The six-year BHAVYA programme will fund serviced industrial sites with roads, utilities and logistics links to shorten the path from investment decisions to factory production.
India is moving to reshape its manufacturing base through a new industrial park programme that officials say is meant to speed up investment, improve logistics and make it easier for factories to begin production. A government factsheet issued on Wednesday said the Bharat Audyogik Vikas Yojna, or BHAVYA, will support the development of 100 plug-and-play industrial parks across the country, backed by a total outlay of Rs 33,660 crore.
The plan comes as manufacturing accounts for about 16% to 17% of gross domestic product and employs more than 27 million workers, according to the government. Officials want that share to rise to 25% by 2035 under the National Manufacturing Mission. The factsheet also said the industrial mix is shifting towards more advanced activity, with medium- and high-technology industries now accounting for 46.3% of manufacturing value added, suggesting a gradual move away from lower-value production.
The central idea behind BHAVYA is to reduce the delay and uncertainty that often slow industrial projects. Rather than asking companies to assemble land, power, water, drainage and regulatory clearances one by one, the scheme is designed to offer serviced sites with core infrastructure already in place. That approach, the government says, should cut set-up costs and shorten the time between an investment decision and actual production.
According to the Cabinet approval granted in March 2026, the scheme will be run with state governments and private developers over six years, from FY2026-27 to FY2031-32. Operational guidelines released by the Department for Promotion of Industry and Internal Trade say the first phase will select up to 50 parks through a challenge-based process, with proposals judged on infrastructure quality, connectivity, industrial ecosystem strength, digital readiness and sustainability. The remaining parks will be taken up later, bringing the total to 100.
The parks are expected to receive financial support of up to Rs 1 crore per acre for internal roads, power systems, water supply, drainage, common effluent treatment facilities, value-added infrastructure and information and communication technology-enabled administration. Up to 25% of approved funding may also go towards external links such as road, rail and last-mile logistics connections. Industrial parks under the scheme are to range from 25 acres to 1,000 acres, depending on the land requirements set out in the guidelines.
The latest push builds on earlier phases of India’s industrial policy. The government factsheet pointed to the country’s network of Special Economic Zones, of which 370 were notified by February 2026, as well as the 4,164 industrial parks mapped on the India Industrial Land Bank by October 14, 2026. It also highlighted the National Industrial Corridor Development Programme, which pairs manufacturing zones with utilities, logistics and urban services. Sites such as Dholera in Gujarat, Shendra-Bidkin in Maharashtra, Vikram Udyogpuri in Madhya Pradesh and Greater Noida in Uttar Pradesh are being held up as examples of integrated planning.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
