Union Commerce and Industry Minister Piyush Goyal on Saturday, 23 May 2026 addressed the media at Vanijya Bhawan, New Delhi, unveiling the scheme guidelines for the Bharat Audyogik Vikas Yojna (BHAVYA) and inviting States and Union Territories to apply for the establishment of world-class industrial parks. The minister also announced an upcoming visit to Canada focused on advancing bilateral economic ties, including negotiations on a Free Trade Agreement.

Context

The BHAVYA scheme was launched just two months ago by the Modi Government, and Saturday's announcement marks the release of its formal operational guidelines. States and Union Territories are now invited to submit proposals for the establishment of industrial parks that meet world-class standards. The move signals the government's intent to accelerate ground-level implementation of the programme.

Speaking to media at Vanijya Bhawan — the headquarters of the Ministry of Commerce and Industry in New Delhi — Goyal highlighted how the parks will be equipped with 'plug-and-play infrastructure,' designed to allow businesses to begin operations with minimal setup friction. He underscored that the parks are expected to 'boost industrial growth, attract investments, generate employment opportunities, and enhance ease of doing business.'

Policy Backdrop

The BHAVYA scheme sits within a broader arc of industrial policy that stretches back to the Make in India initiative launched in 2014, which sought to raise manufacturing's share of GDP and attract foreign direct investment. The National Industrial Corridor Development Programme, expanded in 2015-16, similarly aimed at creating integrated industrial townships with plug-and-play infrastructure — a model BHAVYA appears to build upon and scale.

The plug-and-play model addresses a persistent friction point for investors: delays caused by fragmented land, utility, and regulatory clearances. By bundling these services within a park framework, the government hopes to compress the time between investment commitment and production start, making India more competitive against regional manufacturing hubs.

Canada Visit and FTA Track

Separately, Goyal briefed media on his upcoming visit to Canada, where bilateral engagements will focus on 'strengthening economic cooperation, including discussions on the Free Trade Agreement for the shared growth of both nations.' India and Canada have pursued a Comprehensive Economic Partnership Agreement (CEPA) since formal negotiations began in 2010, with talks relaunched in 2022 after a period of pause.

Canada is a G7 economy and a significant destination for Indian exports and the Indian diaspora. Progress on a bilateral FTA would open new market-access channels for Indian goods and services while potentially unlocking greater Canadian investment into India's manufacturing and technology sectors. Any joint statements or agreed deliverables from the visit will be closely watched by trade observers.

Stakeholders and Impact

State governments and Union Territories are the immediate stakeholders, as they must now formulate and submit proposals to benefit from BHAVYA funding and support. For the manufacturing sector, the scheme promises ready-to-use industrial land with utilities, logistics connectivity, and regulatory ease — factors that consistently rank among the top concerns of domestic and foreign investors.

For the industrial workforce, the government's stated goal of generating employment through these parks carries particular weight at a time when job creation remains a central political and economic priority. The scheme's success will ultimately be measured by the number of operational units, jobs created, and investment mobilised within the parks.

What's Next

The immediate focus shifts to State and UT governments, which must evaluate the published guidelines and submit applications for park establishment. The quality and speed of state-level responses will determine how quickly BHAVYA translates from policy to physical infrastructure. On the trade front, the outcomes of Goyal's Canada visit — particularly any progress on the FTA text or a timeline for conclusion — will set the tone for India-Canada economic relations in the near term. A concluded agreement would mark one of India's most significant bilateral trade deals with a developed economy in recent years.