The Union Cabinet, chaired by Prime Minister Narendra Modi, approved several landmark decisions on March 18, 2026, aimed at boosting industrial growth and enhancing regulatory transparency. Key highlights include the approval of the Bharat Industrial Development Scheme (BHAVYA) and the Foreign Contribution (Regulation) Act (FCRA) Amendment Bill, while union Minister for Information and Broadcasting, Ashwini Vaishnaw, detailed the outcomes of the meeting, emphasizing the government's focus on self-reliance and infrastructure modernization. These initiatives are designed to align with the 'Make in India' vision, facilitating a strong environment for domestic manufacturing and global exports.
BHAVYA Scheme: Developing 100 Industrial Clusters
The Cabinet has sanctioned ₹33,660 crore for the BHAVYA scheme, which was initially proposed in the Union Budget. Under this initiative, the government plans to develop 100 industrial clusters across the country. These clusters will operate on a 'plug-and-play' model, ensuring that essential infrastructure such as roads, electricity, water, and connectivity are pre-installed for businesses, while according to officials, the scheme aims to develop 100 major industrial cities to attract global investment. The primary objectives include promoting large-scale domestic production, supporting Micro, Small, and Medium Enterprises (MSMEs), and creating significant employment opportunities for the youth through enhanced industrial output and cheaper credit facilities.
FCRA Amendment Bill for Enhanced NGO Accountability
In a move to increase transparency in foreign funding, the Cabinet has approved the FCRA Amendment Bill. The primary goal of this legislation is to enhance the accountability of Non-Governmental Organizations (NGOs) receiving foreign contributions, while the amendments approved on March 18, 2026, introduce stricter monitoring mechanisms to ensure that foreign funds are utilized strictly for their intended purposes. According to the government, these changes are vital for maintaining national security and financial integrity. The bill seeks to streamline the reporting process and ensure that all organizations comply with the updated regulatory framework regarding international financial inflows.
Financial Support for Cotton MSP Operations
The Union Cabinet has approved the reimbursement of ₹1718 crore incurred on Minimum Support Price (MSP) operations for cotton during the 2023-24 season. This financial allocation is intended to cover the costs borne by central and state agencies during the procurement process, while the projects associated with these operations will be developed in collaboration with state governments, Central PSUs, and private developers. Officials stated that the selection of these projects would follow a 'challenge mode' to ensure efficiency. This move is expected to provide financial stability to the cotton sector and ensure that farmers receive the benefits of the MSP regime without administrative delays.
Infrastructure Boost: ₹6969 Crore Highway in Uttar Pradesh
A major infrastructure project in Uttar Pradesh received the Cabinet's nod, involving the construction of a 4-lane access-controlled National Highway-927.04 crore. The project will be executed under the Hybrid Annuity Mode (HAM). This highway is expected to Importantly improve regional connectivity, reduce travel time, and facilitate the smoother movement of goods. By enhancing the logistics network in northern India, the project aims to stimulate local economic activities and provide better access to markets for agricultural and industrial products from the region.
Evaluation Criteria and PM Gatishakti Principles
The Cabinet has established rigorous evaluation criteria for the selection and implementation of new industrial and infrastructure projects. All proposed developments must adhere to the PM Gatishakti principles, which emphasize integrated planning and synchronized implementation, while key evaluation factors include the provision of underground utility corridors, the integration of green energy solutions, and the implementation of Ease of Doing Business reforms. Projects will be selected based on their potential for sustainable growth and technological integration. This structured approach is intended to ensure that public funds are utilized for high-impact projects that contribute to the long-term economic goals of the nation.