Haryana Progressive MSME & Export Promotion Policy 2026
Notified on 29 July 2026 (Haryana Govt. Gazette Extraordinary No. 114-2026/Ext) in supersession of the Haryana MSME Policy 2019 and HEEP 2020, this is now the principal MSME incentive framework in Haryana, running five years from notification. Its headline incentive, the Haryana Udyam Vikas Mission Capital Investment Subsidy (clause 4.1.1), is for thrust-sector manufacturing MSMEs and exporters on new, expansion or diversification projects: 15% of eligible capital expenditure (max ₹2.00 Cr) in Core Areas, 20% (max ₹2.50 Cr) in Intermediate, 25% (max ₹3.50 Cr) in Sub-Prime and 30% (max ₹4.00 Cr) in Prime/Focus Areas. Women, SC, Divyang, Transgender, Ex-Servicemen and Agniveer-owned (at least 51% stake) manufacturing MSMEs in thrust sectors get an extra 5%, and existing exporting MSME units undertaking an expansion project, or an MSME unit forming a joint venture with a foreign investor, get an extra 10% (the policy separately defines an existing exporter as a manufacturing enterprise with at least 25% of turnover from exports). A unit availing this subsidy cannot also claim any capital subsidy or similar scheme — whether under this policy or another State policy — for the same component, and vice versa. The nine thrust sectors are: Auto & Auto Components and EV; Aerospace & Defence; General Engineering, Metal Products and Steel Fabrication; Electrical, Electronics and Scientific Instruments; Pharmaceuticals and Medical Devices; Rubber & Plastic including Toys and Sports; Footwear and Leather Products; Renewable Energy, Circular Economy & Green Industry; and Textile and Apparel. Agri-based and food processing units are also a thrust sector but are covered by a separate Agri-based, Food Processing & Allied policy. Eligible capital expenditure excludes land, captive renewable energy plants and ZLD equipment (claimable under other schemes of the policy), working capital, pre-operative expenses, capitalised interest, technical know-how and IP costs, and plant transferred from another unit. The area category depends on the type of location: Prime/Focus is a notified Industrial Investment Promotion Zone; Sub-Prime covers 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 covers allotted industrial plots and land between municipal and Controlled Area limits; Core is land within municipal limits. The policy also offers an Interest Subsidy, Net SGST reimbursement and more than twenty other incentives, each listed separately on this site. Sixteen industry categories in Annexure I (the Restrictive List) are excluded from all incentives. Total incentives under the policy for the same project are capped at 100% of Fixed Capital Investment (clause 3.6). The policy runs five years from notification or until a new policy or amendment, whichever is earlier; operational guidelines for its schemes are due within three months of notification, and an applicant is not barred from claiming meanwhile.
Key Benefits
- Capital Investment Subsidy (clause 4.1.1): 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.
- An extra 5% for thrust-sector manufacturing MSMEs at least 51% owned by women, SC, Divyang, transgender, ex-servicemen or Agniveer entrepreneurs; an extra 10% for existing exporters expanding, or MSMEs forming a joint venture with a foreign investor.
- More than twenty further incentives — interest subsidy, Net SGST reimbursement, stamp duty refund, employment subsidy, and export, technology, quality and green incentives — each listed as a separate scheme on this site.
- Total incentives for the same project are capped at 100% of Fixed Capital Investment (clause 3.6).
Who Can Apply
- The capital subsidy is for manufacturing MSMEs and exporters in the nine thrust sectors, on new, expansion or diversification projects.
- 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; footwear and leather; renewable energy, circular economy and green industry; textiles and apparel.
- Industries on the Annexure I Restrictive List are excluded from every incentive under the policy.
- The rate depends on the location type: Prime/Focus (notified Industrial Investment Promotion Zones), Sub-Prime, Intermediate or Core (within municipal limits).
Eligible Business Types
MSME Category Applicability
Eligible Industries
How to Apply
- Register the enterprise on Udyam and keep the GSTIN active.
- File the claim online on the Invest Haryana (HEPC) portal under this scheme, with the supporting records for the expenditure claimed.
- The policy required operational guidelines within three months of notification (by 29 October 2026). Check the portal for the claim form and cut-off dates; the policy says applicants are not barred from claiming meanwhile.
Apply at: Invest Haryana (HEPC) portal
Required Documents
- Udyam Registration
- GSTIN
- PAN/Aadhaar
- Project Report/DPR
- CA Certified Financials
- Machinery Quotations/Invoices
- Land/Lease Documents establishing the area category
- IEC (for export incentives)
- First sale bill/invoice evidencing Date of Commencement of Commercial Production
Stacking Compatibility
This scheme can be combined with the following for higher total benefits:
Common Rejection Reasons
- Activity is not one of the nine thrust sectors
- Unit falls in the Annexure I Restrictive List
- Same component also claimed under another capital subsidy of this policy (e.g. automation, solar, R&D) or another State policy
- Expansion with additional Fixed Capital Investment below 50% of existing FCI
- Land, captive renewable energy plant or ZLD equipment included in eligible capital expenditure
- Transferred plant and machinery counted towards eligible capital expenditure
- Working capital, pre-operative expenses or know-how costs claimed as eligible capital expenditure
- Commercial production commenced outside the policy period
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.