Haryana IT/ITeS, AI and Emerging Technologies Policy 2026: Incentives, Compute Subsidies and AI Programmes

Haryana's IT/ITeS industry was worth about INR 1.56 lakh crore in FY24, including exports of around INR 79,400 crore. Much of it is concentrated in the cyber hubs of Gurugram and Panchkula. With the Haryana IT/ITeS, AI and Emerging Technologies Policy 2026, the State has set out to roughly double that base within five years. Its targets are:

•         IT/ITeS turnover above INR 3 lakh crore;

•         exports above INR 1.25 lakh crore; and

•         1,00,000 new jobs.

The policy follows the same building blocks as Haryana's other 2026 sectoral policies: employment-linked CAPEX and OPEX support, local hiring subsidies and park-developer incentives. It adds a set of AI-specific measures, including subsidised GPU compute for small businesses, government-funded AI challenges and Centres of Excellence.

Who is eligible?

The policy covers units engaged in IT, ITeS, AI and other emerging technologies as defined by the Government of India or in the policy. The policy's annexures give indicative lists:

•         IT: software and SaaS, cloud and data-centre technology services, cybersecurity, data engineering, AI/ML, blockchain, IoT and robotics software.

•         ITeS: BPM/BPO, GCCs, contact centres, analytics, content moderation, transcription, e-learning, GIS, remote infrastructure management and AI-enabled services.

Emerging technologies expressly include AI/ML, blockchain, IoT, quantum, edge computing, AR/VR/MR, cloud-native, metaverse, neuromorphic computing, cybersecurity, digital twins, robotics, and big data/HPC.

Key conditions:

•         Timing: commercial operations must begin within the policy period. Section 7.2 refers to commencement after notification, while the definition of "new unit" refers to 1 January 2026. Units that started in the interim should confirm their position under the operational guidelines.

•         Prior application: the application must be filed before commencing commercial operations.

•         Expansion: allowed once, subject to the standard FCI thresholds (50% of existing FCI, or 25% with a minimum of INR 125 crore, or above the Mega/Ultra Mega threshold).

CAPEX support

Location	CAPEX reimbursement
Gurugram, non-TOD areas	20% of ECE
Gurugram, TOD zones	25% of ECE
Any other district	30% of ECE

The overall ceiling applies to all locations:

•         Owned office: INR 1.5 crore per 100 eligible employees, or INR 30 crore, whichever is lower.

•         Leased office: INR 1.0 crore per 100 eligible employees, or INR 20 crore, whichever is lower.

How the CAPEX support works:

•         It is paid in ten annual instalments.

•         Eligible Capital Expenditure includes building and utilities, power back-up, furnishing and fit-outs, new equipment, IT hardware and software, stamp duty on land or office purchase/lease, EDC (owned buildings), captive renewable energy of 100 kW or more, and green building certification costs. ECE is recognised until three years after commencement.

•         Eligible employees are direct staff (payroll, or contract with ESI/PF) continuously employed for at least one year. The ceiling uses the peak headcount in the first three years, rounded in blocks of 100. A unit moves to the next block only if it exceeds the current block by more than 50: 151 employees counts as 200, but 150 counts as 100.

OPEX support (five years)

Location	OPEX reimbursement
Gurugram, non-TOD areas	50%
Gurugram, TOD zones	60%
Any other district	70%

The annual ceiling is INR 50 lakh per 100 eligible employees or INR 10 crore, whichever is lower. Eligible OPEX is broad:

•         Net SGST and electricity duty;

•         property tax (owned buildings);

•         lease rentals (75% of rent, capped at 6% of registered-valuer valuation);

•         internet bandwidth and cloud rental charges (from India-registered, GST-registered providers);

•         patent costs, CGTMSE fees, credit rating costs and quality certification costs.

Mega and Ultra Mega projects may negotiate customised packages with the Haryana Enterprise Promotion Board (HEPB).

Human resources and future skilling

•         Employment Generation Subsidy for ten years: at 15% or more Haryana-domicile employees (verified through the Parivar Pehchan Patra), the subsidy is 100% + 20% × (local share − 15%) of average monthly gross salary per local employee, capped at INR 1 lakh a year. For women, SC, Divyang, Agniveer and ex-servicemen staff the base is 120% and the cap INR 1.2 lakh. A floor of INR 48,000 per employee applies.

•         HKRN booster: 100% reimbursement of employer and employee EPF contributions for five years for staff hired through the Haryana Kaushal Rozgar Nigam (each capped at INR 25,000 a year).

•         Internship support: 50% of stipend, up to INR 15,000 a month for six months, for up to 50 interns a year.

•         Public-private training centres with NASSCOM and industry at three locations.

•         AI/emerging technology labs in 100 eligible academic institutions, with 75% of equipment, hardware and software costs reimbursed (up to INR 50 lakh per lab).

Startup support

•         Procurement preference: exemption from tender fees, EMD and prior-experience requirements, and relaxed turnover and performance-security norms in State procurement, subject to technical specifications.

•         Incubation for the top 15 startups each year: up to five free seats in Government incubators, renewable for up to three years.

•         Industry bootcamps on AI, cybersecurity, cloud, data and digital product development.

AI and emerging technology programmes

This section sets the policy apart from earlier IT policies:

•         Haryana AI Development Programme (HAIDP): includes a Global AI Centre in Gurugram and the Haryana Advanced Computing Facility in Panchkula, with a target of upskilling 50,000+ professionals in AI, ML and data analytics.

•         Subsidised compute for Micro and Small Enterprises: 50% reimbursement of GPU/high-performance compute costs, up to INR 10 lakh per unit per year for up to three years. For AI startups and small analytics firms, this may be the most valuable benefit in the policy.

•         Centres of Excellence: up to three CoEs in AI, blockchain, cybersecurity, IoT and similar areas, each eligible for 50% capital support (up to INR 10 crore) and 50% operating support (up to INR 2 crore a year for five years).

•         Haryana Challenge for Change: five governance problem statements each year (in areas such as health, education, agriculture, pollution and service delivery). Up to three proofs-of-concept per problem receive INR 20 lakh each to build a minimum viable solution, and the best solution receives INR 50 lakh to scale up. Participants must have their registered office in Haryana.

Incentives for Cyber City and Cyber Park developers

Private developers of Cyber Parks (5–50 acres) and Cyber Cities (above 50 acres) that obtain a TCP licence and CTE during the policy period may choose between:

•         capital subsidy of 75% (Sub-Prime) or 85% (Prime/Focus) of trunk infrastructure cost, released in four milestone-linked tranches; or

•         Net SGST reimbursement of 60% or 70% for seven years.

Either option is capped at INR 45 crore per park, with 100% stamp duty reimbursement in addition.

Ease of doing business

•         Three-shift operations and night shifts for women, with auto-renewal of permissions on self-certification.

•         Labour self-certification and a single online labour return.

•         Unrestricted FAR, ground coverage and height under the Building Code, subject to safety norms.

•         Time-bound services on the Invest Haryana portal.

•         50% of incentive claims released within 7 working days and the balance within 45 working days, with 8% interest on departmental delays.

Points to keep in mind

1.       Headcount and location drive the numbers. Moving out of non-TOD Gurugram raises the CAPEX rate from 20% to 30% and the OPEX rate from 50% to 70%.

2.       Owning or leasing the office changes the CAPEX ceiling materially.

3.       The GPU compute subsidy is limited to Micro and Small Enterprises, so MSME classification (investment and turnover) should be checked each year.

4.       No stacking with other Haryana policies (other than the MSME and Exports Policy for heads not covered), and Central and State support together are capped at 100% of FCI.

5.       GCCs appear in the ITeS annexure here but also have their own dedicated GCC Policy 2026, so the more beneficial route should be assessed before applying.