BHAVYA: Creating Investment-Ready Manufacturing Ecosystems
The Bharat Audyogik Vikas Yojna (BHAVYA) is a ₹33,660 crore initiative approved by the Cabinet in March 2026 and notified on 10 April 2026 to develop 100 plug-and-play industrial parks across India. The scheme aims to provide modern industrial infrastructure, reliable services, and faster approvals to reduce the time needed to set up new industries, thereby attracting investment, supporting MSMEs, strengthening supply chains, creating jobs, and driving industrial growth across regions.
Manufacturing Context and Policy Evolution
India's manufacturing sector currently contributes about 16–17 percent of GDP and employs over 27 million workers. The National Manufacturing Mission aims to raise this share to 25 percent by 2035, with medium- and high-technology industries accounting for 46.3% of manufacturing value addition. The policy evolution has progressed from industrial estates and Special Economic Zones (SEZs) – which as of February 2026 included 370 notified SEZs attracting ₹7.82 lakh crore investments and generating employment for 31.7 lakh people – to the current plug-and-play model. The National Industrial Corridor Development Programme (NICDP) demonstrated integrated industrial locations like Dholera Special Investment Region (Gujarat), Shendra-Bidkin Industrial Area (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Integrated Industrial Township Greater Noida (Uttar Pradesh).
BHAVYA Framework and Implementation
The scheme provides financial assistance of up to ₹1 crore per acre for developing industrial parks covering essential components including internal roads, power supply, water networks, drainage systems, common effluent treatment facilities, value-added infrastructure, and ICT-enabled administration. Underground utility corridors will enable efficient maintenance and uninterrupted operations. Parks will feature ready-built factory sheds, built-to-suit units, testing and certification facilities, warehousing, worker housing, healthcare facilities, skill development centers, and other social amenities. The scheme supports up to 25% of approved funding for external infrastructure such as road, rail, and last-mile logistics connectivity.
Implementation will occur over six years from FY2026–27 to FY2031–32. In the first phase, up to 50 industrial parks will be selected through challenge mode across two selection rounds based on project readiness, land availability, and industrial potential. The remaining parks will be selected in subsequent phases to reach 100 total parks. Each park will span 25 to 1,000 acres as per scheme guidelines and will be managed through dedicated Special Purpose Vehicles (SPVs) overseeing development, operations, investor facilitation, and long-term maintenance. The BHAVYA Portal was launched in June 2026 for implementation, monitoring, project submission, appraisal, and transparent selection process.
Existing Plug-and-Play Infrastructure
India currently has 260 plug-and-play industrial parks, with ₹2,500 crore allocated in the Union Budget 2025–26 for their development. The model is being extended to sector-specific facilities, including the BHAVYA-Rasayan Scheme approved in July 2026 for three Chemical Parks providing common facilities and environmental safeguards. Dholera SIR in Gujarat serves as a successful example with 495 acres allotted across 11 plots, investment potential of ₹97,328 crore, employment potential of 6,000+ jobs, and major projects including Tata Electronics' semiconductor facility and Renew Power solar module manufacturing plant.