Why Haryana’s ESDM Policy 2026 Could Transform the Global Electronics Industry

Haryana’s Power Play: Revolutionizing Global Electronics with the New ESDM Policy 2026

The Government of Haryana has officially notified the Haryana Electronics System Design & Manufacturing (ESDM) Policy-2026, a landmark initiative designed to position the state as a premier destination for electronics manufacturing. Valid for a period of five years from its notification on May 27, 2026, this policy offers a robust framework of incentives aimed at fostering innovation, sustainability, and large-scale industrial growth.

Massive Financial Support for Industry Leaders

The policy breaks down financial assistance into two primary categories to ensure comprehensive coverage for eligible units:

CAPEX Support

Units can receive a reimbursement of 20% to 30% of their eligible capital expenditure, with a maximum ceiling of INR 200 crore per unit. This covers a wide range of investments including building construction, plant and machinery, IT hardware, and even the acquisition of technology from premier national or international institutes.

OPEX Support

To assist with daily operations, the state offers 50% to 80% reimbursement of eligible operational expenses for 10 years, capped at INR 20 crore per annum. This includes the reimbursement of Net SGST, electricity duty, annual lease rentals, and quality certification costs.

Global Ambitions: Export and Patent Incentives

To encourage Haryana-based units to compete on the world stage, the policy introduces specialized boosters.

Export Booster Incentives

Eligible units can choose between an enhancement to their CAPEX support based on export proportions or an Annual Export Turnover Linked Incentive equal to 3% of the annual export value.

Rewarding Innovation

Recognizing the value of intellectual property, the government provides INR 50 lakhs for each domestic patent and INR 1 crore for each international patent successfully granted and used commercially.

A Greener Future: Sustainability Incentives

Sustainability is a core pillar of the 2026 policy, offering rewards for eco-friendly practices.

Carbon Credits

Units can earn INR 100 per carbon credit unit generated within the state.

Renewable Energy

Financial support of INR 50 lakhs per MW is available for establishing captive renewable energy projects with a capacity of 100 kW or above.

Zero Liquid Discharge (ZLD)

The state will cover 50% of the cost for implementing ZLD measures, up to INR 5 crore for MSMEs and INR 10 crore for mega projects.

Building a Skilled Workforce

The policy focuses heavily on local employment and skill development.

Employment Generation Subsidy

Units are eligible for a subsidy for 10 years based on the proportion of Haryana local employees. Higher subsidies are provided for employing Women, SC, Divyang, Agniveers, and Ex-Servicemen.

Job Readiness Program

To bridge the skill gap, the state reimburses 50% of the stipend paid to interns, up to INR 15,000 per month, for a period of up to six months.

Specialized Support for Startups and Relocation

Haryana is making it easier than ever to start or move a business.

Startup Champions

The top 15 performing startups will receive free incubation space for up to three years. Additionally, startups get 75% reimbursement for prototyping costs, up to INR 15 lakh.

Relocation Grant

For units moving to Haryana from outside the state or country, a one-time relocation grant of 50% of the cost is provided, up to INR 10 crore for international relocations.

Infrastructure: The IMT Sohna Electronics Cluster

A centerpiece of this policy is the development of a world-class Electronics Manufacturing Cluster (EMC) at IMT Sohna. Spanning approximately 500 acres, this cluster offers seamless connectivity via the Kundli-Manesar-Palwal Expressway and features plug-and-play facilities, R&D centers, and dedicated testing infrastructure.

Conclusion

The Haryana ESDM Policy 2026 signals the state’s commitment to becoming a global leader in the Electronics System Design and Manufacturing sector. Covering everything from mobile devices and IT hardware to semiconductors and Internet of Things (IoT) systems, the policy creates a comprehensive ecosystem for investors, manufacturers, innovators, startups, and exporters.

With strong financial incentives, sustainability-focused benefits, workforce development programs, startup support, and world-class infrastructure at IMT Sohna, Haryana is laying the foundation for the next generation of electronics manufacturing. For investors and entrepreneurs, the message is clear: the future of electronics is being designed and manufactured in Haryana.

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