Bharat Audyogik Vikas Yojna and India’s Industrial Growth
1
India’s manufacturing sector contributes approximately 16–17% of Gross Domestic Product (GDP) and employs over 27 million workers. The National Manufacturing Mission aims to increase manufacturing’s share of GDP to 25% by 2035. Medium- and high-technology industries account for 46.3% of manufacturing value addition, reflecting the growing importance of technology-intensive manufacturing.
2
Bharat Audyogik Vikas Yojna (BHAVYA) was approved by the Union Cabinet in March 2026 and notified on 10 April 2026, with a total financial outlay of ₹33,660 crore. The scheme aims to develop 100 plug-and-play industrial parks across India to expand manufacturing capacity, attract investment, support Micro, Small and Medium Enterprises (MSMEs), strengthen supply chains, generate employment and improve ease of doing business.
3
India’s industrial infrastructure initially developed through industrial estates and Special Economic Zones (SEZs), which provide industrial land, common infrastructure and regulatory incentives. As of February 2026, India had 370 notified SEZs, attracting investments worth approximately ₹7.82 lakh crore and generating employment for more than 31.7 lakh people.
4
As of 14 October 2026, 4,164 industrial parks had been mapped on the India Industrial Land Bank (IILB). The National Industrial Corridor Development Programme (NICDP) promotes integrated industrial townships combining manufacturing facilities, utilities, multimodal connectivity, logistics and urban services. Important industrial nodes include Dholera Special Investment Region in Gujarat, Shendra-Bidkin Industrial Area in Maharashtra, Vikram Udyogpuri in Madhya Pradesh and Integrated Industrial Township Greater Noida in Uttar Pradesh.
5
Plug-and-play industrial parks are pre-developed manufacturing ecosystems where land, trunk infrastructure, utilities, common facilities and streamlined approvals are provided before industrial operations begin. Trunk infrastructure includes major shared facilities such as roads, electricity, water supply, drainage, sewerage and streetlights. India has approximately 260 plug-and-play industrial parks, while the Union Budget 2025–26 allocated ₹2,500 crore for developing such industrial infrastructure.
6
BHAVYA provides financial assistance of up to ₹1 crore per acre for industrial park development. The scheme covers internal roads, electricity supply, water distribution networks, drainage, common effluent treatment facilities, value-added infrastructure and Information and Communication Technology (ICT)-enabled administration. Underground utility corridors are proposed to create a no-dig environment, facilitating maintenance without disrupting industrial activities.
7
Industrial parks developed under BHAVYA will include ready-built factory sheds, built-to-suit manufacturing units, testing and certification facilities, warehousing and common industrial services. Worker welfare infrastructure includes housing, healthcare facilities, skill development centres and other social amenities. These facilities are intended to reduce initial establishment costs and accelerate the transition from investment to commercial production.
8
Under BHAVYA, up to 25% of approved funding may be allocated to external infrastructure, including road connectivity, rail infrastructure and last-mile logistics. These investments aim to integrate industrial parks with wider transport and supply-chain networks. The scheme also promotes streamlined clearances, effective single-window systems and investor-friendly regulatory reforms.
9
BHAVYA will be implemented over six financial years, from FY 2026–27 to FY 2031–32. In the first phase, up to 50 industrial parks will be selected through a competitive challenge-mode process conducted in two selection rounds. The remaining parks will be selected in subsequent phases, bringing the total number of supported industrial parks to 100. Selection criteria include project readiness, land availability and industrial potential.
10
Individual industrial parks under BHAVYA will cover areas ranging from 25 to 1,000 acres, subject to the mandatory land-size criteria specified in the scheme guidelines. Projects will be implemented and managed through dedicated Special Purpose Vehicles (SPVs), responsible for infrastructure development, operations, investor facilitation and long-term maintenance. The scheme will operate in partnership with State Governments and private developers.
11
The BHAVYA Portal was launched in June 2026 to support implementation and monitoring of the scheme. It facilitates project submission, appraisal and evaluation and supports a transparent, competitive selection process. Manufacturing enterprises, MSMEs, startups and investors can benefit from the shared infrastructure, common facilities and streamlined approval mechanisms developed under BHAVYA.
12
The Government approved the BHAVYA-Rasayan Scheme in July 2026 for developing three Chemical Parks. These parks will provide sector-specific common infrastructure and environmental safeguards for chemical manufacturing. The initiative extends the plug-and-play industrial development approach to specialised industrial clusters.
13
Dholera Special Investment Region (SIR) in Gujarat represents an integrated industrial city developed with planned roads, electricity, water, gas, drainage, digital networks and underground utility infrastructure. Its industrial ecosystem focuses on semiconductors, aerospace and defence, solar manufacturing, green hydrogen, biotechnology and heavy engineering. Connectivity to ports, airports, expressways and the Dedicated Freight Corridor supports access to domestic and international markets.
14
In Dholera Special Investment Region, 495 acres of industrial land have been allotted across 11 plots, representing a potential investment of ₹97,328 crore and employment potential exceeding 6,000 jobs. Major industrial projects include Tata Electronics’ semiconductor facility and Renew Power’s solar module manufacturing plant. The region demonstrates the integration of industrial land development, infrastructure connectivity and high-technology manufacturing.
15
India’s industrial development framework has evolved from pre-2020 industrial estates and SEZs towards integrated industrial corridors and nationwide plug-and-play ecosystems. The NICDP introduced planned industrial nodes with multimodal connectivity and urban infrastructure, while the Union Budget 2026–27 emphasised sector-specific plug-and-play parks, including chemical parks and PM MITRA. BHAVYA extends this approach through a nationwide programme of 100 proposed industrial parks with infrastructure readiness, investor facilitation and reform-linked implementation.
Must Know terms
1. Plug-and-Play Industrial Parks
Plug-and-Play Industrial Parks are pre-developed industrial ecosystems where land, essential infrastructure, utilities and common facilities are provided before manufacturing operations begin. They reduce establishment costs, infrastructure delays and regulatory barriers, allowing enterprises to begin production more quickly.
2. Trunk Infrastructure
Trunk Infrastructure refers to major shared infrastructure that serves industrial areas and surrounding developments. It includes main roads, electricity networks, water supply, drainage, sewerage and streetlights. Under BHAVYA, such facilities support industrial connectivity and essential services.
3. Special Purpose Vehicle (SPV)
A Special Purpose Vehicle is a dedicated entity established to implement and manage a specific project. Under BHAVYA, SPVs are responsible for industrial park development, operations, investor facilitation and long-term infrastructure maintenance.
4. National Industrial Corridor Development Programme (NICDP)
The National Industrial Corridor Development Programme promotes integrated industrial townships with manufacturing facilities, utilities, multimodal connectivity, logistics and urban services. Its industrial nodes include Dholera Special Investment Region in Gujarat, Shendra-Bidkin Industrial Area in Maharashtra and Vikram Udyogpuri in Madhya Pradesh.
5. India Industrial Land Bank (IILB)
The India Industrial Land Bank provides information on mapped industrial parks across India. As of 14 October 2026, 4,164 industrial parks had been mapped on the platform, supporting the identification of industrial locations and infrastructure availability.
6. BHAVYA-Rasayan Scheme
The BHAVYA-Rasayan Scheme was approved in July 2026 for the development of three Chemical Parks. It extends the plug-and-play industrial development model to chemical manufacturing by providing sector-specific common facilities and environmental safeguards.
Multiple-Choice Questions
1. With reference to India’s manufacturing sector, consider the following statements:
1. Manufacturing contributes approximately 16–17% of India’s Gross Domestic Product.
2. The National Manufacturing Mission aims to increase manufacturing’s contribution to 25% of GDP by 2030.
3. Medium- and high-technology industries account for 46.3% of manufacturing value addition.
4. India’s manufacturing sector employs fewer than 27 million workers.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 1 and 3 only
(c) 2 and 4 only
(d) 1, 3 and 4 only
2. With reference to Bharat Audyogik Vikas Yojna (BHAVYA), consider the following statements:
1. It was approved by the Union Cabinet in March 2026.
2. It was notified on 10 April 2026.
3. It has a financial outlay of ₹33,660 crore.
4. It aims to establish 1,000 plug-and-play industrial parks across India.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
3. Consider the following statements regarding India’s Special Economic Zones (SEZs) and industrial infrastructure:
1. As of February 2026, India had 370 notified Special Economic Zones.
2. These SEZs had attracted investments worth approximately ₹7.82 lakh crore.
3. Employment generated by SEZs had exceeded 31.7 million people.
4. The India Industrial Land Bank had mapped 4,164 industrial parks by October 2025.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2 and 4 only
(d) 1, 3 and 4 only
4. Consider the following pairs regarding industrial nodes under India’s industrial development framework:
1. Dholera Special Investment Region — Gujarat
2. Shendra-Bidkin Industrial Area — Madhya Pradesh
3. Vikram Udyogpuri — Madhya Pradesh
4. Integrated Industrial Township Greater Noida — Uttar Pradesh
Which of the pairs given above are correctly matched?
(a) 1 and 2 only
(b) 2, 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 3 and 4 only
5. With reference to plug-and-play industrial parks and trunk infrastructure, consider the following statements:
1. Trunk infrastructure includes major shared facilities such as roads, electricity networks, water supply and drainage systems.
2. Under the plug-and-play model, essential infrastructure is developed only after manufacturing operations commence.
3. Plug-and-play industrial parks may provide streamlined approvals through single-window systems.
4. India had approximately 2,600 plug-and-play industrial parks as mentioned in the given data.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 3 and 4 only
6. With reference to financial assistance and infrastructure development under BHAVYA, consider the following statements:
1. The scheme provides financial assistance of up to ₹1 crore per acre for industrial park development.
2. Up to 25% of approved funding must exclusively be allocated to internal administrative expenditure.
3. Underground utility corridors are proposed to create a no-dig environment for maintenance.
4. Common effluent treatment facilities are excluded from the scheme’s infrastructure components.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(d) 1 and 3 only
7. Consider the following statements:
Statement-I:
Plug-and-play industrial parks can reduce the initial establishment costs and implementation delays faced by manufacturing enterprises.
Statement-II:
These parks provide pre-developed infrastructure, ready-built industrial facilities, utilities and common services before enterprises commence production.
Which one of the following is correct?
(a) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I.
(b) Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I.
(c) Statement-I is correct, but Statement-II is incorrect.
(d) Statement-I is incorrect, but Statement-II is correct.
8. With reference to the implementation framework of BHAVYA, consider the following statements:
1. The scheme is scheduled for implementation over six financial years, from FY 2026–27 to FY 2031–32.
2. All 100 proposed industrial parks will be selected during the first implementation phase.
3. The first phase provides for the selection of up to 50 industrial parks through two competitive challenge-mode rounds.
4. Project readiness and land availability are excluded from the selection criteria.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 1, 2 and 3 only
(c) 2 and 4 only
(d) 1, 3 and 4 only
9. With reference to Special Purpose Vehicles (SPVs) under BHAVYA, consider the following statements:
1. SPVs are responsible for industrial park development, operations, investor facilitation and long-term maintenance.
2. Industrial parks under the scheme may cover areas ranging from 25 to 1,000 acres, subject to specified land-size criteria.
3. SPVs can be established only by the Union Government, without participation from States or private developers.
4. The scheme restricts access to industrial park facilities exclusively to large manufacturing enterprises.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 2 only
(d) 1, 3 and 4 only
10. With reference to the BHAVYA Portal, consider the following statements:
1. It was launched in June 2026.
2. It facilitates project submission, appraisal, evaluation and monitoring.
3. It replaces the role of Special Purpose Vehicles in managing industrial parks.
4. Its selection mechanism is based exclusively on the chronological order of project submissions.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 2 and 4 only
(c) 1, 2 and 3 only
(d) 1 and 2 only
11. Consider the following pairs regarding the BHAVYA-Rasayan Scheme:
1. Approval — July 2026
2. Proposed development — Three Chemical Parks
3. Primary objective — Exclusive promotion of textile exports
4. Environmental safeguards — Excluded from the proposed parks
Which of the pairs given above are correctly matched?
(a) 1, 2 and 3 only
(b) 1 and 2 only
(c) 2 and 4 only
(d) 1, 3 and 4 only
12. With reference to Dholera Special Investment Region, consider the following statements:
1. Its industrial ecosystem focuses on sectors including semiconductors, aerospace, solar manufacturing and green hydrogen.
2. Connectivity to ports, airports, expressways and the Dedicated Freight Corridor supports its access to domestic and international markets.
3. It is located in Maharashtra and forms part of the Shendra-Bidkin Industrial Area.
4. Its industrial infrastructure development excludes underground utility networks.
How many of the statements given above are correct?
(a) Only two
(b) Only one
(c) Only three
(d) All four
13. With reference to industrial development at Dholera Special Investment Region, consider the following statements:
1. A total of 495 acres of industrial land had been allotted across 11 plots.
2. The region had an estimated investment potential of ₹97,328 crore.
3. Its estimated employment potential exceeded 60,000 jobs.
4. Major projects include Tata Electronics’ solar module manufacturing facility and Renew Power’s semiconductor fabrication facility.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 2 only
(d) 1, 3 and 4 only
14. Arrange the following developments associated with India’s plug-and-play industrial infrastructure in chronological order:
1. Allocation of ₹2,500 crore for plug-and-play industrial parks in the Union Budget 2025–26
2. Union Cabinet approval of BHAVYA
3. Notification of BHAVYA on 10 April 2026
4. Launch of the BHAVYA Portal
5. Approval of the BHAVYA-Rasayan Scheme
Select the correct answer using the code given below.
(a) 1-2-3-4-5
(b) 1-3-2-4-5
(c) 2-1-3-5-4
(d) 1-2-4-3-5
15. With reference to the evolution of India’s industrial development policies, consider the following statements:
1. The earlier industrial development approach emphasised industrial estates and Special Economic Zones with industrial land, common infrastructure and regulatory incentives.
2. The National Industrial Corridor Development Programme expanded the approach towards integrated industrial townships with manufacturing zones, multimodal connectivity, logistics and urban services.
3. The Union Budget 2026–27 discontinued sector-specific industrial park initiatives in favour of Special Economic Zones alone.
4. BHAVYA restricts the development of its 100 proposed industrial parks exclusively to existing Special Economic Zones.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1 and 4 only
(d) 1 and 2 only
0 comment