Promotion of economic corridor is necessary for regional prosperity

India has been developing several economic corridors for over a decade. These corridors can play an important role in creating employment opportunities, increasing manufacturing required for the economy, increasing people's income and quality of life.

Many of these are almost ready, some are now reaching neighbouring countries, strengthening the goal of prosperity through shared development.

Since then, there has been an increased understanding of the Economic Corridor and the essentials for its success. For example, first, it became clear that creating a greenfield industrial location was difficult and world class infrastructure would require substantial funding from the government.

The second lesson learned is that high quality urban amenities are essential. Business leaders, management and employees all want a place where the quality of life is good. In order to grow the economy, it is necessary to rapidly build urban infrastructure in the areas near the industrial zone for the required manufacturing level, which should have all the urban facilities.

The third lesson is that it is important to prioritize the approach to the corridor. It is politically difficult, but necessary to get the most out of limited financial resources. Prefer a location where there is a high potential for competition in manufacturing and then invest in filling the gaps there.

In the end, only empowered institutions will fulfil the dream of economic prosperity. For example, Andhra Pradesh has created AP Industrial Corridor Development Authority. Increasing competition in industrial areas will require coordination between central, state and local governments and various departments.

The challenge is to make sectoral plans in line with regional plans. The experience so far has shown benefit in adapting the corridor approach to more geographical areas,

hence the institutional challenge will need to be worked out further. This is necessary to extend the economic integration plan along India's North East to Bangladesh, Bhutan, Myanmar and the Mekong region.