The Bharat Audyogik Vikas Yojna (BHAVYA), 2026

Summary

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, officially released the operational guidelines for the Bharat Audyogik Vikas Yojna (BHAVYA) — a flagship Central Sector Scheme designed to establish world-class, investment-ready, plug-and-play industrial smart cities across India. With a total outlay of ₹33,660 crore over six years (FY 2026-27 to FY 2031-32), BHAVYA marks the most ambitious physical-infrastructure push for manufacturing in the post-PLI era.

Key features of the scheme include:

• Development of 100 industrial parks nationwide, with the first 50 selected via a challenge-based competitive framework among states and Union Territories.
• Financial assistance of up to ₹1 crore per acre, plus funding of up to 25% of the cost of external infrastructure for last-mile logistics connectivity.
• Execution through Special Purpose Vehicles (SPVs) incorporated under the Companies Act, 2013, with central support routed as equity contribution tied to state land transfer and project milestones.
• Project Management Agency: National Industrial Corridor Development Corporation (NICDC).
• Three-tier infrastructure framework — Core, Value-Added, and Social — covering everything from CETPs and underground utility corridors to ready-built sheds and on-site worker housing.
• Mandatory integration of every park layout with the PM GatiShakti National Master Plan GIS platform for multi-modal rail-road-port logistics connectivity.

By coupling ready-built infrastructure with streamlined regulatory approvals and multi-modal connectivity, BHAVYA seeks to dismantle long-standing entry barriers for global and domestic manufacturers — operationalizing the Make in India and Aatmanirbharta agendas while positioning India to capture supply-chain diversification opportunities under the China-Plus-One strategy, even as it navigates challenges around state land aggregation, environmental clearances, and labour mobility.

Background & Concept

What is BHAVYA?

Bharat Audyogik Vikas Yojna (BHAVYA) is a Central Sector Scheme of the Government of India aimed at developing 100 plug-and-play industrial smart cities with investment-grade core, value-added, and social infrastructure. The scheme is conceived as the core infrastructure engine for India’s manufacturing-led growth strategy — complementing demand-side instruments like the Production-Linked Incentive (PLI) schemes with supply-side, land-ready industrial parks. The Nodal Department is the DPIIT, and execution is anchored by the NICDC as Project Management Agency.

Evolution of India’s Industrial Infrastructure Push

Initiative	Year	Anchor Idea
National Manufacturing Policy	2011	National Investment & Manufacturing Zones (NIMZ)
Delhi–Mumbai Industrial Corridor (DMIC)	2007 onwards	First major industrial corridor; later expanded to multi-corridor model
Make in India	2014	25 priority sectors; ease-of-doing-business push
National Industrial Corridor Development Programme (NICDP)	2020 onwards	11 industrial corridors with 32 projects under NICDC
Aatmanirbhar Bharat	2020	Self-reliance across strategic sectors
PM GatiShakti National Master Plan	2021	Multi-modal logistics & GIS-based planning
BHAVYA	2026	100 plug-and-play industrial smart cities

About DPIIT and NICDC

• DPIIT (Department for Promotion of Industry and Internal Trade): Under the Ministry of Commerce and Industry; renamed from DIPP in 2019 to expand its mandate to internal trade. Custodian of Make in India, Startup India, the Industrial Policy, National Single Window System (NSWS), and the National Logistics Policy (2022).
• NICDC (National Industrial Corridor Development Corporation): Earlier known as DMICDC; renamed in 2020 with an expanded mandate covering 11 industrial corridors including DMIC, CBIC (Chennai–Bengaluru), AKIC (Amritsar–Kolkata), EBIC (East Coast), HMIC (Hyderabad–Nagpur), and others.

Key Frameworks & Schemes Referenced

• BHAVYA, 2026 — Central Sector Scheme for 100 industrial smart cities; ₹33,660 crore over FY27–FY32.
• Make in India, 2014 — Flagship initiative across 25 priority sectors.
• Aatmanirbhar Bharat Abhiyan, 2020 — Self-reliance framework under the Five Ls.
• National Industrial Corridor Development Programme (NICDP) — 11 industrial corridors anchored by NICDC.
• PM GatiShakti National Master Plan, 2021 — Multi-modal connectivity platform with GIS-based integration of 16 ministries.
• National Logistics Policy, 2022 — Targets reduction of logistics cost to single-digit % of GDP by 2030.
• Production-Linked Incentive (PLI) Schemes, 2020–21 — 14 sectors; demand-side incentive for manufacturing.
• National Single Window System (NSWS), 2021 — One-stop digital platform for investor approvals.
• National Manufacturing Policy, 2011 — Original target of 25% manufacturing share of GDP.
• Companies Act, 2013 — Statutory basis for SPV incorporation under BHAVYA.
• Special Economic Zones (SEZ) Act, 2005 — Earlier industrial cluster framework; under reform via the proposed DESH Bill.

Key Aspects of BHAVYA at a Glance

Domain	Detail
Nature of Scheme	Central Sector Scheme
Nodal Department	DPIIT, Ministry of Commerce and Industry
Project Management Agency	NICDC (National Industrial Corridor Development Corporation)
Total Outlay	₹33,660 crore
Timeline	Six years — FY 2026-27 to FY 2031-32
Total Parks Targeted	100 industrial parks; first 50 via challenge mode
Financial Assistance (per acre)	Up to ₹1 crore per acre
External Infrastructure Funding	Up to 25% of cost
Execution Vehicle	Special Purpose Vehicles (SPVs) under the Companies Act, 2013
Minimum Land — Standard States	100 acres (contiguous, greenfield/eligible brownfield)
Minimum Land — Hilly / NE / UTs / Small States	25 acres
Maximum Macro-Cluster Size	Up to 1,000 acres
Mandatory Linkage	PM GatiShakti National Master Plan GIS layering
Oversight	National Level Steering Committee chaired by Secretary, DPIIT

India’s Position

India’s industrial infrastructure architecture is layered, with BHAVYA serving as the supply-side capstone:

• Manufacturing Targets: India aspires to be a $5 trillion economy with manufacturing at 25% of GDP and a $500 billion electronics manufacturing output by 2030.
• Demand-side Instruments: PLI Schemes across 14 sectors with outlay of ~₹1.97 lakh crore; Semiconductor Mission with ₹76,000 crore; National Green Hydrogen Mission (2023) at ₹19,744 crore.
• Supply-side Infrastructure: BHAVYA, NICDP corridors, Bharatmala (highways), Sagarmala (ports), Dedicated Freight Corridors (DFCs), UDAN (regional air connectivity), all integrated under PM GatiShakti, 2021.
• Ease of Doing Business: India ranks among the top investment destinations in UNCTAD’s World Investment Report; NSWS integrates approvals across 32+ central departments and 28+ states/UTs.
• FDI Architecture: 100% FDI under the automatic route in most manufacturing sectors; record FDI inflows in 2023–24; DPIIT is the nodal department.
• Trade Architecture: TEPA (India–EFTA, 2024) with $100 bn investment pledge, India–UAE CEPA (2022), India–Australia ECTA (2022), India–UK FTA (signed 2025), India–EU FTA (under negotiation) — all funnelling demand into BHAVYA parks.
• Logistics Reform: National Logistics Policy, 2022 targets logistics cost reduction to single-digit % of GDP by 2030; LEADS Index ranks state logistics performance.

Keywords & Definitions

▸ BHAVYA (Bharat Audyogik Vikas Yojna): Central Sector Scheme launched in 2026 to develop 100 plug-and-play industrial smart cities with an outlay of ₹33,660 crore over FY 2026-27 to FY 2031-32.

▸ Central Sector Scheme: Schemes that are 100% funded by the Union Government and implemented by central agencies — distinct from Centrally Sponsored Schemes (CSS) where costs are shared with states.

▸ DPIIT (Department for Promotion of Industry and Internal Trade): Department under the Ministry of Commerce and Industry; renamed from DIPP in 2019; custodian of Make in India, Startup India, NSWS, and FDI policy.

▸ NICDC (National Industrial Corridor Development Corporation): Project Management Agency for India’s industrial corridors; renamed from DMICDC in 2020; oversees 11 industrial corridors including DMIC, CBIC, AKIC, EBIC.

▸ Special Purpose Vehicle (SPV): A separate legal entity incorporated under the Companies Act, 2013 for a specific project, used to ring-fence assets, liabilities, and risks.

▸ PM GatiShakti National Master Plan (2021): A digital, GIS-based platform integrating 16 ministries for multi-modal logistics and infrastructure planning.

▸ National Logistics Policy, 2022: Aims to reduce logistics costs to single-digit % of GDP by 2030; introduces the Unified Logistics Interface Platform (ULIP) and LEADS Index.

▸ Make in India (2014): Government’s flagship initiative targeting 25 priority sectors to position India as a global manufacturing hub.

▸ Aatmanirbhar Bharat Abhiyan (2020): Self-reliance framework structured around Five Ls — Land, Labour, Liquidity, Laws, Logistics.

▸ Production-Linked Incentive (PLI) Scheme: Outcome-based, 14-sector demand-side incentive with outlay of ~₹1.97 lakh crore, launched 2020–21.

▸ National Industrial Corridor Development Programme (NICDP): Programme anchoring 11 industrial corridors including DMIC, CBIC, AKIC, EBIC, HMIC.

▸ CETP (Common Effluent Treatment Plant): Shared infrastructure for collective treatment of industrial effluents to meet pollution norms.

▸ Brownfield vs Greenfield Project: Greenfield projects are built on entirely new sites; brownfield projects build on or expand existing industrial sites.

▸ Special Economic Zone (SEZ) Act, 2005: Earlier framework for export-oriented industrial enclaves; reform proposed via the DESH (Development of Enterprise and Service Hubs) Bill.

▸ National Manufacturing Policy, 2011: First comprehensive manufacturing policy; targeted 25% share of GDP and National Investment & Manufacturing Zones (NIMZs).

▸ National Single Window System (NSWS), 2021: Unified digital platform for investors to apply for clearances across 32+ central departments and 28+ states/UTs.

▸ China-Plus-One Strategy: Global supply-chain diversification trend by multinationals away from over-reliance on China, opening up opportunities for India, Vietnam, Mexico.

▸ Bharatmala Pariyojana (2017): Umbrella highway development programme targeting economic corridors, expressways, and border roads.

▸ Sagarmala Programme (2015): Flagship for port-led development, modernization, and coastal connectivity.

▸ Dedicated Freight Corridors (DFCs): Rail freight-only corridors; Eastern (Ludhiana–Dankuni) and Western (Dadri–JNPT, Mumbai) corridors anchor BHAVYA-region logistics.

▸ LARR Act, 2013: Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act — governs land acquisition for public purposes.

▸ Five Ls of Aatmanirbhar Bharat: Land, Labour, Liquidity, Laws, Logistics — the five drivers of India’s self-reliance push.

Question Section (MCQs)

Q1. With reference to the Bharat Audyogik Vikas Yojna (BHAVYA), consider the following:

(a) It is a Centrally Sponsored Scheme (b) It is a Central Sector Scheme (c) It is a State-led scheme with central advisory support (d) It is a public–private bilateral programme outside the Union Budget

Q2. The Nodal Department and the Project Management Agency for the BHAVYA scheme are, respectively:

(a) Ministry of Heavy Industries and HUDCO (b) DPIIT and NICDC (c) Ministry of MSME and SIDBI (d) NITI Aayog and Invest India

Q3. Consider the following statements regarding the BHAVYA scheme:

1. It has a total outlay of ₹33,660 crore.
2. It will be implemented over six years, from FY 2026-27 to FY 2031-32.
3. It targets the development of 100 industrial parks nationwide.
4. The first 50 parks will be selected through a challenge-based competitive framework.

Which of the statements given above are correct?

(a) 1, 2 and 3 only (b) 2, 3 and 4 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4

Q4. Under the BHAVYA scheme, the minimum contiguous land area required for industrial parks in hilly states, north-eastern states, Union Territories, and smaller states is:

(a) 100 acres (b) 50 acres (c) 25 acres (d) 10 acres

Q5. With reference to financial assistance under the BHAVYA scheme, consider the following statements:

1. Central financial assistance is provided up to ₹1 crore per acre.
2. The scheme funds up to 25% of the cost of external infrastructure.
3. Government support is routed as equity contribution through SPVs linked to state land transfers and project milestones.

Which of the statements given above are correct?

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

Q6. The PM GatiShakti National Master Plan, with which BHAVYA park layouts must be integrated, was launched in:

(a) 2019 (b) 2020 (c) 2021 (d) 2022

Q7. Consider the following statements regarding the National Industrial Corridor Development Corporation (NICDC):

1. It was earlier known as the Delhi–Mumbai Industrial Corridor Development Corporation (DMICDC).
2. It currently oversees the development of 11 industrial corridors in India.
3. It functions under the Ministry of Road Transport and Highways.

Which of the statements given above are correct?

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

Q8. The “Five Ls” under the Aatmanirbhar Bharat framework refer to:

(a) Land, Labour, Liquidity, Laws, Logistics (b) Land, Labour, Liberalization, Laws, Logistics (c) Land, Labour, Liquidity, Liberalization, Logistics (d) Land, Labour, Loans, Laws, Liberalization

Q9. Consider the following statements about India’s industrial infrastructure architecture:

1. The Special Economic Zones (SEZ) Act was enacted in 2005.
2. The National Manufacturing Policy, 2011 targeted a 25% share of manufacturing in GDP.
3. The National Single Window System (NSWS) is operated by NITI Aayog.
4. The Dedicated Freight Corridors include the Eastern (Ludhiana–Dankuni) and Western (Dadri–JNPT) corridors.

Which of the statements given above are correct?

(a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2, 3 and 4 only (d) 1, 3 and 4 only

Q10. Match the following Indian initiatives with their year of launch:

Initiative	Year
A. Make in India	1. 2015
B. Sagarmala	2. 2022
C. PM GatiShakti National Master Plan	3. 2014
D. National Logistics Policy	4. 2021

Select the correct answer:

(a) A-3, B-1, C-4, D-2 (b) A-1, B-3, C-4, D-2 (c) A-3, B-2, C-1, D-4 (d) A-3, B-1, C-2, D-4

Answer Key with Explanations

▸ Q1 → (b) Central Sector Scheme. BHAVYA is a Central Sector Scheme, meaning it is 100% funded by the Union Government and implemented by central agencies (DPIIT/NICDC). Centrally Sponsored Schemes (CSS), in contrast, involve cost-sharing with states.

▸ Q2 → (b) DPIIT and NICDC. The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry is the Nodal Department, while the National Industrial Corridor Development Corporation (NICDC) is the Project Management Agency.

▸ Q3 → (d) 1, 2, 3 and 4. All four statements are correct. BHAVYA has an outlay of ₹33,660 crore over FY 2026-27 to FY 2031-32, targets 100 industrial parks, with the first 50 selected through a challenge-based competitive framework.

▸ Q4 → (c) 25 acres. The scheme specifies a minimum of 100 acres in standard non-hilly states and 25 acres in hilly, north-eastern, Union Territory, and small states, with macro-clusters permitted up to 1,000 acres.

▸ Q5 → (d) 1, 2 and 3. All three statements are correct. The scheme provides up to ₹1 crore per acre, funds up to 25% of external infrastructure cost, and channels central support as equity contribution through SPVs linked to state land transfers and milestones.

▸ Q6 → (c) 2021. The PM GatiShakti National Master Plan was launched in October 2021 to integrate the infrastructure planning of 16 ministries on a single GIS-based digital platform.

▸ Q7 → (a) 1 and 2 only. NICDC was earlier known as DMICDC and was renamed in 2020; it oversees 11 industrial corridors. Statement 3 is wrong — NICDC functions under the DPIIT, Ministry of Commerce and Industry, not the Ministry of Road Transport and Highways.

▸ Q8 → (a) Land, Labour, Liquidity, Laws, Logistics. The Five Ls under Aatmanirbhar Bharat (2020) are Land, Labour, Liquidity, Laws, and Logistics.

▸ Q9 → (b) 1, 2 and 4 only. Statements 1, 2, and 4 are correct. Statement 3 is wrong — the National Single Window System (NSWS) is operated by Invest India under DPIIT, not by NITI Aayog.

▸ Q10 → (a) A-3, B-1, C-4, D-2. Make in India — 2014; Sagarmala — 2015; PM GatiShakti — 2021; National Logistics Policy — 2022.