The Government of Haryana is finalising its Industrial Policy 2026 through a series of high-level consultations with global and domestic investors, with a dual focus on revitalising traditional manufacturing clusters and expanding into high-technology sectors. The policy positions textiles, integrated industrial townships (IMTs), and strategic manufacturing investments as its core pillars.
A central component of the policy is the targeted strengthening of textile hubs such as Panipat, Sonipat, and Faridabad, where district-level constraints in infrastructure, logistics, and competitiveness are being mapped for tailored interventions. This reflects a shift from generic incentives toward cluster-specific industrial policy design.
In parallel, the state plans to expand its industrial base through the development of 10 new Industrial Model Townships (IMTs), including specialised zones for foreign investors such as Japanese firms. These townships are intended to support plug-and-play manufacturing ecosystems linked to export markets.
The policy is also being aligned with an active investment pipeline, with proposals including a ₹3,000 crore aerospace and defence project, a ₹1,000 crore automotive components facility, and expansion in electronics, solar, and data infrastructure. The government has directed HSIIDC to fast-track land allocation and coordination, linking policy design directly with implementation.
A key strategic orientation of the framework is import substitution, encouraging domestic production in sectors currently reliant on imports, alongside a proposed export subsidy structure to support MSMEs entering global markets. Together, these measures position Haryana’s industrial policy as a cluster-driven, investment-linked model aimed at strengthening its role in national manufacturing and exports.
Key Strategic Pillars of the 2026 Policy
Infrastructure Expansion: Development of 10 new IMTs; land acquisition is already underway for Ambala and Naraingarh.
Textile Revitalization: Tailored support for Panipat, Sonipat, and Faridabad to boost their status as leading national exporters.
Investment "Fast-Track":
Aerospace India: Planned ₹3,000 crore investment in military defense systems.
Continental: ₹1,000 crore for a modern electronic brake plant in Manesar/Dharuhera.
Panasonic: Expansion of Jhajjar plant from 5 lakh to 20 lakh AC units (₹200 crore investment).
Air Water India: ₹200 crore for medical oxygen and water plants in Rohtak/Bawal.
Export Promotion: Introduction of a slab-based export subsidy (starting from 5%) to encourage MSMEs to enter global markets.
Green & Digital Shift: Focus on Electric Vehicles (EVs) in municipal bodies, Data Centers (Welspun), and Solar industries (Gautam Solar by 2028).
Connectivity Boost: Approval of a six-lane road from Wazirpur (Gurugram) to Jhajjar and the Chandu Bypass to improve port and airport access.
What is "Import Substitution" in Industrial Policy?
Import Substitution is a strategy that encourages the domestic production of goods that a country currently buys from abroad. Instead of spending foreign currency to import electronics, machinery, or textiles, the Haryana Industrial Policy 2026 provides incentives for companies to build those products within the state.
This "Make in Haryana" approach serves two purposes: it makes the local supply chain more resilient to global shocks and creates high-quality manufacturing jobs for the local youth, turning a trade deficit into domestic industrial strength.
Policy Relevance
Driving "Viksit Bharat 2047": Haryana’s vision document aligns with the national goal, positioning the state as a high-growth engine through its 10 new IMTs.
Defence Indigenisation: The potential ₹3,000 crore aerospace investment supports India’s goal of becoming a global defence manufacturing hub and reduces reliance on imported military tech.
Global Supply Chain Role: By adopting the OECD Frascati Manual standards for R&D and focusing on "superior quality," Haryana is helping Indian products compete in highly regulated Western and Japanese markets.
Ease of Doing Business (EoDB): Streamlining paperwork through a single-window system and direct CM-level consultations reduces the "compliance burden" for global giants like Panasonic and Continental.
Rural-Urban Synergy: By expanding road infrastructure (like the Jhajjar six-laning) and developing IMTs in Ambala, the policy ensures that industrial wealth is distributed beyond the traditional Gurugram-Faridabad belt.
Relevant Question for Policy Stakeholders: With Haryana planning 10 new IMTs and a dedicated Japanese zone, how can HSIIDC design plug-and-play infrastructure that enables SMEs to begin operations within 90 days of land allotment and match global speed-to-market benchmarks?
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