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Haryana Progressive MSME & Export Promotion Policy 2026: What It Offers and How to Claim It

Haryana's new MSME policy, notified on 29 July 2026, pays a capital subsidy of 15–30% up to ₹4 crore for thrust-sector manufacturers. Who qualifies, how the area categories work, the guidelines promised by 29 October 2026, and what to do now.

Subsidy Setu Editorial TeamUpdated 20 October 2026 5 min read
In this article
  1. Key facts
  2. How much capital subsidy can I get?
  3. Which area category is my unit in?
  4. Who qualifies?
  5. What counts as eligible capital expenditure?
  6. Rules that limit the claim
  7. What can I claim besides the capital subsidy?
  8. How and when do I apply?

The Haryana Progressive MSME & Export Promotion Policy 2026, notified on 29 July 2026 (Gazette 114-2026/Ext), is the State's main incentive framework for micro, small and medium manufacturers. Its headline incentive is a capital subsidy of 15–30% of eligible plant, machinery and building cost, up to ₹4 crore, depending on the unit's area category. It replaced the MSME Policy 2019 and HEEP 2020 and runs for five years from notification, or until a new policy or amendment, whichever is earlier. Operational guidelines were promised by 29 October 2026; none had been published when we checked on 20 October 2026.

Re-checked against the notified gazette on 19 October 2026; guideline status checked on 20 October 2026 on the Department of MSME, Haryana policy page.

This guide covers the capital investment subsidy and the rules that decide how much of it a unit can claim. We read the full clauses, not the summary tables: the tables leave out conditions that decide real money. Our scheme page has the full clause-by-clause reference.

Key facts

Item Haryana MSME Policy 2026
Notified 29 July 2026, Gazette (Extra.) No. 114-2026/Ext
Term Five years from notification, or until a new policy or amendment, if earlier
Capital subsidy 15% / 20% / 25% / 30% by area category (clause 4.1.1)
Ceiling ₹2 crore / ₹2.5 crore / ₹3.5 crore / ₹4 crore
Top-ups +5% (women, SC, Divyang, transgender, ex-servicemen, Agniveer owners); +10% (expanding exporters, foreign JVs)
Who Manufacturing MSMEs and exporters in nine thrust sectors
Overall cap 100% of Fixed Capital Investment per project (clause 3.6)
Guidelines Promised by 29 October 2026 (clause 3.7); none published on 20 October 2026

How much capital subsidy can I get?

Between 15% and 30% of eligible capital expenditure, capped at ₹2 crore to ₹4 crore, depending on where the unit is located. The Haryana Udyam Vikas Mission Capital Investment Subsidy (clause 4.1.1) applies to new, expansion and diversification projects:

Area category Subsidy Maximum
Core 15% ₹2.00 crore
Intermediate 20% ₹2.50 crore
Sub-Prime 25% ₹3.50 crore
Prime / Focus 30% ₹4.00 crore

Two top-ups apply on the base rate:

  • +5% for thrust-sector manufacturing MSMEs at least 51% owned by women, SC, Divyang, transgender, ex-servicemen or Agniveer entrepreneurs.
  • +10% for an existing exporter (at least 25% of turnover from exports) undertaking an expansion, or for an MSME forming a joint venture with a foreign investor.

The subsidy calculator shows the figure for your project cost.

Which area category is my unit in?

The category is set by the type of location (clause 1(m)), not by block or district:

  • Prime / Focus — inside a notified Industrial Investment Promotion Zone.
  • Sub-Prime — a conforming industrial zone in a Development Plan; a vacant, never-allotted plot in an HSIIDC estate or a licensed private industrial park; land given an industrial colony licence after the policy was notified; or land outside Controlled Area limits.
  • Intermediate — an already-allotted plot in an HSIIDC estate or a licensed private industrial park or colony, or land between municipal and Controlled Area limits.
  • Core — land within municipal limits.

The same project can be worth 15% or 30% depending on this single fact, so confirm it before you finalise a site. The Know your zone tool walks through the location types, and the district pages for Hisar, Rohtak, Panipat, Gurugram and Faridabad list local industrial areas.

Who qualifies?

Manufacturing MSMEs and exporters in the nine thrust sectors:

  1. Auto, auto components and EV
  2. Aerospace and defence
  3. General engineering, metal products and steel fabrication
  4. Electrical, electronics and scientific instruments
  5. Pharmaceuticals and medical devices
  6. Rubber and plastic, including toys and sports goods
  7. Footwear and leather
  8. Renewable energy, circular economy and green industry
  9. Textiles and apparel

Agri-based and food-processing units are covered by the separate Agri-Business and Food Processing Policy 2026. Sixteen industry categories on the policy's Restrictive List (Annexure I) are excluded from every incentive. Large, mega and ultra-mega units fall under the Make in Haryana Industrial Policy 2026 instead.

What counts as eligible capital expenditure?

It does not include land, captive renewable-energy plants or ZLD equipment (these have their own schemes under the policy), working capital, pre-operative expenses, capitalised interest, technical know-how and IP costs, or plant moved from another unit. Separate those lines in your project cost sheet from day one.

Rules that limit the claim

  • No double capital subsidy. A unit that takes this subsidy cannot also claim another capital subsidy for the same component, under this policy or another State policy.
  • 100% cap. Total incentives under the policy for the same project cannot exceed 100% of Fixed Capital Investment (clause 3.6).
  • Transition from HEEP 2020. A unit can opt for HEEP 2020 instead only if it had made substantial investment in land, building or plant and machinery before 29 July 2026, is eligible under HEEP 2020, and starts commercial production by 29 July 2028 (clause 3.5).

What can I claim besides the capital subsidy?

More than twenty other incentives — an interest subsidy, Net SGST reimbursement, stamp duty refund, an employment subsidy, and export, technology, quality and green incentives. Each is listed on our schemes directory with the clause it comes from. If you plan to combine them, read how scheme stacking works.

How and when do I apply?

The policy itself names no portal or claim form. Clause 3.7 promised operational guidelines within three months, by 29 October 2026, and says an application consistent with the policy is not barred because a scheme is not yet notified. Our scheme page names Invest Haryana (HEPC) as the expected route, but check the guidelines once they are published before you file. Meanwhile:

  1. Register on Udyam and keep your GSTIN active.
  2. Confirm your area category and thrust-sector fit in writing.
  3. Keep clean records of every item of capital expenditure — invoices, payment proofs, installation evidence and dates.
  4. Watch the Department of MSME, Haryana policy page and our government updates for the guidelines.

Check which Haryana schemes your unit matches, or ask our expert team about your project through our subsidy and DPR service.

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Schemes in this article

Eligibility, rates, documents and current status for each, on its scheme page.

Frequently asked questions

Is the Haryana MSME Policy 2026 in force?

Yes. It was notified on 29 July 2026 (Haryana Govt. Gazette Extraordinary No. 114-2026/Ext) and runs for five years from notification, or until a new policy or amendment, whichever is earlier. Clause 3.7 promised operational guidelines within three months, by 29 October 2026; none had been published when we checked on 20 October 2026. The same clause says an application consistent with the policy is not barred because a scheme's guidelines are not yet notified.

How much capital subsidy does the Haryana MSME Policy 2026 pay?

15% of eligible capital expenditure up to ₹2 crore in Core Areas, 20% up to ₹2.5 crore in Intermediate, 25% up to ₹3.5 crore in Sub-Prime and 30% up to ₹4 crore in Prime/Focus Areas (clause 4.1.1), with top-ups of 5% for units owned by women, SC, Divyang, transgender, ex-servicemen or Agniveer entrepreneurs and 10% for expanding exporters or foreign joint ventures.

Which area category is my unit in?

It depends on the type of location, not the district (clause 1(m)): a notified Industrial Investment Promotion Zone is Prime/Focus; a conforming industrial zone, a vacant never-allotted plot in an HSIIDC estate or licensed industrial park, a newly licensed industrial colony or land outside Controlled Area limits is Sub-Prime; an already-allotted plot in an HSIIDC estate or licensed park, or land between municipal and Controlled Area limits, is Intermediate; land within municipal limits is Core.

Can I take this subsidy and another capital subsidy for the same machinery?

No. A unit that takes the 2026 capital investment subsidy cannot claim another capital subsidy for the same component, under this policy or another State policy. Total incentives for a project are capped at 100% of Fixed Capital Investment (clause 3.6).

My unit started before July 2026. Can I still use HEEP 2020?

Possibly. Under the transitional clause 3.5 a unit can opt for HEEP 2020 if it had made substantial investment in land, building or plant and machinery before 29 July 2026, is eligible under HEEP 2020, and starts commercial production by 29 July 2028.

Sources

#haryana#capital-subsidy#msme-policy-2026#thrust-sectors
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This article is general information for Indian MSMEs, not advice on your specific case. Scheme terms, tax rates and due dates change; the sources above were checked when the article was written or last updated. Speak to a professional before acting on it.

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