Cabinet approves Rs 33K crore BHAVYA industrial cluster scheme

The Bharat Audyogik Vikas Yojana (BHAVYA) is a major initiative approved by the Union Cabinet with a total outlay of ₹33,660 crore. The scheme aims to accelerate industrial growth in India by developing modern industrial infrastructure and strengthening the manufacturing sector. It is part of the broader vision of Atmanirbhar Bharat and Viksit Bharat, focusing on making India a global manufacturing hub.

Objective of the Scheme

The primary objective of the BHAVYA scheme is to promote manufacturing, attract both domestic and foreign investments, and generate large-scale employment opportunities. It also seeks to improve the Ease of Doing Business by providing ready-to-use industrial infrastructure, thereby reducing delays in setting up industries.

Key Features

A major highlight of the scheme is the development of 100 plug-and-play industrial parks across the country over a period of approximately 6 years.

These parks will offer pre-approved land along with essential facilities such as electricity, water, and clearances, enabling industries to begin operations quickly. The parks will typically range between 100 to 1000 acres in size.

The scheme also provides financial assistance of up to ₹1 crore per acre and will be implemented through a Public-Private Partnership (PPP) model involving central government, state governments, and private players.

Additionally, there is a strong emphasis on creating green and sustainable infrastructure.

Economic and Employment Impact

The BHAVYA scheme is expected to significantly boost India’s industrial ecosystem by enhancing manufacturing capacity and improving supply chains.

It is projected to generate around 15 lakh direct jobs, along with numerous indirect employment opportunities in sectors such as logistics and services.

This will contribute to overall economic growth and regional development.

Additional Facts:

The scheme was announced as part of the Union Budget 2026 and is aligned with the National Industrial Corridor Development Programme (NICDP). It complements other government initiatives like the Production Linked Incentive (PLI) Scheme, which also aims to strengthen domestic manufacturing. Industrial corridors such as the Delhi-Mumbai Industrial Corridor (DMIC) further support the objectives of this scheme.