BHAVYA: India’s push to build 100 plug-and-play industrial parks
- IBEF
- October 15, 2026
India is strengthening its manufacturing ecosystem through the Bharat Audyogik Vikas Yojna (BHAVYA), a scheme with an outlay of Rs. 33,660 crore (US$ 3.53 billion) to develop 100 plug-and-play industrial parks across the country. Approved by the Union Cabinet in March 2026 and notified on April 10, 2026, the initiative aims to provide industries with ready-to-use infrastructure, common facilities and streamlined approval processes. Manufacturing contributes around 16–17% to India’s gross domestic product and employs more than 27 million workers. As global supply chains diversify, the availability of industrial land, reliable utilities, logistics and predictable regulatory processes is becoming increasingly important for investors. BHAVYA builds on India’s existing industrial infrastructure, including Special Economic Zones, industrial corridors and integrated manufacturing hubs. As of February 2026, India had 370 notified Special Economic Zones, which had attracted investments worth Rs. 7.82 lakh crore (US$ 88.48 billion) and generated employment for more than 31.7 lakh people. The India Industrial Land Bank had also mapped 4,164 industrial parks as of October 14, 2026.
BHAVYA will be implemented over six years, from FY27 to FY32, in partnership with state governments and private developers. The scheme provides financial assistance of up to Rs. 1 crore (US$ 0.11 million) per acre for infrastructure such as internal roads, electricity, water supply, drainage, common effluent treatment facilities and information and communication technology-enabled administration. Eligible developments may also include factory sheds, testing and certification facilities, warehouses, worker housing, healthcare facilities and skill development centres. Up to 25% of approved funding may be allocated to external infrastructure, including road, rail and last-mile logistics connectivity. In the first phase, up to 50 industrial parks will be selected through a challenge-based process, with subsequent phases expanding the network to 100 parks. Dedicated Special Purpose Vehicles will oversee development, investor facilitation, operations and maintenance. The BHAVYA Portal, launched in June 2026, supports project submission and evaluation. By reducing initial infrastructure costs and operational delays, the scheme aims to attract Investments, support micro, small and medium enterprises, strengthen supply chains and generate employment. Integrated developments such as Dholera Special Investment Region in Gujarat demonstrate the potential of coordinated industrial planning to support sectors including semiconductors, aerospace and defence, solar manufacturing and green hydrogen.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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