India's manufacturing sector is undergoing a structural change under the Rs 33,660 crore Bharat Audyogik Vikas Yojna (BHAVYA) initiative to develop 100 plug-and-play industrial parks across the country. The manufacturing sector now contributes about 16–17 per cent of GDP and employs over 27 million workers. The National Manufacturing Mission aims to raise this share to 25 per cent by 2035, according to a factsheet issued by the government on Wednesday.
The composition of industries is also changing, with medium and high-technology industries accounting for 46.3 per cent of manufacturing value addition. This reflects a shift towards higher-value and technology-intensive manufacturing, the factsheet states.
As industries grow, they need reliable infrastructure, efficient logistics, and predictable approvals. Global supply chains are also diversifying, making well-connected industrial locations more important.
Plug-and-play parks bring these requirements together by providing essential infrastructure and common facilities before industries begin operations. This reduces the time and cost involved in setting up new manufacturing units, said the factsheet.
To expand this approach nationwide, the BHAVYA scheme, approved by the Cabinet in March 2026, is being implemented in partnership with States and private developers. The scheme emphasises increasing manufacturing capacity in the country and ease of doing business through streamlined approvals, effective single-window systems, and investor-friendly reforms.
The plug-and-play industrial ecosystems will reduce entry-level barriers and help industries move from investment to production quickly.
The scheme aims to attract investment, support MSMEs, strengthen supply chains, create jobs, and drive industrial growth across regions.
India's approach to manufacturing growth has evolved over time. Each phase has expanded the country's capacity to support industry and create new economic opportunities, the factsheet explains.
The first phase focused on industrial estates and Special Economic Zones (SEZs), and provided industrial land, common infrastructure, and regulatory incentives. As of February 2026, India had 370 notified SEZs. These zones attracted investments worth Rs 7.82 lakh crore and generated employment for over 31.7 lakh people.
The approach then expanded from individual industrial zones to larger manufacturing hubs across the country. As of October 14, 2026, 4,164 industrial parks have been mapped on the India Industrial Land Bank (IILB).
At the same time, the National Industrial Corridor Development Programme (NICDP) moved beyond providing industrial land. It combined manufacturing zones with utilities, logistics, and urban services, creating more integrated industrial locations.
Industrial nodes such as Dholera Special Investment Region (Gujarat), Shendra-Bidkin Industrial Area (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Integrated Industrial Township Greater Noida (Uttar Pradesh) demonstrated the advantages of integrated planning.
BHAVYA provides financial assistance of up to Rs 1 crore per acre for developing industrial parks. The scheme covers essential components such as internal roads, power supply, water networks, drainage systems, common effluent treatment facilities, value-added infrastructure, and Information and Communication Technology (ICT)-enabled administration.
The scheme supports up to 25 per cent of approved funding to be allocated for external infrastructure such as road, rail, and last-mile logistics connectivity, ensuring seamless integration with the wider transport network.
The scheme will be implemented over six years, from FY2026–27 to FY 2031–32. In the first phase, up to 50 industrial parks will be selected through a challenge mode across two selection rounds. The remaining parks will be selected in subsequent phases, taking the total number of parks supported under BHAVYA to 100.
Each park will span 25 to 1,000 acres depending upon mandatory criteria of land sizes as per the Scheme guidelines.