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Haryana unveils ambitious pharma policy 2026 targeting Rs. 10,000 crore investment and 20,000 jobs
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Peethaambaran Kunnathoor, Chennai
June 11 , 2026
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The Government of Haryana has officially unveiled its highly anticipated Haryana Pharmaceutical and Medical Devices Manufacturing Policy 2026 on June 1, setting an ambitious target to transform the state into a globally competitive healthcare manufacturing hub.
Formulated by the Department of Industries and Commerce, the new policy outlines a comprehensive roadmap aimed at attracting capital investments of at least Rs. 10,000 crore into the state over the next five years. Beyond driving industrial expansion, the state government estimates that the promotional framework will generate a minimum of 20,000 direct and indirect employment opportunities across the pharmaceutical and medical equipment sectors.
The cornerstone of the policy is a massive financial incentive package structured around capital expenditure support and operational subventions. New and expanding manufacturing units stand to receive capital subsidies ranging from 20 per cent to 30 per cent of their fixed capital investments, capped at a substantial Rs. 200 crore per unit. Additionally, the state has introduced an operational expenditure subsidy of up to Rs. 20 crore per annum for a decade to reimburse local taxes, electricity duties, and clinical trial expenses. In a bid to seamlessly integrate with central schemes, the policy offers manufacturers an optional 50 per cent top-up incentive on disbursements received under the central government’s active production linked incentive schemes in lieu of standard state benefits.
A major highlight of the policy is the introduction of radical regulatory reforms designed to eliminate bureaucratic red tape and establish a hassle-free environment for investors. In an unprecedented move to fast-track regional clearances, the state administration has guaranteed that manufacturing and marketing approvals for drug formulations will be accorded within seven working days, provided the products have already been approved by neighbouring state licensing authorities or central expert panels. Further, pharmaceutical and medical device manufacturing units will be designated as essential services under the Haryana Essential Services Maintenance Act, insulating production lines from unexpected public disruptions.
The framework also addresses long-standing infrastructural and structural demands by introducing path-breaking relaxations in state building regulations. For the pharmaceutical sector, the state has completely amended the Haryana Building Code to permit unrestricted Floor Area Ratio, unrestricted ground coverage, and unrestricted maximum height for manufacturing facilities, subject only to basic fire and structural safety compliances. To resolve commercial grievances regarding the slow disbursement of state subsidies, the policy mandates an upfront release of 50 per cent of eligible incentive claims within seven working days of preliminary scrutiny, backed by an eight per cent per annum interest penalty payable by the department in case of delays.
To aggressively pull manufacturing activities away from traditional pharmaceutical corridors, the state has introduced heavy financial cushions to facilitate industrial migration. Haryana is offering a unique, one-time relocation grant covering 50 per cent of the shifting costs for units transferring operations from other territories. This relocation subsidy is capped at Rs. 5 crore for units migrating from within India and goes up to Rs. 10 crore for companies relocating manufacturing facilities from overseas locations.
Reacting to the policy layout, RL Sharma, president of the Haryana Pharmaceutical Manufacturers Association (HPMA), stated that the document represents a progressive step that addresses several critical pain points of the local industry. Sharma pointed out that the emphasis on fast-tracked formulation approvals and the provision of central top-up incentives will significantly enhance ease of doing business for small and medium enterprises. However, Sharma emphasized that the ultimate success of these ambitious targets will hinge entirely on the ground-level implementation of the promised timelines and the efficient functioning of the single-window clearance mechanisms.
The pharma policy also embeds substantial long-term investments into industrial infrastructure, local research capabilities, and human resource development. The state will provide financial assistance of up to Rs. 45 crore to developers establishing private pharmaceutical clusters and parks spanning 10 to 25 acres. Research and development facilities are eligible for capital grants of up to Rs. 50 crore alongside operational subsidies of Rs. 2 crore per year. To build a future-ready workforce, the state will fund up to 50 per cent of stipends for local apprentices while providing an annual employment generation subsidy of up to Rs. 1.2 lakh per local employee to manufacturing units hiring regional hands.
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