Industrial estate
Also called: Industrial park · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
An industrial estate is a planned area where ready plots, sheds and shared facilities such as roads, power and water are provided for many industrial units. It saves small firms the cost of building their own infrastructure. India began setting up industrial estates from the mid-1950s to help small industry grow.
Example
A state industrial development corporation may develop an estate near a town, with ready plots, sheds, roads, power and water. Small entrepreneurs can then rent or buy space there and start production quickly.
Don't confuse with
- Industrial cluster: this is a natural concentration of linked firms in one sector, such as Tiruppur knitwear. An industrial estate is a planned site that can house firms from any sector.
- Special economic zone (SEZ): this is a zone with special laws and tax breaks to attract investment and exports. An industrial estate only provides infrastructure.
Related concepts
- Small-scale industry
- Reservation for small-scale industry
- Cottage industry
- Ancillary unit
- Micro, small and medium enterprises
- MSME classification