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Cabinet Clears ₹33,660 Crore BHAVYA Scheme To Accelerate Industrial Park Development

• By  Textile Excellence
• March 21, 2026

The Union Cabinet has approved the Bharat Udyog Vikas Yojana, known as BHAVYA, allocating ₹33,660 crore to develop 100 world class industrial parks across India. The initiative aims to strengthen manufacturing competitiveness through investment ready infrastructure and faster approvals.

The scheme targets development over 33,600 acres, enabling integrated plug and play facilities across nearly 100 cities. Central support includes up to ₹1 crore per acre and 25% assistance on external infrastructure costs. Projects will be implemented through a challenge-based model involving states, public sector units and private developers.

India’s manufacturing sector contributes nearly 17% to GDP and is projected to reach US$ 1 trillion by 2030. Industry experts believe large scale industrial clusters can reduce logistics costs by up to 14% and improve export efficiency.

Policymakers expect BHAVYA to attract global investors, scale production capacity and generate significant employment, positioning India as a competitive hub in global supply chains.

BHAVYA targets development over 33,600 acres, enabling integrated plug and play facilities across nearly 100 cities. Central support includes up to ₹1 crore per acre and 25% assistance on external infrastructure costs. Projects will be implemented through a challenge-based model involving states, public sector units and private developers.