Haryana has taken a major step towards positioning itself as a globally competitive hub for pharmaceutical and medical device manufacturing with the launch of the Haryana Pharmaceutical and Medical Devices Manufacturing Policy 2026.
Notified on May 27 and valid for five years, the policy has been formulated by the Department of Industries and Commerce to strengthen the state’s pharmaceutical and medical devices ecosystem. It aims to encourage local manufacturing, promote research and development, boost exports, and improve access to affordable medicines.
The state government expects the policy to attract investments worth at least INR 10,000 crore over the next five years and generate around 20,000 direct and indirect employment opportunities across the pharmaceutical and medical devices sectors.
CAPEX and OPEX Support
A key attraction of the policy is its generous Capital Expenditure (CAPEX) Support Incentive. Eligible manufacturing units setting up new facilities or expanding existing operations can receive reimbursement of 20 to 30 per cent of their eligible capital expenditure, depending on the project’s location. The incentive is capped at INR 200 crore per unit.
Eligible capital investments include expenditure on factory buildings, plant and machinery, IT hardware and digital infrastructure, renewable energy projects, technology acquisition, and other approved fixed assets.
The policy also offers Operational Expenditure (OPEX) Support Incentives. Eligible units can receive reimbursement of 50 to 80 per cent of approved operational expenses for up to 10 years from the commencement of production, subject to a maximum annual benefit of INR 20 crore per unit. Eligible expenses include net SGST, electricity duty, lease rentals, quality certification costs, clinical trials patent-related costs, and other approved operational costs.
Exports Linked Incentives
The policy also seeks to strengthen Haryana’s export capabilities. Manufacturing units can choose between a CAPEX Support Linked Export Booster Incentive or an Annual Export Turnover Linked Incentive.
The Export Booster Incentive will be determined based on the proportion of exports to total sales during the first three years from the date of commencement of commercial production.
The incentive percentage will be calculated using the following formula:
Export Booster Incentive (%) = 5% × [(Export share as a percentage of total sales) − 10%]
Eligible manufacturing units can avail an Annual Export Turnover Linked Incentive equal to 3 per cent of their annual export value. The incentive will be available for five years from the date of commencement of commercial production or operations.
Greening Incentives
Sustainability is another important pillar of the policy. Manufacturing units generating carbon credits in Haryana will be eligible for an incentive of INR 100 per carbon credit unit. The government will also provide support for captive renewable energy projects of 100 kW or more, offering incentives of INR 50 lakh per MW.
To encourage responsible wastewater management, the policy provides financial assistance for establishing Zero Liquid Discharge (ZLD) systems. MSMEs can receive reimbursement of up to 50 per cent of project costs, capped at INR 5 crore, while mega projects can avail support of up to INR 10 crore.
Capacity Building Subsidy
Employment generation is a major focus area, with eligible units entitled to subsidies linked to the proportion of Haryana local employees in the workforce. The incentive will be available for up to 10 years.
To address skill gaps and strengthen industry-academia collaboration, the state will reimburse 50 per cent of stipends paid to interns and apprentices, up to a maximum of INR 15,000 per month per trainee.
The policy also offers significant support to startups operating in the pharmaceutical and medical devices sector. Startups can avail reimbursement of 75 per cent of prototype development costs, up to INR 15 lakh annually.
In addition, developers establishing private pharmaceutical and medical device parks will be eligible for capital subsidies ranging from 75 to 85 per cent for developing common infrastructure such as roads, power backup systems, water treatment plant, and utility tunnels.
A model of innovation
By leveraging Haryana’s existing industrial strengthsand creating a strong ecosystem for pharmaceutical and medical device manufacturing, the policy seeks to strengthen India’s self-reliance in healthcare. The initiative aims to position Haryana as a model of innovation, growth and public-health excellence.
The global pharmaceutical industry is currently valued at approximately USD 1.6 trillion and is projected to reach USD 2.6 trillion by 2030. India accounts for around 3 per cent of the global market, with the sector valued at USD 49.7 billion in 2023. The domestic pharmaceutical market is expected to expand significantly, reaching an estimated USD 130 billion by the end of the decade.
The global medical devices market is valued at nearly USD 930 billion. India’s medical devices sector, worth USD 15.35 billion in 2023, ranks fourth in Asia. However, the country continues to depend on imports for nearly 80 per cent of its medical device requirements, particularly for high-end diagnostic equipment, imaging systems, and advanced implants.
To address this gap, the National Medical Devices Policy 2023 aims to expand India’s medical devices market to USD 50 billion by 2030 and increase the country’s share of the global market from less than 2 per cent currently to more than 10 per cent by 2048.
Access the full policy here.
