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, and what to do now.
In this article
On 29 July 2026 Haryana notified the Progressive MSME & Export Promotion Policy 2026 (Haryana Govt. Gazette Extraordinary No. 114-2026/Ext). It replaces both the Haryana MSME Policy 2019 and the Haryana Enterprises & Employment Policy (HEEP) 2020, and is now the main incentive framework for small manufacturers in the State. It runs for five years from notification.
This guide covers the headline incentive — 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.
The capital investment subsidy
The Haryana Udyam Vikas Mission Capital Investment Subsidy (clause 4.1.1) pays a share of the eligible capital expenditure on a new, expansion or diversification project. The rate depends on where the unit is located:
| 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 top of 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.
Which area category are you in?
This is where most people get it wrong. The category is set by the type of location (clause 1(m)), not by block or district:
- Prime / Focus — a notified Industrial Investment Promotion Zone.
- Sub-Prime — conforming industrial zones, vacant HSIIDC or licensed industrial-park plots, industrial colonies licensed after the policy was notified, and land outside Controlled Area limits.
- Intermediate — allotted industrial plots, and 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.
Who qualifies
The capital subsidy is for manufacturing MSMEs and exporters in the nine thrust sectors:
- Auto, auto components and EV
- Aerospace and defence
- General engineering, metal products and steel fabrication
- Electrical, electronics and scientific instruments
- Pharmaceuticals and medical devices
- Rubber and plastic, including toys and sports goods
- Footwear and leather
- Renewable energy, circular economy and green industry
- Textiles and apparel
Agri-based and food-processing units are also a thrust sector, but they are covered by a separate Haryana policy. Sixteen industry categories on the policy's Restrictive List (Annexure I) are excluded from every incentive.
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. Build your project cost sheet with those lines separated from day one — it saves an argument at claim stage.
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, whether 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. Units that took effective steps before 29 July 2026 can opt for HEEP 2020 instead, provided commercial production starts by 29 July 2028 (clause 3.5).
Beyond the capital subsidy
The policy has 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 as its own entry on our schemes directory, with the clause it comes from.
What to do now
The policy required operational guidelines within three months, so by 29 October 2026. Until the claim forms are on the portal:
- Register on Udyam and keep your GSTIN active.
- Confirm your area category and thrust-sector fit in writing.
- Keep clean records of every item of capital expenditure — invoices, payment proofs, installation evidence, and the dates.
- File on the Invest Haryana (HEPC) portal once the scheme form is live. The policy says applicants are not barred from claiming meanwhile.
Reviewed against the notified gazette text in September 2026. Check which Haryana schemes your unit matches — it takes two minutes.
Frequently asked questions
Is the Haryana MSME Policy 2026 already in force?
Yes. It was notified on 29 July 2026 (Haryana Govt. Gazette Extraordinary No. 114-2026/Ext) and runs for five years from that date. Operational guidelines for each scheme were due within three months, by 29 October 2026, and the policy says applicants are not barred from claiming in the meantime.
Which area category is my unit in?
It depends on the type of location, not the district: a notified Industrial Investment Promotion Zone is Prime/Focus (30%); conforming industrial zones, HSIIDC and licensed industrial-park plots, colonies licensed after notification, and land outside Controlled Area limits are Sub-Prime (25%); allotted industrial plots and land between municipal and Controlled Area limits are Intermediate (20%); land within municipal limits is Core (15%).
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 any other capital subsidy or similar scheme, under this policy or another State policy, for the same component — and vice versa. Total incentives for a project are capped at 100% of Fixed Capital Investment.
My unit started before July 2026. Can I still use the old HEEP 2020?
Possibly. The transitional clause (3.5) lets units that took effective steps before 29 July 2026 opt for HEEP 2020, provided commercial production starts by 29 July 2028.
Sources
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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