Noida: Stacks of aluminium sheets rest on the walls of Paras Exterior and Interior, a modest shop in the heart of Sector 9, Noida. The store was opened in April 2024 by 32-year-old Udit Gupta and his father, catering to the growing demand from the region’s construction boom. But Gupta’s commercial business sits in a zone designated exclusively for manufacturing, which Noida—the New Okhla Industrial Development Authority—was originally built for.
“Sector 9 used to have factories, but now it’s mostly trading and fabrication,” said Gupta. “The authorities aren’t too happy about it, but so far nobody has bothered us.”
Planned as an industrial township in the 1970s to ease pressure off the capital’s shoulders, Noida’s identity has evolved. It’s no longer Delhi’s soot-covered cousin with small and medium-sized businesses producing goods to fuel the nation’s economic engine. High-rises, shopping malls, art galleries, and even beer gardens have sprouted. Earlier, people would live in Delhi and work in Noida. Now, traffic flows both ways.
At its core, Noida still wants to be seen as an industrial powerhouse, the flag bearer of the government’s ‘Make in India’ initiative. The Authority has made operating a factory easy—it provides ready-to-move-in plots with access to roads, electricity, and water. But with limited land and sky-high prices, new factories are choosing the greener pastures of Greater Noida, the Yamuna Expressway, and even other states like Haryana. Noida built IT parks and launched Special Economic Zones (SEZs) to attract white-collar talent, but even those companies prefer NCR’s other heavyweight—Gurugram—for their headquarters.
“We wanted to make Noida an integrated city,” said Sanjay Kumar Khatri, Additional Chief Executive Officer (ACEO) of Noida. “If you limit industry to only manufacturing, then you lose out. IT wasn’t even prominent when Noida was first conceived. We have evolved.”
Today, only 18.37 per cent of Noida’s total area is industrial, according to the Authority. In contrast, 37.45 per cent of land use is residential, catering to the growing demand from middle and upper-middle class families, many of whom were pushed out of Delhi’s expensive real estate. But for Noida’s factory workers and daily wage labourers, affordable housing is still a distant dream, an abandoned plan by Noida to create an industrial utopia.
Cracks in the grand plan
At the Noida Entrepreneurs Association office in Sector 6, President Vipin Malhan holds court. The office, a hub for small-scale manufacturers—from garment makers to auto part suppliers—serves as a crucial link between Noida’s private industry and the government. Here, some of Noida’s oldest factory owners congregate to discuss business interests.
“Noida Authority’s focus was initially on industry for the first 10 years,” said Malhan, providing a history lesson on Noida’s rise as an industrial centre. “Factory owners then demanded residences. Subsequently, malls and commercial districts increased. Then institutes, colleges, and schools.”
Today, Noida is a hot pot of different zones—industrial, commercial, institutional, residential, and even designated areas for warehousing. “It’s a mix. The name has the word ‘industry’ in it, and that’s how it started, but the focus now is on all areas,” he said.
Manufacturing contributes to society. Raw materials come in, employment is generated, eateries come up, transportation develops. If you are doing just commercial activities, the basic purpose of industrialisation is defeated.
Noida official
Malhan’s colleague, Secretary General VK Seth, was one of the early entrepreneurs who moved his manufacturing base from New Delhi to Noida. He recalled how in 1976, the recently formed Authority, which had its office in Delhi at the time, would take Matador vans filled with people to the newly developed sectors, showcasing both industrial sheds and plots of land ready for purchase.
“I chose to set up near Sector 6, which is where the Noida Authority had planned to shift their headquarters,” said Seth, who opened a PVC manufacturing unit in 1978. “At the time, I still lived in Delhi, so I would travel 26 kilometres daily from my house to the factory.”
Seth purchased one of the 210 square metres, pre-built sheds developed by the Authority through hypothecation, where he paid Rs 70,000 upfront and pledged the shed as collateral for a loan. The total value of the shed at the time was Rs 2-2.5 lakh.
The hypothecation scheme and lack of sufficient industrial area in Delhi attracted smaller industrialists like Seth in droves. But in the late ’70s and early ’80s, Noida wasn’t the industrial utopia that was promised. Cracks began to emerge in the grand plan.
“At the time, there was only one DTC (Delhi Transport Corporation) bus route from Delhi to Noida,” said Seth, adding that even the roads were poor. His tyre would get punctured almost daily.
Noida was just finding its feet at the time. There were no commercial bank branches set up, so Seth had to visit the regional branches in Meerut for loans. Electricity bill deposits were made in Ghaziabad. There was a lack of general infrastructure at the time, large empty swaths of land that allowed him to clearly see Mayur Vihar from his factory, some 16 km away. With no tree cover, the area turned into a heat trap. Downpours turned the roads muddy and strong winds threw dust in the air.
“There were also no fabricators at the time, so machine parts were hard to find,” said Seth, adding that it became difficult to compete with other manufacturers. “To supply our goods, we had to travel to Delhi and other sites, incurring additional costs in transportation and sales tax.”
But as Noida grew in popularity—on account of the industrialists setting up shop in the region—the area underwent a development overhaul. A turning point came in the mid-1980s, when larger factories opened. Seth recalled how Motherson Sumi Systems (now known as Samvardhana Motherson), a manufacturer of automotive parts, helped birth around 50 other surrounding units to provide raw materials for their components.
Building infrastructure to support the small and medium enterprises was always part of the plan, but the Authority’s unique status as a statutory body formed under the Uttar Pradesh Industrial Area Development Act, 1976 fast-tracked the region’s progress.
“Noida Authority not only develops plots but also provides services ranging from water supply to waste management,” said Pushpa Pathak, a senior visiting fellow at the Centre for Policy Research with experience in urban development. “This is unlike Delhi and Gurugram, which have multiple agencies providing these services, leading to mismatched and unplanned development.”
Before selling off plots of land to developers, the Authority ensured that trunk infrastructure was in place: roads, electricity, water supply, and other systems essential for urbanised regions. In contrast, private developers in Gurugram built on water drainage channels, highlighting a severe lack of urban planning. Pathak said that this is the reason Gurugram experiences flooding during the monsoon season and Noida doesn’t.
“Noida has developed a lot. Now, people prefer coming to Noida over Delhi,” said Seth, adding that the Authority has considerably improved infrastructure, especially since the 1990s. “Power cuts have drastically reduced, roads are good, green cover has increased—you will find the temperature here two degrees lower than Delhi.”
Seth paid homage to the Single Window System—an online, single point of contact for business applications, approvals, and licenses—that eased business operations for him. Now, issues with electricity, water connection, and fire safety are all addressed online through an app.
This ‘plug and play’ system made setting up a factory in Noida attractive. Entrepreneurs just had to develop the plot; everything else was ready for them. It didn’t involve running around from pillar to post for a water connection or bribing a government official for power lines.
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Not enough industrial land
Ekkaa Electronics, a manufacturer of LED TVs and accessories, sits on a massive 4-acre plot in Noida’s phase 2, home to India’s largest factories. Down the road, Samsung operates one of the world’s largest mobile factories, while Raphe mPhibr’s secretive, high-tech manufacturing plant is busy working on unmanned aerial vehicles (UAVs). Not long ago, this entire area was farmland. Today, Noida is attempting to be the poster child for the government’s ‘Make in India’ initiative.
Over the last eight years, investment has poured into the region. According to the Authority, 412 acres of land have been allotted for industrial use. Swedish furniture manufacturer IKEA put in Rs 4,300 crore, electronics manufacturer Dixon invested Rs 270 crore, and the Adani Group committed Rs 4,900 crore.
The Ekkaa plant was inaugurated in September 2023, when Noida was already well-developed and ready for much larger, state-of-the-art factories. Gone were the times of power cuts, poor roads, and dust storms that plagued the region in the 1980s. Ekkaa bought the land from the private market—and paid a premium—but the trunk infrastructure was in place for the factory to start production from day one.
“We wanted to produce electronics that we were dependent on China for,” said Chandra Prakash Gupta, chairman and founder of Ekkaa. “Apart from the semiconductor and open cell display, we manufacture everything here.”
Today, the factory has a capacity of 5 lakh TVs per month. Like clockwork, parts move through different departments across the factory floors, with workers adding a chip here and soldering a part there to send the finished product out the factory door.
Gupta opened his first factory in Kundli, Haryana, but was on the lookout for space to build a much larger factory. The decision to lay the foundation in Noida’s phase 2 had more to do with the improvement of law and order in the region, Noida’s proximity to Delhi’s power corridors, and the government’s ‘Make in India’ push.
“Earlier, law and order were a big challenge. People who would come from Delhi to work here would arrive by 11 am and leave their factories by 4 pm,” said Gupta, adding that the situation improved after Noida was aggressively commercialised.
“In Yogi Adityanath’s term, an airport was announced in Gautam Buddha Nagar, and the ease of business improved with the Single Window System. This infrastructure brought in the big industrialists.”
Right before Noida’s ‘Make in India’ dream could be fully realised, however, industrialists started looking at Greater Noida and the Yamuna Expressway for building factories. The new regions have the advantage of learning from the planning mistakes Noida made.
“We have never had any industry-specific zones like Greater Noida and Yamuna,” said Sanjay Kumar Khatri, discussing the ample land available to the new regions. “For example, they have a medicinal park only for pharma companies, an apparel park only for ready-made garments.”
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The plague of commercial activity
A cluster of mirrors, glass sheets, and windows occupies space at a store in the heart of Sector 9. Sushant, the owner of Krishna Glass, is one of the innumerable traders operating in an exclusively industrial zone. A Noida official described the sector as a ‘plague’, something that had become ‘purely commercial’.
“Manufacturing contributes to society,” said the Noida official, who did not wish to be named. “Raw materials come in, employment is generated, eateries come up, transportation develops. If you are doing just commercial activities, the basic purpose of industrialisation is defeated.”
But 55-year-old Sushant doesn’t see how any industrial activity can take place from a 55 sq m shed. “Look at the shed right opposite my store, it’s much larger and therefore can produce goods,” he said.
The din from a car parts manufacturer right opposite Sushant’s store filters in through the glass windows. Shaking his head in frustration, he recalled how the Authority sealed his previous plot at H-13 in the same sector, because there wasn’t any industrial activity taking place.
“The plot at H-13 was much larger, 450 sq m. That’s why they sealed it,” said Sushant, who was forced to shift to the new, much smaller plot to carry on his business. The Authority is clamping down on the larger plots meant for industrial production that have instead been used as trading houses—for goods being manufactured elsewhere but sold in Noida.
Smaller sheds have avoided the wrath of the Authority, but not without controversy. In 2012, traders had protested the Authority’s sealing drive in the sector, which resulted in lathicharge by the police and several injuries. The Authority has been largely unsuccessful in removing commercial activities from several sectors meant for factories, leaving an uneasy truce in place.
Ramesh, a bamboo-seller, who operates out of a 100 sq m shed in the sector, remembers some of the protests. But his mind is at peace—Mahesh Sharma, Member of Parliament from Gautam Buddha Nagar, alleviated his fears.
“I attended one of Sharma’s rallies. He told us that nothing will happen, and we can continue running our businesses,” said Ramesh, a smile on his face. The Authority admits that politics has played a part in Sector 9’s complicated landscape, leaving the body unable to shake the existing setup.
Today, the relatively stable environment has emboldened traders opening new stores in Noida’s industrial zones. Udit Gupta, owner of Paras Exterior and Interior, realised that the new development and scope of business was too enticing to ignore.
“All the construction coming up in Greater Noida and the surrounding areas need aluminium sheets, so we took this space on rent, and so far, business has been good,” said Gupta, who was originally operating from Delhi.
With local leaders offering assurances to traders, enforcement has taken a backseat, allowing commercial activity to flourish in areas meant strictly for industry. The buzz of machines is slowly but surely being drowned out by commerce in some sectors.
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A housing crisis
Noida cannot be viewed independently of Delhi. Developed as an industrial township, only a few residential plots were initially planned. Not many had envisaged the explosive growth the region witnessed. Builders primarily catered to middle and high-income families—affordable housing for factory workers wasn’t as profitable.
“The thought was that if there is so much industrial employment, people will need a place to live,” said Pathak, explaining the gradual increase in residential zones in the region. “So residential townships were also approved, but they were not for industrial labour.”
The bylanes of Sector 8 are dotted with informal housing units, power lines crisscrossing overhead through windows. Legacy business owners and professionals climbing up the corporate ladder have their high rises, but for daily wage labourers toiling away in the region’s factories and warehouses, housing is in short supply.
Gangeshwar Dutt Sharma, President of the Centre of Indian Trade Unions (CITU), has been advocating for housing colonies for years but has largely been unsuccessful.
“Our biggest problem is housing,” said Sharma, a portrait of BR Ambedkar behind him on his office wall. “There is nothing for labourers in the master plan, and because of this, there are jhuggi bastis (informal housing) in Sectors 8, 9, 10, 16, 17.”
Today, workers sleep where they can, including the factory floor. Cramped, informal units housing 10 workers in a room have sprouted across the region. Along the banks of the Hindon River, which cuts through Noida, dilapidated housing with no electricity supply or proper sanitation lines the embankments. Workers are living in the shadows of the factories they keep running.
“It’s an injustice to live without electricity in Noida,” said Sharma. “People either steal power, use diyas or buy those prepaid metres for electricity.”
The Authority has developed flats for EWS (Economically Weaker Section) and LIG (Low Income Group), but these remain both in low supply and unaffordable to labourers, many of whom prefer living near their workplaces.
Shramik Kunj, a residential project in Sector 122, was completed in 2008 by the Authority. The project had 1RK, 1BHK, and 2BHK flats aimed at lower and middle-income groups, but labourers couldn’t afford them. Today, the price of a 1 BHK stands at Rs 12 lakh.
Dilip Kumar, who assembles television parts, moved to Noida around 5 years ago, leaving his native place in Bihar for job opportunities. Kumar lives in a unit right above the CITU office, sharing the small space with his wife and two children.
“Our monthly expense for food is Rs 3,000, my children’s education is another Rs 5,000,” said the 46-year-old, who gets his electricity from a prepaid meter—a concession granted to labourers by the local authorities. “Our rent is Rs 3,500—so where exactly can I save to buy any flat?”
The Authority acknowledges that a housing crisis is unfolding. But it’s caught in a bind. Granting electricity to illegal constructions risks legitimising them. Yet with a steady influx of workers, the city’s meticulously planned sectors and tree-lined roads are steadily being edged out by informal settlements.
“We cannot force developers to make affordable housing,” said Khatri, ACEO of Noida. “Through schemes like Kanshiram Yojna (housing scheme for the urban poor), we have built housing and handed it over to people. But the demand and supply are mismatched.”
The Authority’s 2031 master plan is a mix of zones, in line with its vision of an integrated township. But there are no concrete plans for building affordable housing societies, a sore point for even some industrialists like Ekkaa Electronics’ Chandra Prakash Gupta.
With land in short supply and industrialists looking elsewhere, Noida now finds itself in a dilemma: lean into becoming a more cosmopolitan city, revisit its blue-collar factory roots, or attempt to become India’s most successful mixed urban centre.
This article is part of a series called ‘Noida@50’. Read all articles here.
Udit Hinduja is a graduate from the inaugural batch of ThePrint School of Journalism.
(Edited by Prasanna Bachchhav)