PIB Summaries 27 February 2026

Content

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

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Travelling Across the Industrial Corridors of India

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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.

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)

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

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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.

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)

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