Haryana Pharmaceutical and Medical Devices Manufacturing Policy

Haryana has emerged as one of India’s most proactive states in building a robust healthcare manufacturing ecosystem. Through two landmark policy frameworks — the Haryana Pharmaceutical Policy 2019 and the Haryana Medical Devices Manufacturing Policy 2024 — the state government has laid out a strategic roadmap to attract investment, generate employment, and position Haryana as a global hub for pharma and medical device production.

These policies align closely with national initiatives such as Make in India, Atmanirbhar Bharat, and the Production-Linked Incentive (PLI) schemes promoted by the Central Government, and reflect the broader goal of reducing India’s dependence on pharmaceutical imports.

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Part I: Haryana Pharmaceutical Policy 2019

Background and Vision

Notified on March 6, 2019, by the Department of Industries & Commerce, Government of Haryana, the Haryana Pharmaceutical Policy 2019 was the state’s first dedicated policy framework for the pharmaceutical sector. It recognized the growing demand for quality medicines and bulk drugs, and the need to channel investment into this sector systematically.

The policy targets the production of generic drugs, Active Pharmaceutical Ingredients (APIs), formulations, and medical devices, leveraging Haryana’s strategic geographic location, well-developed industrial infrastructure, and proximity to the National Capital Region (NCR).

Key Objectives

1. Attract INR 2,000 Crore in pharmaceutical sector investments
2. Generate approximately 25,000 new jobs
3. Establish a state-of-the-art Pharma Park in Karnal
4. Build a robust industry-academic and R&D ecosystem
5. Solidify Haryana’s position as a leading pharmaceutical manufacturing destination in India

Eligible Entities and Sectors

The policy covers both new and existing pharmaceutical manufacturing units across the following segments:

1. Active Pharmaceutical Ingredients (APIs)
2. Drug formulations
3. Bulk drugs
4. Medical devices
5. Herbal and Ayurvedic formulations

Eligible business structures include Proprietorships, Partnerships, Private Limited Companies, Public Limited Companies, LLPs, and Co-operative Societies.

Fiscal Incentives

Capital Investment Subsidy

The flagship incentive under the policy is a capital subsidy of up to 25% on the cost of plant, machinery, and technical civil works, capped at INR 50 lakhs, specifically for new units set up in the Pharma Park at Karnal.

Interest Subsidy

Units are eligible for interest subsidy on term loans, reducing the burden of initial capital expenditure.

Employment Generation Subsidy

To encourage job creation, the policy provides financial support for employment of local workers, promoting hiring of Haryana domicile residents.

Special Packages for Pharma Park Units

Units located within the Karnal Pharma Park are eligible for enhanced incentive packages, including larger capital subsidies, relaxed land norms, and priority utility connections.

Geographic Classification (Block System)

The policy follows a block categorization system (A, B, C, D), where:

• Block A — Most developed (least incentives)
• Block D — Least developed (highest incentives)

This structure ensures balanced industrial development across the state’s regions.

Application and Compliance

Applications are submitted electronically via the Haryana Industries & Commerce Department portal within three months from the commencement of commercial production. Documentation includes:

1. Incorporation/registration certificates
2. Investment and project details
3. Environmental compliance certificates
4. Labour law compliance

Penalties: Misrepresentation leads to repayment of subsidies at 12% compound interest, legal action, and disqualification from future incentives.

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Part II: Haryana Medical Devices Manufacturing Policy 2024

Background and Strategic Vision

The Draft Haryana Medical Devices Manufacturing Policy 2024, released by the Department of Industries & Commerce, represents a major leap in the state’s industrial ambition. India’s medical device sector is a critical pillar of healthcare infrastructure, and Haryana — with its strong industrial base — is well-positioned to become a national and global leader.

The policy acknowledges that the medical devices sector not only improves patient care and healthcare quality, but also drives employment, R&D investment, and export earnings. The state government has framed this policy to harness global market competitiveness while reducing India’s heavy reliance on imported medical equipment.

Core Vision and Objectives

“To transform Haryana as a global leading hub for the manufacturing of medical devices by developing a thriving ecosystem.”

Specific targets include:

1. Attract INR 3,000 Crore in medical device manufacturing investments
2. Create 20,000 new jobs in the sector
3. Establish world-class Medical Device Parks
4. Promote R&D collaborations between industry and academia
5. Boost exports of medical devices from Haryana
6. Bridge technological gaps through innovation

Eligibility Criteria

The policy applies to any unit manufacturing medical devices as covered under the Medical Device Rules 2017 (issued under the Drugs and Cosmetics Act, 1940) by the Ministry of Health & Family Welfare, Government of India.

Eligible categories include:

1. New units commencing commercial production after policy notification
2. Existing units undertaking expansion or diversification in blocks A, B, C, or D with valid Change of Land Use (CLU) permission under commercial/industrial category, or in Government-approved Industrial Estates/IMTs (Industrial Model Townships)

Important: Units that have already availed incentives under HEEP 2020 (Haryana Enterprises and Employment Policy) or any other state policy cannot claim the same benefit again under this policy.

Policy Validity

The policy is valid for a period of 5 years from the date of notification, or until a new policy/amendment is introduced, whichever is earlier.

Quantum of Fiscal Incentives

For All Units (MSME, Large & Mega)

1. Employment Generation Subsidy

1. INR 48,000 per year per employee for direct employees on payroll
2. Applicable only for employees with valid ESI/PF numbers and monthly remuneration up to INR 40,000
3. Available for a period of 10 years
4. Eligible employees must hold a Haryana Bonafide Resident Certificate

2. Electricity Duty Exemption

• 100% electricity duty exemption for eligible manufacturing units for a defined period

3. Stamp Duty Reimbursement

• Reimbursement of stamp duty paid on purchase/lease of land for industrial purposes

4. EDC (External Development Charges) Reimbursement

• Reimbursement of EDC paid to development authorities

5. ETP (Effluent Treatment Plant) Reimbursement

• Financial support for setting up effluent treatment infrastructure, promoting environmentally responsible manufacturing

For Large and Mega Units

6. Capital Investment Subsidy

1. Units are eligible to avail reimbursement of eligible capital expenditure depending on investment size and block location (A, B, C, D)
2. Capital subsidy capped at INR 300 Crore, reimbursed in equal annual installments over 10 years
3. Calculated as a percentage of Fixed Capital Investment (FCI)

7. Net SGST Reimbursement

• Reimbursement of State GST (SGST) paid on manufactured goods for a defined period, based on location

8. Production Linked Incentive (PLI)

1. Incentive proportional to incremental turnover achieved annually by the enterprise
2. Incentive rate varies by block location of the project

9. Custom Incentives via HEPB (Haryana Enterprise Promotion Board)

• Ultra-Mega and special category projects can be offered customized incentive packages through the HEPB, over and above the standard package

Incentive Cap

The cumulative incentives for any Medical Device Unit or Park shall not exceed 125% of Fixed Capital Investment (FCI).

This ceiling ensures fiscal responsibility while still offering generous support to investors.

Special Incentives for Medical Device Parks

The policy provides dedicated fiscal incentives for Medical Device Parks, encouraging cluster-based development. Parks receive:

1. Capital Investment Subsidy for park infrastructure
2. Common facility support
3. Dedicated zone benefits aligned with the cluster development vision

Human Resource Development

Reimbursement of Technical Course Fees

The policy supports skill development through:

1. Reimbursement of technical course fees for workers employed in eligible medical device units
2. Strengthening the pipeline of skilled manpower in the sector

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Part III: Regulatory Framework and Compliance

Both policies operate within the broader regulatory ecosystem governed by:

1. Drugs and Cosmetics Act, 1940
2. Medical Devices Rules, 2017
3. Haryana Enterprises and Employment Policy (HEEP) 2020 (baseline policy framework)
4. Schedule M – Good Manufacturing Practices (GMP)

The FDA Haryana plays a pivotal enforcement role. Since 2025, the State Drug Controller has implemented several modernization measures including a dual-mode digitized approval system, mandatory CCTV installation in pharmacies, and rigorous GMP compliance audits for over 118 allopathic manufacturers.

A centralized online portal for NDPS (Narcotic Drugs and Psychotropic Substances) information has also been established, integrating FDA, CID, and Police units for tighter enforcement.

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Part IV: Synergy with National and State-Level Policies

Make in Haryana Industrial Policy 2026

In 2026, Haryana further expanded its ambitions by approving a package of 10 mega industrial policies aimed at attracting ₹5 lakh crore in investment and generating 10 lakh jobs across sectors including pharmaceuticals, electronics, AI infrastructure, and data centres.

Key highlights relevant to pharma and med-tech:

1. Replacement of the A/B/C/D block system with a dynamic Core, Intermediate, Sub-Prime, and Prime/Focus Areas classification
2. Net SGST reimbursements ranging from 30% to 70% for up to 12 years
3. Capital subsidies of up to 30% for Ultra Mega projects
4. R&D incentives of up to ₹50 crore
5. Export-linked benefits for enhanced viability
6. 50% of eligible incentives released within 7 working days, with an 8% per annum penalty on state for delays past April 2026

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Part V: Why Haryana is an Attractive Destination

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Part VI: Challenges and Way Forward

Despite its strengths, the policy ecosystem faces some challenges:

1. Ensuring compliance with revised Schedule M (GMP) norms, especially for smaller MSME units
2. Preventing license abuse in pharmacies (renting licenses to unauthorized operators)
3. Bridging the technology gap between domestic manufacturers and global MNCs in high-end medical devices
4. Sustaining R&D investment given long gestation periods and high costs

The roadmap forward involves strengthening the industry-academia interface, expanding the Pharma Park at Karnal, setting up dedicated medical device clusters, and aligning with central government PLI schemes to maximize investment flow.

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Conclusion

Haryana’s Pharmaceutical and Medical Devices Manufacturing Policies represent a well-designed, incentive-rich framework that positions the state as a serious contender in India’s healthcare manufacturing landscape. With clearly defined targets — ₹2,000 crore in pharma investment, ₹3,000 crore in medical devices, and a combined employment generation target of over 45,000 jobs — the policies offer concrete roadmaps backed by meaningful fiscal support.

When combined with the overarching Make in Haryana Industrial Policy 2026, these sectoral policies create a compelling case for both domestic entrepreneurs and global investors to establish world-class manufacturing facilities in the state. For Haryana, the ambition is clear: to become the healthcare manufacturing capital of North India and a recognized name in global pharma and medical device supply chains.

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