Government Launches BHAVYA Scheme for Industrial Parks

India's attempts to boost manufacturing go back well before the present scheme. The National Manufacturing Policy, 2011 set out to make manufacturing an 'engine of growth'. It targeted a 25% share of GDP by 2025 and aimed to create 100 million extra manufacturing jobs. To reach these goals, the government relied on tools such as National Investment and Manufacturing Zones (NIMZs) and single-window clearance (one authority approving a project instead of many separate departments). These were meant to cut delays and give industry dedicated, well-planned zones.

The Make in India initiative, launched in 2014, built on this base. It organised reform around easier approvals, new infrastructure like industrial corridors, a list of priority sectors, and a shift in the government's own role from regulator to facilitator. Later, the Production-Linked Incentive (PLI) scheme added direct cash incentives tied to extra output in specific sectors like electronics and pharmaceuticals. Despite these efforts, manufacturing's share of GDP and employment has stayed roughly where it was a decade ago, and its share of global merchandise exports remains low. This shows that incentives alone, without matching physical infrastructure, have had limited effect.

The policy response has since shifted from stand-alone incentives towards building ready infrastructure first. Special Economic Zones (SEZs) gave industrial land and regulatory benefits; as of early 2026 India had 370 notified SEZs. This approach then widened into larger, integrated hubs through the National Industrial Corridor Development Programme (NICDP), which combines manufacturing zones with utilities, logistics and urban services. Nodes such as Dholera (Gujarat), Shendra-Bidkin (Maharashtra), Vikram Udyogpuri (Madhya Pradesh) and Greater Noida (Uttar Pradesh) showed the benefits of this integrated model, setting the stage for a nationwide scheme.

The Technology Acquisition and Development Fund was established as a recent policy initiative to support manufacturing growth through technology development and acquisition. All three initiatives—NIMZs, single-window clearance, and the Technology Acquisition and Development Fund—were active policy measures promoted by the Government of India for manufacturing sector expansion.