Manufacturing push: Execution will be key to success of industrial parks

Many industrial areas remain underutilised; in Karnataka, some parks have only about 25% of units operational due to poor connectivity, weak governance, regulatory delays and low demand

The Union Cabinet’s recent approval of the ₹33,660 crore BHAVYA (Bharat Audyogik Vikas Yojana) scheme to develop 100 plug-and-play industrial parks is a significant step towards strengthening India’s manufacturing base, promoting job creation and improving facilitating business. Spread over about 33,000 acres and to be implemented in more than six years, these parks will provide pre-approved land, ready infrastructure, and integrated services, supported by robust single-window clearance systems and deregulation measures led by states. Financial assistance of up to ₹1 crore per acre will be provided for core infrastructure such as internal roads, underground utilities, drainage, and common facilities. Estimates suggest it could generate around 1.5 million direct jobs while strengthening domestic supply chains through cluster-based development. 

Industrial nodes such as the Dholera Special Investment Region, the Shendra-Bidkin Industrial Area, Vikram Udyogpuri, and the Greater Noida Industrial Area highlight the potential of plug-and-play ecosystems, where pre-approved land, integrated infrastructure and multimodal connectivity enable faster industrialisation. The National Industrial Corridor Development Corporation, which is implementing 20 projects across 13 states, has demonstrated how such models can attract both micro, small, and medium enterprises (MSMEs) and large businesses by reducing entry barriers and improving project readiness. However, challenges such as construction delays and long completion timelines often raise costs and erode investor confidence. 

Past experience also offers a cautionary lesson. Many industrial areas across states remain underutilised; for instance, some parks in Karnataka have only about 25 per cent of allotted units operational due to poor connectivity, weak governance, regulatory delays, and lack of demand. Similarly, several special economic zones and industrial corridors have struggled with various issues. Delays in synchronising internal infrastructure with external networks, such as highways, rail freight corridors, and ports, often leave parks operationally constrained. Even when land and basic facilities are ready, firms face bottlenecks in accessing reliable power, water, and digital connectivity, raising operating costs and reducing competitiveness. These gaps highlight that facilitating  business is not merely about policy design but about consistent, on-ground implementation and coordination across agencies. 

To succeed, BHAVYA must focus on execution. The scheme’s emphasis on ensuring seamless last-mile connectivity through integration with PM Gati Shakti would reduce logistics costs and improve competitiveness. Reliable power, water, and digital infrastructure, supported by features such as underground utility corridors, must be guaranteed to ensure uninterrupted industrial operations. The scheme’s challenge-based selection process must prioritise high-quality, investment-ready proposals, and promote sector-specific clustering in areas such as electronics, textiles, pharmaceuticals, and green manufacturing. Linking these parks with skilling ecosystems will be required so that employment generation is both inclusive and sustainable. In essence, BHAVYA emphasises ready ecosystems, integrated planning, and ease of doing business. This could help India deepen its manufacturing base, attract investment, and create jobs at scale. However, its success will depend on translating the ambitious design into efficient and functioning industrial ecosystems. It must also be highlighted that the development of industrial parks should not lead the government to lose focus on the rest of the country. An enabling business environment needs to be created across the land.