The Government of India has approved the Bharat Audyogik Vikas Yojna (BHAVYA), a ₹33,660 crore initiative to create 100 plug-and-play industrial parks across the country. Approved by the Cabinet in March 2026 and notified on 10 April 2026, the scheme aims to reduce the time and cost for manufacturers to begin production by providing pre-built infrastructure, utilities and streamlined approvals. The Ministry of Commerce & Industry is implementing BHAVYA in partnership with state governments and private developers.
Key facts
- Total investment: ₹33,660 crore
- Number of parks: 100 plug-and-play industrial parks across India
- Implementation period: FY2026–27 to FY2031–32 (six years)
- First phase: Up to 50 parks to be selected in two rounds
- Financial assistance: Up to ₹1 crore per acre for park development
- Park size: 25 to 1,000 acres depending on project readiness and land availability
- External infrastructure support: Up to 25% of approved funding for roads, rail and logistics connectivity
- Launch: BHAVYA Portal launched in June 2026 for project submission and monitoring
- Existing infrastructure: India currently has 260 plug-and-play industrial parks as of 2026
What is a plug-and-play industrial park
Plug-and-play parks are pre-developed industrial ecosystems where essential infrastructure, utilities and common facilities are ready before companies arrive. Land, power supply, water networks, drainage systems, roads and telecommunications are already in place. Many approvals are also streamlined through single-window systems, allowing manufacturers to move from investment decisions to production much faster than in traditional industrial estates.
This model addresses a key challenge in manufacturing: companies often face long delays while waiting for basic infrastructure to be built. By having everything pre-built, industrial parks reduce startup costs and timelines significantly. This makes locations more attractive to investors, especially as global supply chains become more complex and time-sensitive.
What infrastructure BHAVYA parks will provide
BHAVYA parks will include internal roads, reliable power supply, water and drainage networks, common effluent treatment facilities for waste management, and underground utility corridors that allow maintenance without digging up roads. Ready-built factory sheds, built-to-suit units, testing and certification facilities, and warehousing will be available to tenants.
For worker welfare, parks will feature housing, healthcare facilities and skill development centres. Information and Communication Technology systems will enable digital administration and efficient park management. Additionally, up to 25% of funding can be used for external infrastructure such as connecting roads, railway access and last-mile logistics links to ensure industries can ship goods efficiently.
Who can use these parks and how selection will work
Manufacturing firms, Micro, Small and Medium Enterprises (MSMEs), startups and investors can access the facilities and streamlined approvals available in BHAVYA parks. The scheme does not restrict parks to specific sectors, though sector-specific variants are also being developed, such as the BHAVYA-Rasayan Scheme for three Chemical Parks approved in July 2026.
Selection of parks will happen in phases through a challenge mode, meaning states and developers must apply competitively. The first phase will select up to 50 parks across two rounds. Selection will prioritise project readiness, available land and regional industrial potential to ensure parks can be developed quickly. Each park will be managed by a dedicated Special Purpose Vehicle (SPV) that handles development, operations, investor facilitation and long-term maintenance.
Why this scheme matters for India’s manufacturing sector
India’s manufacturing currently contributes 16–17 percent of GDP and employs over 27 million workers. The Government aims to raise manufacturing’s share to 25 percent of GDP by 2035. The sector is shifting towards higher-value, technology-intensive industries, with medium and high-technology manufacturing now accounting for 46.3% of manufacturing value addition.
As manufacturing becomes more complex and global supply chains diversify, companies seek locations with predictable infrastructure, connectivity and regulatory processes. BHAVYA responds to this need by offering investment-ready locations nationwide. This supports India’s goal to strengthen its role in global manufacturing by making it easier and faster for companies to set up operations.
What this means for you
For manufacturers and MSMEs: You can set up operations faster with lower upfront costs. Infrastructure, utilities and approvals will be pre-arranged, allowing you to focus on production rather than lengthy construction and bureaucratic delays.
For workers: Parks will create significant employment opportunities. Integrated facilities such as skill centres and healthcare will support worker productivity and welfare.
For states and local economies: Industrial parks attract investment, generate jobs and strengthen supply chains. States can submit competitive proposals to host parks.
For students and job seekers: New manufacturing hubs will create diverse employment opportunities across regions, not just in traditional industrial centres.
What happens next
The scheme will be implemented over six years, beginning FY2026–27. In the first phase, proposals will be accepted and evaluated through the BHAVYA Portal. Up to 50 parks will be selected in two competitive rounds, with remaining parks selected in subsequent phases. States and private developers interested in hosting parks should prepare detailed project proposals including land availability, connectivity plans and industrial potential assessments.