She made the announcement under the Saansad Adarsh Gram Vikas Yojana launched by Prime Minister Narendra Modi.
The decision is likely to end years of neglect of the Uttar Pradesh village across the river Yamuna. It is one of the 179 villages in Mathura district.
While other shrines in the region are visited by Krishna devotees, there are hardly any visitors to Raval.
Asked why she picked Raval, Hema Malini told IANS: “The reasons were both practical and emotional.”
She asked the villagers to focus on education, cleanliness, medi-care and “nashabandi” — abstaining from liquor and drug addiction.
“No one has thought of developing this village. I am determined to restore Raval to its original glory. The village will symbolize women’s empowerment,” she said.
Raval is located nine kilometres from Mathura. It has a population of about 4,500 people.
The village has a small temple and a garden dedicated to Radha. But few pilgrims visit the place as the entire focus has so far been on Vrindavan, the “leela bhoomi” of Lord Krishna, and Barsana.