26).
• Shendra-Bidkin Industrial Area (SBIA) has potential to attract ₹67,815 crore and generate over 55,000 jobs, targeting automotive and aerospace sectors.

Chennai–Bengaluru & Vizag–Chennai Corridors

• Chennai–Bengaluru Industrial Corridor (CBIC) strengthens southern automotive and electronics supply chains across Tamil Nadu, Karnataka, Andhra Pradesh.
• Vizag–Chennai Industrial Corridor (VCIC) aligns with Act East Policy, promoting port-led development along eastern seaboard.
• Tumakuru and Krishnapatnam Industrial Areas nearing completion, enhancing logistics efficiency and export-oriented production.

Amritsar–Kolkata Industrial Corridor (AKIC)

• AKIC leverages Eastern Dedicated Freight Corridor, integrating northern and eastern states for balanced regional industrial growth.
• 12 additional projects approved in August 2024 under NICDP at total cost ₹28,602 crore.
• Cover 25,975 acres, expected to attract ₹1,52,757 crore investment potential and generate 9,39,416 jobs, strengthening labour-intensive manufacturing base.

Economic and Developmental Impact

• Reduce logistics costs toward single-digit GDP share, enhancing export competitiveness and supply-chain reliability.
• Nearly 9.39 lakh jobs projected under new projects, aiding demographic dividend absorption and formalisation of manufacturing employment.
• Enable private investment crowding-in by lowering initial capital risks through pre-developed trunk infrastructure.

Constitutional and Federal Dimensions

• Industrial development linked to Concurrent List (Entry 33 – Trade and Commerce) enabling Centre–State legislative cooperation.
• SPV-based execution reflects Cooperative Federalism, balancing central financing with state-level land and regulatory control.

Environmental and Sustainability Lens

• Incorporate renewable energy, zero-liquid discharge norms, water recycling, and green zoning aligned with Net Zero 2070 commitment.
• Greenfield expansion risks ecological degradation; strict compliance with Environmental Impact Assessment (EIA) norms essential.

Challenges 

• High Logistics Cost: India’s logistics cost remains 13–14% of GDP, compared to 8–9% in OECD countries, reducing price competitiveness of corridor-based exports despite DFC and multimodal investments.
• Investment Realisation Gap: While Phase-I DMIC cities attracted ₹2.02 lakh crore, 12 new projects (2024) project ₹1.52 lakh crore potential; actual grounding depends on global demand cycles and domestic credit conditions.
• Regional Imbalance: Western corridor nodes like Dholera (920 sq km) progress faster than eastern nodes under AKIC, reflecting persistent regional industrial disparity and uneven private investor preference.
• Environmental Stress: India extracts nearly 25% of global groundwater; corridor nodes in water-scarce states risk industrial over-extraction without mandatory reuse and zero-liquid discharge enforcement.
• Urban Governance Deficit: Municipal revenues in India average around 1% of GDP, limiting financial sustainability of newly created industrial townships for long-term infrastructure maintenance and service delivery.

Way Forward

• Reduce Logistics Cost Below 10% of GDP: Integrate corridors with Dedicated Freight Corridors, National Logistics Policy targets, and operationalise multimodal parks at Dadri and Nangal Chaudhary for freight efficiency gains.
• Sector–PLI Convergence: Align corridor nodes with PLI sectors (electronics, semiconductors, EVs) to ensure anchor investments, replicating DMIC’s ₹2.02 lakh crore mobilisation model.
• Water-Smart Industrial Mandates: Enforce Zero Liquid Discharge, 100% treated wastewater reuse, and renewable energy quotas within nodes to align with Net Zero 2070 commitments.
• Eastern Corridor Incentives: Provide differentiated fiscal and infrastructure incentives for AKIC and Odisha Economic Corridor nodes to correct investment skew and promote balanced regional growth.
• Outcome-Based Monitoring Framework: Shift evaluation from acreage developed to measurable indicators—actual investment realised, jobs created (target 9.39 lakh), export output generated, audited annually under NICDC supervision.

Prelims Pointers

• NICDC – 2008 incorporation; NICDIT – 2016 re-designation.
• 11 Industrial Corridors under NICDP; 12 projects approved (2024) costing ₹28,602 crore.
• Dholera SIR – 920 sq km, India’s largest industrial node under DMIC.

Practice Question

• Industrial Corridors are central to India’s strategy of manufacturing-led growth. Analyse their role in reducing logistics costs, attracting investment, and integrating India into global value chains. Also examine the challenges limiting their full potential. (250 words)

Indian Railways–Indian Army “Framework of Cooperation” for Post-Retirement Employment

Why in News?

• On 26 February 2026, Indian Railways and the Indian Army launched a “Framework of Cooperation” to institutionalise post-retirement employment pathways for Ex-Servicemen and Ex-Agniveers.
• The initiative provides horizontal reservation and contractual engagement, aligning with the broader objectives of the Agnipath Scheme (2022) to ensure structured second-career transitions.
• In 2024–25 vacancy notifications, 14,788 posts were reserved for Ex-Servicemen, signalling a major public-sector employment push within Railways.

Relevance

GS Paper II – Governance & Social Justice

• Agnipath Scheme rehabilitation mechanism.
• Horizontal reservation for Ex-Servicemen and Ex-Agniveers.
• Inter-ministerial coordination (Defence–Railways).

GS Paper III – Economy & Employment

• 14,788 posts reserved (2024–25); public-sector job absorption.
• Skill utilisation and second-career transition.

GS Paper III – Security

• Civil–military logistics synergy (DFCs, USBRL).
• Veteran integration as element of long-term strategic stability.

Institutional and Legal Framework

Reservation Architecture

• 10% horizontal reservation in Level-2/above posts and 20% in Level-1 posts for Ex-Servicemen, embedded within existing Railway recruitment rules.
• Additional 5% reservation in Level-2/above and 10% in Level-1 posts earmarked specifically for Ex-Agniveers, operationalising rehabilitation under Agnipath policy.
• Recruitment conducted via Railway Recruitment Boards (RRBs) for Level-2/above and Railway Recruitment Centres (RRCs) for Level-1 through competitive examinations.

Employment Numbers and Immediate Measures

• In 2024–25, 14,788 posts reserved for Ex-Servicemen: 6,485 posts in Level-1 and 8,303 posts in Level-2/above, reflecting structured absorption capacity.
• Over 5,000 Level-1 posts being processed for contractual hiring of Ex-Servicemen as Pointsmen to address operational vacancies faster.
• 9 Railway Divisions have signed MoUs with Army organisations to expedite contractual induction pending completion of regular recruitment cycles.

Governance and Administrative Dimensions

• Framework institutionalises Centre–Centre coordination between Ministry of Railways and Ministry of Defence, reducing fragmentation in veteran resettlement policies.
• Creates a structured support mechanism for transitioning personnel, improving awareness of civilian job opportunities and reducing friction in career shifts.
• Contractual engagement model addresses vacancy backlogs in critical safety categories such as Pointsmen, ensuring operational continuity.

Economic and Employment Impact

• Indian Railways is among the largest public employers globally; reserving 14,788 posts in one recruitment cycle strengthens formal employment absorption.
• Early re-employment of retiring soldiers reduces dependency burden and enhances labour productivity by leveraging trained manpower.
• Supports demographic dividend by utilising relatively young retirees under Agnipath, who exit service after 4 years with structured skilling.

Security and Strategic Synergy

• Railways and Army share logistics synergy; projects like Dedicated Freight Corridors (DFCs) enhance strategic troop mobility and equipment transport.
• Infrastructure such as Udhampur–Srinagar–Baramulla Rail Link (USBRL) strengthens rapid deployment in sensitive border regions.
• Skill-sharing initiatives through Gati Shakti Vishwavidyalaya promote cross-sector technical capacity building.

Challenges 

• Absorption Capacity Risk: With Agnipath releasing approximately 75% of each batch after 4 years, long-term absorption pressure may exceed available Railway quotas.
• Contractual Precarity: Hiring 5,000+ Pointsmen on contract risks employment insecurity unless transitioned to regular posts within defined timelines.
• Skill Mismatch Concerns: Military skills may not always directly align with railway technical roles; structured reskilling modules required beyond discipline advantage.
• Reservation Implementation Complexity: Ensuring horizontal reservation does not distort general recruitment balance requires strict roster management and transparency.
• Inter-Ministerial Coordination Gaps: Sustained collaboration between Defence and Railways depends on institutionalised data-sharing and monitoring frameworks.

Way Forward

• Create Dedicated Veteran Skill Mapping Portal linking Army exit profiles with Railway job requirements to reduce mismatch and improve placement efficiency.
• Time-Bound Regularisation Policy ensuring contractual Pointsmen are absorbed through fast-track examinations within defined service duration benchmarks.
• Expand Reservation Beyond Railways by mandating similar quantified quotas in CPSEs and central ministries to distribute Agniveer absorption load.
• Establish Annual Outcome Audit measuring number of Ex-Servicemen recruited, retention rates, and vacancy reduction statistics under NIC-style monitoring.
• Integrated Skilling Certification via Gati Shakti Vishwavidyalaya aligned with Railway Safety Standards to convert military competencies into civilian-recognised qualifications.

Prelims Pointers

• 20% reservation in Level-1 and 10% in Level-2/above for Ex-Servicemen in Railways.
• 5% (Level-2/above) and 10% (Level-1) reservation for Ex-Agniveers.
• 14,788 posts reserved (2024–25); 5,000+ contractual Pointsmen under process.

Practice Question

• The Railways–Army Framework of Cooperation institutionalises post-retirement employment pathways for Ex-Servicemen and Ex-Agniveers. Examine its significance in strengthening social security and administrative coordination. (250 words)