White Paper: Strengthening Industrial Infrastructure for Delhi’s MSMEs

Released at the CII Delhi Annual MSME Summit held on 2 September 2026, Strengthening Industrial Infrastructure for Delhi’s MSMEs is an industry-focused study by the Confederation of Indian Industry (CII) Delhi and India Law Offices LLP, with ILO serving as the Knowledge Partner.

The publication provides an evidence-based assessment of Delhi’s industrial infrastructure and MSME landscape, examining the challenges businesses face and identifying reforms needed to build a more competitive, sustainable and future-ready industrial environment.

Delhi is at an important inflection point in its industrial journey. Rising land costs, environmental constraints, infrastructure deficiencies and fragmented institutional responsibilities are reshaping the way businesses operate and grow within the National Capital Territory. At the same time, Delhi’s MSMEs remain a vital contributor to employment, manufacturing, trade and the wider NCR value chain.

At its core, the study explores how Delhi can move beyond “Ease of Doing Business” towards “Ease of Growing Business” by strengthening the infrastructure, governance, technology and institutional support needed to help existing and emerging enterprises modernise, expand and remain competitive.

The publication is intended to support a constructive dialogue between Government, industry and institutions, while providing practical recommendations for strengthening Delhi’s industrial environment and enabling its transition towards a more efficient, technology-enabled and higher-value MSME ecosystem.

Key Themes Address in the White Paper

1) Modernising Delhi’s Industrial Infrastructure

The White Paper assesses the condition and management of roads, drainage, sewerage, water supply, parking, waste management, electricity and other common industrial infrastructure.

It highlights the need for estate-specific infrastructure interventions, supported by technical audits and phased rehabilitation, rather than a uniform redevelopment approach across Delhi’s industrial estates.

2) Improving Governance and Accountability

Delhi’s industrial ecosystem involves multiple institutions responsible for land, infrastructure, utilities, environmental compliance, fire safety and other regulatory functions.

The White Paper identifies fragmented institutional responsibility as a significant source of operational friction and recommends a more integrated, accountable interface for industry, including a single grievance mechanism with defined responsibility, timelines and escalation.

3) Enabling MSMEs to Grow

Infrastructure alone is not sufficient for long-term competitiveness. Industry consultations highlighted gaps in skilled manpower, technology access, testing and certification facilities, prototyping, design capabilities and industry-academia collaboration.

The White Paper therefore advocates the development of Common Facility Centres, cluster-linked skill development centres, technology infrastructure and industry-linked training to help MSMEs modernise and move towards higher-value production.

4) Building a Future-Ready Industrial Ecosystem

The proposed roadmap combines immediate infrastructure rehabilitation with medium- and long-term measures including redevelopment, common facilities, renewable energy, digital integration, smart infrastructure, flatted factories and plug-and-play industrial spaces.

Key Recommendations Proposed in the White Paper

The White Paper proposes a phased policy and implementation roadmap centred around:

• Rehabilitation of existing industrial estates through time-bound technical audits and critical infrastructure upgrades;

• Integrated estate management covering roads, drainage, water, waste, parking and other common services;

• Rationalisation of overlapping charges and greater transparency in service delivery and PPP arrangements;

• A single accountable industry-facing interface for grievances and inter-agency coordination;

• Cluster-specific Common Facility Centres for testing, calibration, prototyping and certification;

• Industry-linked skill development and stronger collaboration between MSMEs, ITIs, educational institutions and industry associations;

• Technology adoption and resource efficiency, including smart metering, GIS-based asset management and rooftop solar;

• Flatted factories, plug-and-play infrastructure and vertical industrial development to address Delhi’s land constraints; and

• A phased transition towards a cleaner, technology-intensive and higher-value industrial ecosystem.

From Ease of Doing Business to Ease of Growing Business

One of the central messages of the White Paper is that Delhi’s industrial policy must evolve beyond enabling enterprises to establish themselves.

For existing MSMEs, competitiveness increasingly depends on whether they can modernise, access technology and skilled talent, obtain testing and certification support, expand operations and navigate regulatory processes predictably — while continuing to operate within Delhi.

The ultimate objective is therefore not to recreate Delhi’s historical industrial footprint, but to make its existing industrial ecosystem functional, predictable, competitive and capable of growth while enabling a gradual transition towards cleaner and higher-value enterprise.

If you would like to read the complete 2026 White Paper, please reach out to us for a copy.