Haryana Progressive MSME & Export Promotion Policy 2026: Up to ₹4 Crore Capital Subsidy for Manufacturing Units
The Government of Haryana has introduced the Haryana Progressive MSME & Export Promotion Policy 2026, which came into effect on 29 July 2026. The policy is designed to strengthen the state’s manufacturing ecosystem, encourage exports, attract new investments, and support the expansion of Micro, Small, and Medium Enterprises (MSMEs).
This new policy offers significant incentives for businesses planning to establish or expand manufacturing units in Haryana. One of its most attractive features is the enhanced Capital Investment Subsidy, which now provides benefits of up to ₹4 Crore for eligible manufacturing projects.
If you are planning to invest in Haryana, this policy can substantially reduce your project cost and improve your business viability.
Haryana Udhyam Vikas Mission
One of the major initiatives introduced under this policy is the Haryana Udhyam Vikas Mission.
The mission focuses on promoting manufacturing units operating in identified Thrust Sectors through attractive capital subsidies and additional incentives.
Businesses establishing new manufacturing facilities or expanding existing units in these sectors can avail substantial financial assistance.
Eligible Thrust Sectors
The Capital Investment Subsidy is available for manufacturing units operating in the following thrust sectors:
1. Auto & Auto Components
Including Electric Vehicle (EV) components and related manufacturing.
2. Aerospace & Defence
Manufacturing of aerospace equipment, defence products, and allied components.
3. General Engineering, Metal Products & Steel Fabrication
Engineering products, fabricated metal structures, industrial machinery, and related manufacturing.
4. Electrical & Electronics
Electrical equipment, electronic products, electronic components, and related manufacturing.
5. Pharmaceuticals & Medical Devices
Manufacturing of medicines, pharmaceutical products, diagnostic equipment, and medical devices.
6. Rubber & Plastics
Including toys, sports goods, plastic products, rubber-based products, and industrial components.
7. Food Processing
Manufacturing and value addition in the food processing sector.
8. Renewable Energy & Green Industries
One of the most significant additions in the new policy.
This sector includes:
- Solar Cells & Solar Panels
- Circular Economy Projects
- Green Manufacturing
- Biomass Energy
- Biomass Pellets
- Biomass Briquettes
- Agricultural Waste to Energy Projects
- Bioenergy Components
- Renewable Energy Equipment Manufacturing
This creates tremendous opportunities for businesses working in the biomass and clean energy sectors.
9. Textile & Apparel
Manufacturing of textile products, garments, apparel, technical textiles, and allied products.
New Area Classification
The previous ABCD industrial classification has been removed.
Instead, Haryana has introduced four development-based categories:
- Core Area
- Intermediate Area
- Sub Prime Area
- Prime Focus Area
The level of subsidy depends on the location of the manufacturing project.
Capital Investment Subsidy
The biggest attraction of the policy is the enhanced Capital Investment Subsidy.
Core Area
- Subsidy: 15%
- Maximum Benefit: ₹2 Crore
Intermediate Area
- Subsidy: 20%
- Maximum Benefit: ₹2.5 Crore
Sub Prime Area
- Subsidy: 25%
- Maximum Benefit: ₹3 Crore
Prime Focus Area
Businesses setting up manufacturing units in Focus Areas can receive:
- Subsidy: Up to 50%
- Maximum Benefit: ₹4 Crore
This is a significant improvement over the previous policy, where the maximum capital subsidy was much lower and primarily available only to micro enterprises.
Eligible Businesses
The policy covers:
- New Manufacturing Units
- Expansion Projects
- Micro Enterprises
- Small Enterprises
- Medium Enterprises
This makes the scheme beneficial for both new entrepreneurs and existing manufacturers looking to expand.
Additional Incentives
Apart from the Capital Subsidy, the policy provides several additional incentives.
Additional 5% Incentive
An extra incentive is available for eligible entrepreneurs such as:
- Women Entrepreneurs
- SC Entrepreneurs
- Divyang Entrepreneurs
- Ex-Servicemen
- Agniveers establishing manufacturing units
These categories receive additional support to encourage inclusive industrial development.
Additional 10% Incentive for Export-Oriented Units
Manufacturing businesses engaged in exports can receive additional incentives.
The objective is to improve Haryana’s export competitiveness while encouraging MSMEs to enter international markets.
Reach Us
Call Us : 8683898080
E-mail Us : sales@kipfinancial.com
KIP Financial Consultancy Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
Leave a Comment