Cushman & Wakefield Report Advocates Ready-Made Industrial Zones as Key to India's Manufacturing Revolution

A comprehensive analysis by Cushman & Wakefield has identified plug-and-play industrial parks as the transformative solution India needs to overcome persistent manufacturing challenges and accelerate economic growth. The report, released on June 30, 2025, emphasizes that ready-to-use industrial infrastructure could significantly reduce setup times and operational costs for businesses, particularly benefiting small and medium enterprises.

Ready-to-Use Industrial Infrastructure Emerges as Game-Changer

According to the consultancy's findings, plug-and-play industrial parks represent fully developed zones equipped with essential infrastructure including roads, power supply, water systems, drainage networks, and communication facilities. Some facilities even feature pre-built manufacturing units and shared amenities such as testing laboratories and warehousing facilities. The report suggests that such comprehensive infrastructure enables businesses to commence operations immediately without typical setup delays, thereby reducing both time-to-market and capital expenditure requirements.

Industry experts noted that these industrial smart cities will revolutionize manufacturing across the country by providing integrated ecosystems for businesses of all sizes.

Manufacturing Sector Faces Critical Infrastructure Bottlenecks

The research highlighted that India's manufacturing sector currently encounters significant obstacles despite its growth potential. The consultancy's analysis revealed that 88% of manufacturers acknowledge that improved infrastructure and policy clarity have encouraged business expansion, yet considerable delays persist due to inefficient setup processes.

Primary Challenges Identified

Cushman & Wakefield's assessment identified four major impediments affecting India's manufacturing readiness. The report emphasized that logistics costs in the country exceed global benchmarks, creating competitive disadvantages for domestic manufacturers. Additionally, underdeveloped warehousing infrastructure limits efficient supply chain operations, while restricted value-addition processes constrain manufacturing sophistication. The analysis also pointed to skilled labor shortages as a critical constraint affecting productivity and growth potential.

These structural weaknesses contribute to increased operational costs, reduced profit margins, and diminished export competitiveness for Indian manufacturers. The report suggests that addressing these challenges through strategic infrastructure development could significantly enhance the country's manufacturing capabilities.

Five-Point Strategic Framework Proposed for Industrial Development

The consultancy outlined a comprehensive policy approach to address existing manufacturing constraints through coordinated interventions. The framework emphasizes rapid scaling of plug-and-play zones across strategic locations, coupled with benchmark reforms specifically designed to support MSME growth within shared industrial ecosystems.

Infrastructure Development Priorities

The report advocates for establishing multimodal logistics parks that integrate road, rail, and port connectivity near industrial zones. This approach aims to create seamless cargo movement systems that reduce transportation costs and delivery timeframes. The analysis suggests that such integrated connectivity hubs could significantly improve India's logistics efficiency ratings.

The strategy also emphasizes targeted skilling programs aligned with industry requirements, particularly focusing on specialized processes and foreign direct investment sectors. Additionally, the framework proposes digital export platforms to streamline logistics, trade finance, and regulatory compliance processes for manufacturers seeking international markets.

The proposed developments align with broader infrastructure initiatives, including national industrial corridors bridging urban and rural India for comprehensive economic development.

Industry Leadership Emphasizes Infrastructure Investment Benefits

Gautam Saraf, Managing Director of Cushman & Wakefield's Mumbai operations, emphasized that enhanced infrastructure and policy clarity have already stimulated expansion activities for 88% of surveyed manufacturers. However, he noted that infrastructure setup inefficiencies continue to create operational challenges for businesses attempting to establish manufacturing facilities.

Abhishek Bhutani, Head of Logistics and Industrial Services for Gujarat operations, highlighted that plug-and-play industrial parks deliver multiple strategic advantages. According to his assessment, such facilities significantly reduce time required for operational readiness while minimizing upfront investment risks and capital requirements. The integrated ecosystem approach proves particularly beneficial for MSME growth, enabling smaller enterprises to access world-class infrastructure without prohibitive investment costs.

Global Success Models Demonstrate Viability

The report referenced international examples to demonstrate the effectiveness of plug-and-play industrial development models. China's coastal industrial parks and specialized economic zones in the United States, particularly in Tennessee, illustrate how comprehensive infrastructure frameworks can foster high-value manufacturing activities and attract significant investment.

Indian Implementation Potential

For India, the analysis suggests that strategic integration of industrial parks with upcoming infrastructure projects, including expressways and logistics hubs under the Bharatmala and Sagarmala initiatives, could replicate international success stories. The report specifically mentioned potential development opportunities in Nagpur and Assam, where integrated logistics infrastructure could create manufacturing excellence centers.

The research indicates that seamless logistics integration reduces operational delays and cost overruns, making Indian manufacturing more competitive in global markets. This approach supports the broader vision of India's bold move toward industrial smart cities that transform manufacturing capabilities and employment generation.

Implementation Timeline and Expected Outcomes

Strategic Recommendations for Stakeholders

The consultancy provided specific recommendations for policymakers and real estate developers to accelerate plug-and-play industrial park development. The report suggests fast-tracking land acquisition processes for industrial zones located near highways and port facilities, while promoting Special Purpose Vehicles with Public-Private Partnership frameworks to finance zonal infrastructure development.

Policy Implementation Measures

Key recommendations include launching collaborative skilling programs directly tied to industrial tenants within designated zones, ensuring workforce development aligns with actual industry requirements. The framework also suggests priority approval processes for MSMEs choosing to locate within plug-and-play parks, reducing bureaucratic barriers that typically delay business establishment.

The report emphasizes leveraging digital export facilitation platforms specifically designed for MSMEs, enabling smaller enterprises to access international markets more efficiently. Additionally, the framework recommends establishing comprehensive performance monitoring systems to track logistics cost improvements, time-to-market reductions, job creation metrics, and export growth indicators.

These recommendations complement existing infrastructure investments, such as the joint ventures developing industrial and logistics parks that are already transforming India's manufacturing landscape.

Transformative Potential for Indian Manufacturing

The Cushman & Wakefield analysis concludes that plug-and-play industrial parks, supported by multimodal logistics networks and focused skill development initiatives, provide a comprehensive blueprint for overcoming India's structural manufacturing constraints. The report suggests that implementing these strategies could transform India's manufacturing trajectory, making self-reliance, global competitiveness, and large-scale production capabilities achievable objectives rather than distant aspirations.

The consultancy's research indicates that coordinated infrastructure development, policy reforms, and skills enhancement can position India as a preferred global manufacturing destination while supporting domestic economic growth and employment generation goals.

Frequently Asked Questions

What constitutes a plug-and-play industrial park?

According to the report, these facilities offer turnkey infrastructure solutions including ready-made power supply, water systems, road networks, logistics connectivity, and sometimes manufacturing-ready structures. Such comprehensive infrastructure enables businesses to begin operations rapidly without substantial upfront infrastructure investments.

How do such parks reduce logistics expenses?

The research indicates that built-in connectivity to highways, railway networks, and port facilities within industrial zones minimizes transportation distances, handling charges, and operational delays, resulting in significant cost savings for manufacturers.

Can small and medium enterprises benefit from these facilities?

The analysis confirms that shared infrastructure significantly reduces initial capital requirements for smaller enterprises, while integrated skilling and logistics support enables faster scaling compared to traditional industrial development approaches.

What role do multimodal logistics parks play?

These facilities serve as integrated connectivity hubs combining road, rail, and port access, enabling efficient cargo movement and creating seamless linkages with industrial estates, thereby improving overall supply chain efficiency.

How can policymakers accelerate park development?

The report recommends streamlining land acquisition processes, revising MSME incentive structures, facilitating Public-Private Partnerships for zone development, and linking export-related benefits to digital infrastructure platforms to encourage rapid implementation.