BHAVYA seeks to address one of the major challenges faced by manufacturing investors in India: the time and cost involved in acquiring land and developing basic industrial infrastructure.

The scheme will support the development of 100 industrial parks, with the first phase covering up to 50 parks. The parks are expected to provide plug-and-play infrastructure, multimodal connectivity, reliable utilities, digital governance and worker-support infrastructure.

Key features include:

• ₹33,660 crore total financial outlay over six years.
• Development of 100 industrial parks across India.
• Competitive, challenge-based selection of industrial park proposals.
• Both greenfield and eligible brownfield parks can be considered.
• Minimum land requirement is generally 100 acres in non-hilly states, while the requirement is 25 acres in the North-Eastern region, hilly states, UTs and certain smaller states.
• Government support can be up to ₹1 crore per acre, subject to the scheme’s conditions and prescribed funding structure.
• Parks are expected to provide infrastructure such as roads, power, water, connectivity, logistics facilities, digital single-window systems and other common facilities.
• The scheme encourages state government and private-sector participation, including private developer-led industrial parks through appropriate SPVs.
• NICDC has been designated as the Project Management Agency for implementation and monitoring.
• Parks can be developed around specific industrial strengths and sectoral clusters, creating an ecosystem rather than simply providing industrial land.

An important point for companies: BHAVYA funding is primarily directed towards the development of the industrial park and its infrastructure, not as a direct capital subsidy to individual manufacturing companies. The benefit to companies comes through access to ready industrial infrastructure, potentially lower establishment costs and faster project implementation.

BHAVYA is particularly relevant for manufacturing companies planning new facilities or expansion into new locations, especially businesses that can benefit from locating within a sector-focused industrial ecosystem.

Potential beneficiaries include:

• Large Indian manufacturing companies setting up new facilities
• MSMEs and mid-sized manufacturers looking for investment-ready locations
• Companies establishing new manufacturing businesses
• Foreign companies looking to establish manufacturing operations in India
• Companies participating in sector-specific industrial clusters
• Export-oriented manufacturers looking for locations with strong logistics and port connectivity
• Businesses operating in emerging sectors such as electronics, renewable energy, EVs, advanced materials, medical devices, chemicals and other manufacturing segments

Companies do not necessarily apply directly to BHAVYA for a subsidy for their individual manufacturing project. The scheme operates through industrial park proposals submitted by eligible sponsoring agencies, including State Governments and other permitted implementing entities. Companies can therefore participate by:

• Locating their proposed manufacturing facility within a BHAVYA-supported industrial park.
• Engaging with State Governments/industrial development authorities to communicate potential investor requirements.
• Participating in the development of sector-focused industrial parks where they can become anchor investors or major occupants.
• Exploring opportunities to participate in eligible private developer-led industrial parks.

For companies, one of the most important advantages could be the ability to reduce the time between investment decision and commercial production, because key infrastructure is intended to be developed before investors establish their facilities.

The scheme also gives importance to industrial ecosystem, connectivity, site suitability, infrastructure quality, investor interest and policy enablers while evaluating proposals.

For a company evaluating a new manufacturing investment, the first question is not simply “Can I get a BHAVYA benefit?” but rather:

“Can BHAVYA make my proposed manufacturing investment more competitive, and where should I locate it to maximise the benefit?”

Feedback Advisory can support companies across this decision-making process:

• BHAVYA Opportunity Assessment – evaluate whether the company’s proposed manufacturing project can benefit from BHAVYA-supported industrial infrastructure.
• Sector & Location Assessment – identify the most attractive industrial parks, states and locations based on customers, raw materials, logistics, utilities, talent and incentives.
• Government Scheme Mapping – assess BHAVYA alongside relevant Central and State Government incentives to determine the optimal combination of benefits.
• Industrial Park & Cluster Assessment – evaluate existing and proposed industrial parks and identify those aligned with the company’s sector and investment plans.
• Investor/Anchor Engagement Support – support companies in engaging with State Governments, industrial development authorities and park developers where an anchor-investor role could strengthen the opportunity.
• Market & Feasibility Assessment – assess the underlying market opportunity, competition, customer potential and commercial viability of the proposed manufacturing business.
• Location & Site Assessment – compare potential locations on infrastructure, logistics, land, utilities, ecosystem and incentive parameters.
• DPR & Project Support – prepare or support preparation of Detailed Project Reports, business plans and investment proposals required for project development.
• Partner Identification – identify potential technology partners, JV partners, suppliers, customers or industrial park developers.

Why BHAVYA Matters for Manufacturing Investors

BHAVYA could become an important enabler for companies looking to establish new manufacturing capacity in India, particularly where infrastructure readiness and location economics are critical to the investment decision.
For companies considering a new manufacturing business, Feedback Advisory can help connect the dots between market opportunity → sector attractiveness → location → industrial park → government incentives → project feasibility → investment decision.

Note: BHAVYA is a newly operationalised scheme, and project-level benefits will depend on the specific industrial park, sponsoring agency, project structure and applicable guidelines. Companies should therefore evaluate BHAVYA as part of a broader location and government-incentive strategy, rather than assume a fixed subsidy for their individual project.

PM-SETU has a total outlay of ₹60,000 crore, comprising ₹30,000 crore from the Central Government, ₹20,000 crore from State Governments and ₹10,000 crore from industry. The Central share is co-financed by the Asian Development Bank and World Bank through result-based loans.

The scheme will upgrade 1,000 Government ITIs through a Hub-and-Spoke model, comprising 200 Hub ITIs and 800 Spoke ITIs. It also includes capacity augmentation of five National Skill Training Institutes (NSTIs) and the creation of sector-specific National Centres of Excellence.

Key features include:

• ₹60,000 crore overall outlay.
• Upgradation of 1,000 Government ITIs — 200 Hubs and 800 Spokes.
• Modernisation of laboratories, workshops, equipment, classrooms and digital infrastructure.
• Introduction of new and industry-aligned long- and short-term courses, particularly in emerging sectors.
• Stronger industry participation in curriculum design, training delivery, infrastructure and industry exposure.
• Creation of industry-led Special Purpose Vehicles (SPVs) involving Anchor Industry Partners.
• Capacity augmentation of five NSTIs and development of sector-specific National Centres of Excellence.
• Focus on improving employability and employment outcomes, rather than simply increasing training capacity.

An important distinction is that PM-SETU is not designed as a direct subsidy for companies to set up manufacturing projects. Its value to industry lies in creating a structured mechanism through which companies can participate in building the skilled workforce and training infrastructure required by their sector.

For companies considering the RDI Fund, the first challenge is often determining whether their technology/project actually fits the scheme and how it should be positioned.
Feedback Advisory can support companies across the journey, including:

• RDI Opportunity Assessment – assess the company’s technology/product roadmap against RDI priority sectors and eligibility requirements.
• Technology & TRL Assessment – evaluate the current stage of technology development and readiness for commercialisation.
• Market & Commercial Assessment – assess market size, customer demand, applications, competition and commercial potential of the proposed technology.
• RDI Project Structuring – help define the project scope, investment requirement, technology development milestones and commercialisation roadmap.
• Government Scheme Mapping – evaluate RDI alongside other relevant Central and State Government schemes to identify the most suitable funding/incentive combination.
• Business Plan & DPR Support – develop the market, technical and commercial components required to build a compelling project proposal.
• Partner & Ecosystem Identification – identify technology partners, customers, research organisations, investors and other ecosystem stakeholders where required.
• Application & Funding Support – support companies in preparing the necessary documentation and positioning the project for engagement with relevant Second-Level Fund Managers.

The RDI Fund creates an important opportunity for Indian companies to move from technology development to commercial scale with access to patient, lower-cost capital. For companies with a credible technology proposition, the key is to assess eligibility early, structure the project appropriately and build a strong commercial case around the technology.

What does participation involve?

A company can potentially participate by:

• Becoming an Anchor Industry Partner for an identified ITI cluster.
• Working with the State Government to develop an industry-aligned Strategic Investment Plan.
• Helping define the skills and courses required by the local industrial ecosystem.
• Supporting modernisation of training infrastructure and equipment.
• Providing industry exposure, internships, apprenticeships and practical training.
• Participating in curriculum design and training delivery.
• Creating a direct talent pipeline for its own business and supply chain.

The opportunity is particularly interesting for companies establishing themselves in new or emerging sectors, because PM-SETU can potentially help build the skilled workforce required before the industry ecosystem becomes fully mature.

The scheme is already moving into implementation. As of July 2026, six Strategic Investment Plans submitted by Anchor Industry Partners had been approved, covering clusters in Telangana, Andhra Pradesh, Odisha and Gujarat, while 23 States/UTs had floated proposals inviting industry participation.

PM-SETU is particularly relevant for companies operating in manufacturing, infrastructure, engineering, automotive, electronics, energy, mining, logistics and other sectors where availability of skilled technicians and shop-floor talent is critical.
Companies that could potentially participate include:

• Large manufacturing companies
• Industrial groups and OEMs
• Engineering and infrastructure companies
• Sector-specific industry associations
• Companies establishing new manufacturing facilities and anticipating future manpower requirements
• Companies operating in emerging sectors requiring new skill sets
• Industry players willing to become Anchor Industry Partners (AIPs) for ITI clusters

The model is specifically designed to bring industry into the governance and operation of ITI clusters. Industry-led SPVs can propose interventions relating to curriculum redesign, training delivery, infrastructure upgradation and industry exposure, aligned with local industry requirements.

Why PM-SETU Matters to Industry

PM-SETU provides companies with an opportunity to move beyond “hiring trained manpower” to actually helping shape the talent pipeline they need.

For companies investing in new manufacturing businesses, expanding into emerging sectors or developing industrial clusters, participation in PM-SETU can potentially help create a sector-specific workforce, reduce future skill shortages and strengthen the surrounding industrial ecosystem.

Feedback Advisory can help companies connect the dots between business expansion → future manpower requirements → skill gaps → ITI/cluster identification → government engagement → industry partnership → implementation.

The specific participation structure, State-level opportunities and requirements will depend on the ITI cluster, State Government process and applicable PM-SETU guidelines. Companies should therefore assess opportunities on a cluster-by-cluster basis.