The Delhi-Mumbai Industrial Corridor (DMIC) is one of several infrastructure megaprojects underway in India, intended to boost industrial modernisation and generate manufacturing employment for India’s young, largely unskilled workforce. Field research in DMIC investment sites in Gujarat and Uttar Pradesh shows that its implementation is highly uneven across States and regions. The research, along with the literature, suggests that regional industrial development is likely to depend on the capacity and policies of State governments, and will not be realised through mega-infrastructures projects alone. Gujarat’s successful experience with infrastructure-led industrialisation suggests that key are effective institutional systems for industrial policy and planning, internal coordination within the state, and linkages with industry associations, local enterprises and communities. For the DMIC to realise its objectives, it is imperative to develop state capacity at multiple levels, link with local and regional economies, and strengthen systems for planning and coordination.
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