In a major push to strengthen India’s manufacturing base, the Union Cabinet has approved the ₹33,660 crore Bharat Audyogik Vikas Yojana (BHAVYA) scheme for the development of 100 world-class industrial parks across the country.
The new scheme is aimed at creating investment-ready, plug-and-play industrial parks with modern infrastructure, making it easier for businesses to set up operations quickly and efficiently. These parks are expected to come up over nearly 33,600 acres of land and will be developed in partnership with states, while private players and central public sector enterprises can also participate through the state governments.
Under the scheme, the Centre will provide significant financial support, including up to ₹1 crore per acre and as much as 25 per cent of the cost for external connectivity infrastructure. This support is expected to help states build industrial parks with strong road, utility, and logistics links from the beginning.
The industrial parks will be developed through a challenge-based model, meaning states will compete by submitting strong proposals. Project sites ranging from 100 to 1,000 acres will be selected based on several factors, such as proximity to industrial hubs, ports, skill centres, and overall connectivity. For north-eastern and hilly states, the minimum contiguous land requirement has been relaxed to 25 acres.
Officials said the scheme is sector-agnostic, meaning it is not limited to any one industry. This makes it suitable for a wide range of manufacturing sectors, from traditional industries to emerging areas. In the first phase, the government plans to build 50 high-quality industrial parks with strong infrastructure and sustainability features.
States will be required to form a special purpose vehicle (SPV) for these projects and ensure proper planning and development authority. They will also need to provide single-window clearances so that companies can move into the parks and begin operations without facing long procedural delays.
What makes BHAVYA especially important is its focus on building not just industrial plots, but complete industrial ecosystems. The parks are expected to include core infrastructure, value-added infrastructure, social infrastructure, and external connectivity, along with a focus on green energy systems and sustainable development.
The government says these parks will be designed as future-ready and environmentally responsible industrial spaces, with features such as integrated underground utility corridors and a no-dig environment for smoother maintenance and uninterrupted operations. The larger aim is to create industrial zones that are efficient, reliable, and globally competitive.
The scheme is likely to benefit a wide range of businesses, especially MSMEs, startups, and global investors looking for ready-to-use industrial infrastructure. Apart from supporting manufacturing growth, the parks are also expected to generate employment and create opportunities for logistics firms, service providers, and local communities around them.
Commerce and Industry Minister Piyush Goyal said the scheme is built around the goals of creating next-generation industrial infrastructure, improving ease of doing business, and building sustainable industrial parks that can support long-term growth. He said BHAVYA would help strengthen supply chains, reduce costs through cluster-based development, and support India’s broader vision of Atmanirbhar Bharat.
Overall, the approval of the BHAVYA scheme marks a big step in India’s effort to become a stronger global manufacturing destination. By creating well-planned industrial parks with modern facilities, the government is trying to make industrial growth faster, smoother, and more competitive.