Cabinet approves future budget of ₹33,660 crore
 "manufacturing sector, economy")
The cabinet said Bhavya is expected to generate both direct and indirect employment in manufacturing, logistics and services.
Union Cabinet Bharat Industrial Development Scheme (BHAVYA) with an outlay of ₹33,660 crore was approved on Wednesday to boost manufacturing and investment across the country.
The cabinet said the scheme aims to support the development of 100 industrial parks and will be implemented by the Center in partnership with state governments and private sector players.
Under the scheme, parks ranging from 100 to 1,000 acres will be developed to provide ready infrastructure and pre-approved land to help companies move faster from planning to production. The Cabinet said this will reduce entry barriers for investors and improve ease of doing business.
Financial assistance up to ₹1 crore per acre will also be provided for key infrastructure, including:
- Internal roads, underground utilities and drainage
- General treatment facilities and administrative systems
- Ready Factory Shed and Warehouse
- Testing laboratories and built-to-suit units
- Labor housing and related facilities
Besides, support up to 25 per cent of the project cost for external infrastructure to improve connectivity will also be extended, the cabinet said.
How will projects be selected for the grand scheme?
Projects will be selected through a challenge-based process that will focus on prioritizing “reform-oriented” and “investment-ready” proposals.
The scheme is expected to generate both direct and indirect employment in manufacturing, logistics and services. It will be implemented in all states and union territories with a focus on cluster-based development to strengthen supply chains. It targets a wide range of stakeholders including manufacturing companies. MSMEStartups and global investors, as well as workers, logistics providers and local communities, the cabinet said.
first published: March 18 2026 | 4:51 pm First
