Cabinet approves ₹33,660 crore BHAVYA plan to strengthen industrial and logistics infrastructure across India

The Union Cabinet has approved the ₹33,660 crore Bharat Audyogik Vikas Yojana (BHAVYA), a major national initiative aimed at accelerating India’s industrial and logistics growth through the development of 100 plug-and-play industrial parks across the country.

The large-scale infrastructure push is expected to significantly strengthen India’s manufacturing ecosystem while improving logistics connectivity and industrial readiness. Under the BHAVYA scheme, industrial parks ranging from 100 acres to 1,000 acres will be developed with modern, ready-to-use facilities designed to attract domestic and global investors.

According to the government, the proposed parks will feature core infrastructure such as internal roads, power supply, water systems and underground utility corridors, along with value-added facilities including ready-built factory sheds, testing laboratories, warehousing spaces and worker housing. The inclusion of logistics infrastructure is expected to play a critical role in improving supply chain efficiency and reducing operational costs for industries.

A key highlight of the scheme is the provision of financial assistance of up to ₹1 crore per acre for core infrastructure development. In addition, support for external connectivity infrastructure will be provided up to 25 per cent of the total project cost, ensuring seamless integration with highways, freight corridors and existing transport networks.

The BHAVYA initiative is expected to benefit manufacturing companies, MSMEs, startups and global investors looking for plug-and-play industrial spaces. At the same time, it is likely to create substantial opportunities for logistics operators, warehousing firms, service providers and local communities.

Industry experts believe the scheme will support cluster-based industrial development, encourage regional economic growth and generate large-scale direct and indirect employment across manufacturing, logistics and allied sectors.

With a strong focus on sustainability, ease of doing business and future-ready infrastructure, the BHAVYA parks are expected to become key growth engines for India’s industrial expansion and logistics transformation in the coming years.