Haryana ESDM Policy 2026: A Major Opportunity for Electronics Manufacturers, Semiconductor Investors & Startups
Hello, Businessman!
Today, I am sharing an important development for entrepreneurs, industrialists, investors, manufacturers, and startups who are planning to enter or expand in the electronics and semiconductor sector.
The Government of Haryana has introduced the Haryana Electronics System Design & Manufacturing (ESDM) Policy 2026, with the vision of making Haryana a leading destination for electronics manufacturing, semiconductor investments, innovation, and exports.
With a target of attracting ₹10,000 crore in investments and generating 75,000 employment opportunities, this policy could create significant opportunities for businesses across the electronics value chain.
Let’s understand the major highlights and potential benefits of this policy.
What Is the Haryana ESDM Policy 2026?
The Haryana ESDM Policy 2026 aims to develop a globally competitive electronics ecosystem by encouraging manufacturing, research and development, product design, semiconductor-related activities, and export-oriented businesses.
The policy is designed to support both new investors and eligible existing units looking to expand their operations in Haryana.
Key Policy Targets:
Attract ₹10,000 crore in investments.
Generate 75,000 employment opportunities.
Increase Haryana’s contribution to India’s electronics exports from 2.5% to 5%.
Develop Electronics Manufacturing Clusters, industrial parks, and Centres of Excellence.
Encourage innovation, research, and advanced electronics manufacturing.
The policy is valid for five years, subject to its applicable provisions.
Capital Investment Subsidy: Support for Eligible Projects
One of the major highlights is the capital expenditure (CAPEX) subsidy for eligible ESDM units.
Depending on the applicable area category and other eligibility conditions, the policy provides capital investment support at specified rates, with benefits potentially reaching ₹200 crore per unit.
Eligible investment categories may include:
Buildings and infrastructure.
Plant and machinery.
Tools, moulds, and testing equipment.
IT hardware and software.
Renewable energy installations.
Environmental infrastructure.
Technology acquisition.
Eligible stamp duty and external development charges.
This support may help eligible businesses reduce their initial investment burden and improve project feasibility.
Operational Expenditure (OPEX) Incentives
Manufacturing businesses also need support after setting up their facilities. The policy includes operational incentives designed to help eligible units manage recurring business expenses.
The stated support rates vary by area category, from 50% to 80%, with a maximum annual benefit of ₹20 crore and support potentially available for up to 10 years, subject to the policy conditions.
Eligible expense categories may include:
Net SGST.
Electricity duty.
Lease rentals.
Quality certifications.
Patent-related expenses.
CGTMSE guarantee fees.
Credit rating expenses.
Export freight costs.
For businesses with substantial operating costs, these incentives may be an important factor when evaluating Haryana as an investment destination.
Special Benefits for Export-Oriented Businesses
The policy also seeks to strengthen Haryana’s contribution to India’s electronics exports.
Businesses may explore two export-promotion mechanisms:
Export Booster: Additional capital investment incentives linked to export performance may be available to eligible units meeting the prescribed export and turnover criteria.
Export Incentive: The policy outlines an incentive of 3% of annual export value for five years, subject to an overall cap linked to eligible capital expenditure.
These provisions could be particularly relevant for manufacturers planning to serve international markets and integrate into global electronics supply chains.
Incentives for Patents and Innovation
Innovation is essential for building a competitive electronics industry.
The policy provides for patent commercialisation incentives, with stated benefits of:
₹50 lakh for eligible domestic patents.
₹1 crore for eligible international patents.
Commercialisation requirements, per-unit limits, and other applicable conditions must be satisfied.
This provision may encourage businesses to invest in product development, proprietary technology, electronics design, and research-driven manufacturing.
Green Manufacturing and Renewable Energy Support
Sustainable manufacturing is becoming increasingly important for industrial businesses.
The Haryana ESDM Policy 2026 includes support for selected green manufacturing initiatives, such as:
Carbon credits: ₹100 per eligible carbon credit unit, subject to the applicable cap.
Renewable energy: Investment support of ₹50 lakh per MW, subject to project category and maximum limits.
Zero Liquid Discharge (ZLD): Reimbursement of 50% of eligible expenditure, within the prescribed limits.
Green building certification: Support linked to building costs for eligible LEED- or GRIHA-certified facilities.
These incentives may help qualifying businesses integrate sustainable practices into their manufacturing operations.
Employment Generation and Workforce Support
The policy also focuses on employment generation and the development of a skilled workforce.
Eligible units may receive employment-related incentives for up to 10 years, subject to the applicable requirements.
Special provisions may provide enhanced support for the employment of:
Women.
Employees belonging to Scheduled Castes.
Persons with disabilities.
Agniveers.
Ex-servicemen.
The policy also outlines support associated with recruitment through Haryana Kaushal Rozgar Nigam (HKRN), including specified EPF-related reimbursements for eligible employers and employees.
For businesses planning large manufacturing facilities, workforce planning and the availability of employment incentives can be important parts of project evaluation.
IMT Sohna: An Emerging Electronics Manufacturing Destination
Another significant development highlighted in the policy is the proposed 500-acre Electronics Manufacturing Cluster at IMT Sohna under the Electronics Manufacturing Clusters (EMC 2.0) Scheme.
The planned ecosystem is expected to support industrial development through facilities and infrastructure such as:
Industrial plots.
Plug-and-play factories.
Warehousing.
Employee housing.
Business centres.
Hospitals.
Incubation centres.
Common infrastructure facilities.
The cluster could create opportunities for manufacturers, component suppliers, logistics businesses, and supporting service providers, depending on the development and availability of facilities.
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