BHAVYA to Develop 100 Plug-and-Play Industrial Parks
The initiative shifts the focus from providing industrial land and basic infrastructure to developing integrated ecosystems combining utilities, logistics, administrative support and worker amenities. It is intended to attract investment, support micro, small and medium enterprises, strengthen supply chains and generate employment.
Manufacturing accounts for about 16 to 17 per cent of India’s GDP and employs more than 27 mn workers, according to government background material. The National Manufacturing Mission has set a target of raising manufacturing’s contribution to GDP to 25 per cent by 2035, while medium- and high-technology industries already account for 46.3 per cent of manufacturing value addition.
Approved by the Union Cabinet in March 2026 and notified on April 10, BHAVYA will be implemented with state governments and private developers over six years, from FY27 to FY32. It will provide financial assistance of up to Rs. 10 mn per acre for infrastructure such as internal roads, power, water, drainage, common effluent treatment facilities and information and communication technology-enabled administration.
The parks may also include factory sheds, built-to-suit units, testing facilities and warehouses. Worker housing, healthcare, skills centres and other social amenities are included, while up to 25 per cent of approved funding can support external road, rail and last-mile connectivity. Individual parks will cover 25 to 1,000 acres, with dedicated special purpose vehicles overseeing development and maintenance.
Up to 50 parks will be selected in the first phase through a two-round challenge process, with later phases taking the total to 100. The model builds on India’s existing industrial infrastructure, including 260 plug-and-play parks and initiatives such as Dholera in Gujarat. The government expects the network to reduce setup costs and delays while improving access to domestic and international markets.