📌 SUMMARY
- The Union Cabinet has approved the Bharat Audyogik Vikas Yojna (BHAVYA) with an outlay of ₹33,660 crore to establish 100 plug-and-play industrial parks across India.
- These parks will range between 100 and 1,000 acres, enabling flexible and scalable industrial development.
- The scheme introduces a single-window clearance system to reduce bureaucratic delays and improve ease of doing business.
20 Mar 2026, New Delhi
India’s Union Cabinet has approved a major industrial push under the Bharat Audyogik Vikas Yojna (BHAVYA), with a total outlay of ₹33,660 crore. The scheme aims to set up 100 “plug-and-play” industrial parks across the country, marking another step in the government’s effort to transform India into a global manufacturing hub.
Vision Behind BHAVYA: Building Industrial Ecosystems
The BHAVYA scheme is designed to create world-class industrial infrastructure that can unlock India’s manufacturing potential. These parks will not just be land parcels with factories but integrated ecosystems where production, logistics, and services function together efficiently.
Each industrial park is planned to span between 100 and 1,000 acres, allowing flexibility in scale depending on the region and industrial demand. With participation from state governments and private players, the scheme aims to ensure both speed and efficiency in development.
Infrastructure Development and Financial Support
Under the scheme, the government will provide financial support of ₹1 crore per acre to develop core infrastructure. This includes internal roads, underground utilities, drainage systems, common treatment facilities, and administrative setups necessary for smooth industrial operations.
In addition, BHAVYA will support the creation of ready-built factory sheds, customized built-to-suit units, testing laboratories, and warehousing facilities. Worker housing and employee amenities are also part of the plan, indicating a shift toward more holistic industrial planning rather than just production-focused zones.
The scheme further extends support to external infrastructure, funding up to 25% of the cost for improving connectivity and access, which is often a major bottleneck in industrial development.
Reducing Bureaucracy and Enhancing Ease of Doing Business
One of the central features of BHAVYA is the introduction of a single-window clearance system. This is intended to reduce bureaucratic delays and provide faster approvals for businesses setting up operations in these parks.
The scheme also promotes cluster-based development, where manufacturers, suppliers, and service providers operate within the same geographical area. This approach is expected to improve efficiency, reduce costs, and strengthen supply chains.
Building on Existing Industrial Initiatives
BHAVYA builds upon earlier efforts under the National Industrial Corridor Development Programme, which has already laid the groundwork for industrial infrastructure in several regions. The implementation will involve coordination with the National Industrial Corridor Development Corporation, ensuring continuity and alignment with existing projects.
Part of a Larger Manufacturing Push
The approval of BHAVYA comes at a time when the government is aggressively pushing to scale up domestic manufacturing and reduce import dependence. Flagship initiatives like the Production-Linked Incentive (PLI) scheme, with an outlay of ₹1.97 lakh crore, have already begun strengthening key sectors.
In parallel, the Union Budget 2026–27 has introduced several new measures, including a ₹40,000 crore expansion in electronics manufacturing incentives and another ₹40,000 crore allocation under the India Semiconductor Mission 2.0. Additional focus areas include container manufacturing, rare earths, and capital goods.
The government is also targeting seven strategic sectors such as semiconductors, biopharma, electronics, chemicals, and textiles to build resilient supply chains and boost exports.
Conclusion
The BHAVYA scheme represents a comprehensive attempt to modernize India’s industrial landscape by combining infrastructure development, policy support, and ease of doing business reforms. If executed effectively, it could significantly accelerate India’s journey toward becoming a global manufacturing powerhouse rather than just a large consumer market.
