Haryana Progressive MSME & Export Promotion Policy 2026
Up to ₹4.00 Cr
Max Capital Investment Subsidy
₹55,000 Cr
Target MSME Investment (5 Years)
5,00,000
Target Local Employment Generation
2x Exports
State Export Doubling Target
Haryana Progressive MSME & Export Promotion Policy 2026 at a Glance
Notified by the Industries & Commerce Department vide Notification No. 02/04/2026-11B-II on 29 July 2026 in Gazette Extraordinary No. 114-2026/Ext., the 'Haryana Progressive MSME & Export Promotion Policy 2026' replaces the former Haryana MSME Policy 2019 and the MSME framework under HEEP 2020. The policy is effective for 5 years from notification.
Haryana currently hosts over 13.35 lakh Udyam-registered MSMEs (generating 84.5+ lakh jobs) and recorded USD 19.10 Billion in merchandise exports (ranking 8th in India). This comprehensive framework structures state assistance into 6 strategic pillars to drive self-reliance, green manufacturing, AI adoption, and global market penetration.
The policy was concurred in by the Finance Department (U.O. No. 01/26/2026-3FD-III/2026/6914 dated 09.06.2026) and approved by the Council of Ministers on 28.07.2026. All new scheme operational guidelines will be notified within 3 months.
Core Policy Targets — Clause 3.3
- •Attract ₹55,000 Crore of fresh investment into the MSME sector over 5 years.
- •Generate 5,00,000 new jobs across manufacturing, engineering, tech, and export services.
- •Double total merchandise and services exports from Haryana within 5 years.
- •Triple the adoption of green, circular, and renewable energy technologies among local MSMEs.
- •Facilitate international Joint Ventures (JVs), technology transfers, and G2G export partnerships.
Enterprise Thresholds & Area Classification
MSME Classification Thresholds (Union Budget 2025 Revision)
| Enterprise Type | Investment in Plant & Machinery / Equipment | Annual Turnover Ceiling |
|---|---|---|
| Micro Enterprise | Does not exceed ₹2.50 Crore | Does not exceed ₹10.00 Crore |
| Small Enterprise | Does not exceed ₹25.00 Crore | Does not exceed ₹100.00 Crore |
| Medium Enterprise | Does not exceed ₹125.00 Crore | Does not exceed ₹500.00 Crore |
Categorization of Areas (Clause 1.m)
| Category Zone | Area Description & Geographic Boundaries |
|---|---|
| Prime / Focus Areas | Boundary of Industrial Focus Areas / Investment Promotion Zones notified by Dept of Industries & Commerce. |
| Sub-Prime Areas | Conforming Industrial Zones in City Development Plans; vacant unallotted plots in HSIIDC IMTs/Estates or licensed Private Industrial Parks; areas outside Controlled Area limits. |
| Intermediate Areas | Allotted plots in HSIIDC IMTs/Estates or Private Parks; areas between municipal limits and Controlled Area limits. |
| Core Areas | Areas falling within municipal limits (ULB), excluding Prime, Sub-Prime, or Intermediate areas. |
Priority MSME Thrust Sectors (Clause 1.n)
- •Auto & Auto Components, Electric Vehicles (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 Goods)
- •Footwear and Leather Products
- •Renewable Energy, Circular Economy & Green Industry (Solar, Bio-Energy, Agri-waste to fuel)
- •Textile and Apparel
- •Agri-based, Food Processing & Allied Industry (supported via dedicated Food Processing Policy)
Capital Investment Subsidies, Interest Subventions & Credit Risk Sharing
A. Haryana Udyam Vikas Mission — Capital Investment Subsidy (Clause 4.1.1)
Provides capital investment subsidy for new, expansion, or diversification projects in Thrust Sectors:
| Area Zone | Capital Subsidy Percentage | Maximum Financial Ceiling |
|---|---|---|
| Core Areas | 15% of Eligible Capital Expenditure (ECE) | ₹2.00 Crore |
| Intermediate Areas | 20% of Eligible Capital Expenditure (ECE) | ₹2.50 Crore |
| Sub-Prime Areas | 25% of Eligible Capital Expenditure (ECE) | ₹3.50 Crore |
| Prime / Focus Areas | 30% of Eligible Capital Expenditure (ECE) | ₹4.00 Crore |
Top-up Boosters: 5% extra incentive for Women, SC, Divyang, Transgender, Ex-Servicemen, or Agniveer-owned units. 10% extra for existing exporting MSMEs undertaking expansion or international Joint Ventures (JVs).
B. Haryana Interest Subsidy Scheme (Clause 4.1.2)
| Area Zone | Interest Subsidy Rate | Annual Financial Ceiling |
|---|---|---|
| Core Areas | 5% per annum on term loan | ₹20.00 Lakh / year |
| Intermediate Areas | 6% per annum on term loan | ₹20.00 Lakh / year |
| Sub-Prime & Prime/Focus Areas | 7% per annum on term loan | ₹25.00 Lakh / year |
C. Haryana Net SGST Reimbursement Subsidy (Clause 4.1.3)
Reimbursement of Net SGST paid via cash ledger after exhausting all Input Tax Credit (ITC) for 7 years:
| Area Zone | Case I: B2C Sales > 50% in Haryana | Case II: B2C Sales < 50% in Haryana |
|---|---|---|
| Core Areas | 30% of Net SGST for 7 years | 20% of Net SGST for 7 years |
| Intermediate Areas | 50% of Net SGST for 7 years | 40% of Net SGST for 7 years |
| Sub-Prime Areas | 60% of Net SGST for 7 years | 50% of Net SGST for 7 years |
| Prime / Focus Areas | 70% of Net SGST for 7 years | 60% of Net SGST for 7 years |
D. Insurance, Export Credit & Venture Capital Schemes
- •Haryana MSE Insurance Scheme: 33% reimbursement of plant & machinery insurance premium, up to ₹5.00 Lakh/year for 3 years.
- •Export Credit Insurance Premium Support: 40% reimbursement of ECGC insurance premium paid by MSME exporters, up to ₹5.00 Lakh/year for 5 years.
- •Haryana Interest Subvention on Export Credit: 3% interest subvention on pre-shipment and post-shipment export credit, up to ₹10.00 Lakh/year for 3 years (1% extra for first-time / inclusive exporters).
- •Sectoral Credit Guarantee Fund: State-level collateral-free credit guarantee for Technical Textiles, EV, Renewables, Food Processing, Precision Engineering, and Pharma.
- •Haryana Venture Capital Fund Limited (HVCFL): Dedicated early/growth-stage equity VC fund under Directorate of MSME with an initial corpus of ₹200 Crore.
Cluster Plug & Play, CFCs, Stamp Duty & Export Infrastructure
A. Cluster Plug & Play & CFC Infrastructure Schemes
| Scheme Name | Eligibility & Land Criteria | Financial Assistance & Ceiling |
|---|---|---|
| Cluster Plug & Play (5+ Acres) | Minimum 5 acres (min 10 sheds) | 50% grant-in-aid up to ₹5.00 Crore |
| Cluster Plug & Play (10+ Acres) | Minimum 10 acres (min 20 sheds) | 40% grant-in-aid up to ₹10.00 Crore |
| Plug & Play (5 to 10 Acres) | Proportionate per acre step | ₹5.00 Cr + ₹1.00 Cr per additional acre |
| MSE Common Facility Centre (CFC) | SPV of at least 10 MSE units | 80% grant-in-aid up to ₹5.00 Crore |
| MSE Common Facility Centre (CFC) | SPV of at least 15 MSE units | 70% grant-in-aid up to ₹10.00 Crore |
B. Stamp Duty Refund & Export Infrastructure Support
| Scheme / Head | Financial Support Details & Area Rates |
|---|---|
| Stamp Duty Refund Scheme | 30% (Core), 60% (Intermediate), 75% (Sub-Prime), 100% (Prime/Focus) refund upon commercial ops within 5 yrs. |
| Freight Subsidy for Exporters | 1% FOB value or actual freight to seaport/airport/border, up to ₹10 Lakh (Core), ₹15 Lakh (Inter/Sub-Prime), ₹30 Lakh (Prime/Focus) per year for ZED MSEs. |
| PADMA Export Parks Scheme | Additional ₹10.00 Crore grant for common R&D/testing facilities in PADMA parks with ≥70% exporting units. |
| Mukhya Mantri Pratham Niryatak Protsahan | 33% up to ₹20.00 Lakh/year for 3 years for 1st-time manufacturing MSME exporters (documentation, samples, testing, buyer outreach). |
| MSME Right to Business Act | Statutory framework for time-bound approvals, self-declarations, and deemed clearances. |
| Haryana Niryat Centre | One-stop expert-managed export facilitation center for documentation, logistics, and buyer connects. |
Automation, R&D Labs, Testing Equipment, AI Adoption & Quality Certifications
Fiscal Subsidies for Industrial Modernization (Clause 4.3)
| Scheme Name | Incentive Percentage & Terms | Maximum Financial Ceiling |
|---|---|---|
| Haryana MSME Automation Scheme | 25% of automation project cost (robotics, IoT, Industry 4.0) | ₹50.00 Lakh (Core/Inter) / ₹1.00 Cr (Sub-Prime/Prime) |
| Haryana R&D Centre Scheme | 50% of project cost (building capped at 25% of cost; DSIR/CSIR recognized) | Up to ₹5.00 Crore |
| Testing Equipment Subsidy | 50% subsidy for raw material & finished product testing equipment | Up to ₹25.00 Lakh / year (max 2 times) |
| Adoption of AI Solutions | 33% reimbursement for standalone / subscription AI software | Up to ₹10.00 Lakh (once in policy) |
| Setting up of AI Lab | 33% reimbursement for setting up in-house AI research lab | Up to ₹15.00 Lakh (once in policy) |
| Quality Certification Subsidy | 50% reimbursement for ISO, BIS, HACCP, WHO-GMP, ZED, Hallmark | Up to ₹10.00 Lakh / year for 3 years |
| International Export Certification | 60% reimbursement for mandatory country-specific export certifications | Up to ₹20.00 Lakh / year for 2 years |
The State will also establish 2 Centres of Excellence (CoEs) across Aerospace & Defence, MSME Greening, Packaging & Design, or Technical Textiles, alongside institutional tie-ups with IITs and CSIR labs.
Cross-Border E-Commerce, Trade Fairs, Udaan Dwaar & Reverse Buyer Seller Meets
Market Development & Trade Expansion Incentives (Clause 4.4)
| Incentive Head | Coverage & Assistance Percentage | Financial Ceiling |
|---|---|---|
| E-Commerce for Exporters | 75% of registration, shipping, and subscription fees for export e-commerce | Up to ₹2.00 Lakh / year for 5 years |
| E-Commerce for Domestic MSEs | 75% of fees charged by domestic e-commerce platforms | Up to ₹1.00 Lakh / year for 5 years |
| Market Development Assistance | 25% participation fee + travel & boarding (2 persons) for trade fairs | Domestic: ₹3.00 L fee + ₹1.50 L travel | Intl: ₹5.00 L fee + ₹2.50 L travel |
- •Udaan Dwaar: Virtual global MSME growth hub portal for joint ventures, export matchmaking, and investor collaborations.
- •Reverse Buyer-Seller Meets (RBSMs): State-organized B2B meets bringing international buyers directly to Haryana industrial clusters.
- •GI Product Anchoring: Promoting Geographical Indication (GI) products as heritage anchors for 'Brand Haryana'.
- •State-Led International Roadshows: Global export roadshows organized in partnership with DPIIT and Indian Missions abroad.
Energy Efficiency, Circular Economy, Solar & Green Investment Fund
Green Manufacturing Interventions (Clause 4.5)
Promotes decarbonisation, energy audits, water reuse, and solar rooftop integration across MSME clusters:
- •Promoting Energy Efficiency: Audit reimbursements and subventions for installing energy-efficient machinery.
- •Circular Economy & Waste Reuse: Grants for agricultural waste-to-energy and industrial dross recovery units.
- •Support for Solar Rooftops: Net-metered solar subsidies for rooftop installations on MSME plants.
- •Environmental Compliance Assistance: Subsidies for setting up Effluent Treatment Plants (ETP) and Zero Liquid Discharge (ZLD) systems.
- •Haryana Green Investment Fund: Targeted financial pool to de-risk sustainable and low-carbon MSME transitions.
Local Employment Generation Subsidies & HKRN EPF Support
A. Local Employment Generation Subsidy Scheme (Clause 4.6.1)
Granted for 10 years from DoCP for Haryana local employees (verified via Parivar Pehchan Patra - PPP):
| Haryana Local Employee Ratio | General Category Employee Subsidy Rate | Women / SC / Divyang / Agniveer / Ex-Servicemen Rate |
|---|---|---|
| < 15% Local Workforce | Not Applicable | 120% average gross monthly salary (Cap: ₹1.00 Lakh/yr/emp) |
| ≥ 15% Local Workforce | 100% + {20% * (% Local - 15%)} of gross salary (Cap: ₹1.00 Lakh/yr/emp) | 120% + {20% * (% Local - 15%)} of gross salary (Cap: ₹1.20 Lakh/yr/emp) |
Guaranteed Floor: If an eligible local employee's average gross monthly salary is below ₹48,000, a minimum annual employment subsidy of ₹48,000 per employee is guaranteed.
B. Booster for Recruitment via Haryana Kaushal Rozgar Nigam (HKRN)
- •Employer Statutory EPF Reimbursement: 100% reimbursement of employer EPF contribution for 5 years for hires via HKRN (capped at 12% basic+DA or ₹25,000/yr/employee).
- •Employee Statutory EPF Reimbursement: 100% employee EPF contribution reimbursed directly via Direct Benefit Transfer (DBT) for 5 years (capped at ₹25,000/yr/employee).
Ineligible & Highly Polluting Industrial Categories
| S. No. | Restricted Industrial Activity |
|---|---|
| 1 | Industrial units involving trade effluents and air emissions operating within residential areas |
| 2 | Cigars, cigarettes, and tobacco product manufacturing |
| 3 | Soft drinks, aerated water, and packaged drinking water units located in notified 'Dark Zones' |
| 4 | Stone crushers and stone washeries |
| 5 | Lime kilns and Brick kilns (except refractory bricks, fly ash bricks, and cement blocks) |
| 6 | Copper/Zinc smelters and zinc metal recovery from zinc ash/dross |
| 7 | Ethyl Alcohol / Distillery / Brewery (except wine/liquor/brandy made from 100% local fruits & barley) |
| 8 | Sulphuric acid, thinners, varnishes, and electroplating units |
| 9 | Dyes and dye intermediates (except units covered under Zero Liquid Discharge - ZLD) |
| 10 | Yarn and cloth dyeing industry (except units covered under Zero Liquid Discharge - ZLD) |
| 11 | Refining of used oil |
| 12 | Tanneries |
| 13 | Poultry farming (excluding Hatcheries) |
| 14 | Firecrackers and explosive manufacturing |
| 15 | Defaulters of State Government or State Government undertakings |
| 16 | Any industry specifically declared restricted by the State Government from time to time |
Government Notifications, Statutory Citations & Directorate Details
The Haryana Progressive MSME & Export Promotion Policy 2026 is published under the official authority of the Governor of Haryana:
| Reference / Citation Head | Official Gazette & Government Record Details |
|---|---|
| Primary Policy Notification | No. 02/04/2026-11B-II dated 29th July, 2026; Industries & Commerce Department, Government of Haryana. |
| Official Gazette Publication | Haryana Govt. Gazette (Extraordinary), No. 114-2026/Ext., Chandigarh, Wednesday, July 29, 2026 (Sravana 7, 1948 Saka). |
| Finance Department Concurrence | U.O. No. 01/26/2026-3FD-III/2026/6914 dated 09.06.2026. |
| Cabinet Approval | Approved by the Council of Ministers in its meeting held on 28th July, 2026. |
| Notification Signatory | Amit Kumar Agrawal, Commissioner & Secretary to Government Haryana, Industries & Commerce Department. |
| Administrative Directorate | Directorate of MSME, Government of Haryana, Plot No. C-3, HSVP Complex, Sector 6, Panchkula, Haryana-134109. |
| Directorate Contact | Phone: 0172-2580707 | Email: info-msme@hry.gov.in |
| Superseded Frameworks | Supersedes Haryana MSME Policy 2019 and MSME provisions of HEEP 2020. |
| Transitional Investment Protection | Clause 3.5 protects units taking effective steps prior to notification if DoCP falls within 2 years under HEEP 2020 rules. |
| Local Employee Verification | Parivar Pehchan Patra (PPP) portal, Government of Haryana. |
| Competent Interpretative Authority | Administrative Secretary, Department of Industries & Commerce, Haryana (Clause 3.8). |
All operational guidelines will be notified within 3 months. Investors consistent with policy provisions can apply directly on the online single-window portal.