Delhi govt releases Industrial Policy 2025-35 draft

The draft policy, a copy of which was accessed by HT, seeks to position Delhi as a “global business hub” by leveraging its unique strengths and addressing challenges of space, regulatory ecosystem, skilled manpower, research and development

New Delhi

The policy will also push for industries to move out of central Delhi. (HT Archive)

The Delhi government released its draft Industrial Policy 2025-35 on Monday, proposing a ₹400-crore venture capital fund and ₹50-crore capital reimbursement to support emerging industries in frontier tech sectors, such as banking, gaming, animation and artificial intelligence (AI).

The draft policy, a copy of which was accessed by HT, seeks to position Delhi as a “global business hub” by leveraging its unique strengths and addressing challenges of space, regulatory ecosystem, skilled manpower, research and development.

“The policy seeks to foster a future-ready and non-polluting industrial ecosystem in Delhi by promoting high-value, innovation driven sectors like frontier technologies and research and development. The policy aims to harness the city’s skilled human capital, create quality employment opportunities, and ensure inclusive, sustainable economic growth, while making optimal use of Delhi’s limited land and environmental resources,” an official of the industry department said.

Officials said that under the policy, the government will reimburse 50% of fixed capital investment over a period of five years, capped at ₹50 crore. The ₹400-crore fund will support emerging industries by boosting innovation and scalability, they said.

According to the draft policy, an interest subsidy of 6% per annum will be provided for the first five years, along with 100% reimbursement of state GST for the same period. Additionally, there will be a 100% reimbursement of patent filing costs, up to ₹5 lakh per patent, and a 50% exemption on wheeling and transmission charges for interstate power purchases.

In the R&D sector, the draft policy proposes to expand engagement with academic and research institutions, provide ₹10 lakh support, and develop a dedicated portal to showcase existing R&D infrastructure, capabilities, and available funding.

The policy also emphasised institutional support, by roping in business support professionals to facilitate growth, and setting up an “Investor Facilitation Centre” to handle investor queries, fast track approvals and ensure seamless coordination across departments.

The industries department urged the public and the business community to give their suggestions before July 30. The policy has been uploaded on the website of the industries policy.

Delhi lies at the heart of the National Capital Region (NCR), having four key satellite cities across Uttar Pradesh and Haryana. The per capita income of Delhi at current prices clocked at ₹4.61 lakh in 2023-24, compared to ₹3.89 lakh in 2021-22 and ₹3.31 lakh in 2020-21.

“The BJP government is unwavering in its commitment to positioning Delhi as a global business hub by leveraging its unique strengths and addressing real-world challenges. Through the industrial policy, we aim to foster a progressive, innovation-driven economy grounded in knowledge and frontier technologies. This is not just a vision—it is a proactive step toward sustained economic excellence and inclusive growth,” industries minister Manjinder Singh Sirsa said.

“The draft policy has been put in the public domain for public suggestions. The government will study the suggestions and soon the final policy will be out,” he said.

Delhi’s draft policy compares favourably to similar policies brought out by other states, in terms of regulatory reforms, digital governance and hospitality focus.

Karnataka’s industrial policy brought out in February 2025 targets ₹7.5 lakh crore in investment and creation of 2 million jobs by 2029-30. It is promoting advanced sectors, such as aerospace and defence, future mobility, logistics/warehousing, and renewable energy by offering flexible incentives, such as capital subsidy or production-linked incentives, besides enhances infrastructure by creating new investment zones and industrial corridors.

The Gujarat industrial policy of 2020 identified 15 thrust sectors such as agro and food processing, semiconductors, aerospace, auto and auto components, electric vehicles, green energy, robotics, and fintech. The Gujarat policy also offers capital and interest subsidies up to 12% of fixed capital investment for large industries under capital subsidy, and up to 7% for MSMEs, with a cap of ₹35 lakh per annum for 7 years for interest subsidies. It also provides land and infrastructure support, such as long-term lease of government land at 6% of market rate for up to 50 years.

Infrastructure and manpower

The draft policy proposes to develop plug-and-play IT parks will be developed through public-private partnerships (PPP) and new tech service centres at Baprola, Ranikhera, and Kanjhawala.

The policy also proposes to develop low-cost industrial parks and small and medium enterprises zones with tax incentives to encourage businesses to relocate outside central Delhi. It is aimed at boosting entrepreneurship, reducing congestion and making Delhi more business-friendly, officials said.

“The mission of the policy is to focus on high-value sectors by strengthening existing ecosystems, expanding and efficiently using commercial and industrial spaces, and improving transport and logistics infrastructure. Efforts will also enhance the overall business environment, supported by strong policy governance and effective implementation mechanisms,” the draft read.

With regard to workforce, the policy proposed deploying AI-driven personalised learning platforms to assess individual skill deficiencies and provide customised training, on the lines of a reskilling initiative undertaken by Singapore to retrain over 500,000 professionals.

Gig workers are proposed to be trained by establishing state-funded vocational training centres, and will offer certifications in sectors, such as logistics, hospitality, security, construction and personal services, to enhance career mobility and help workers access higher-paying jobs.

The policy proposed to adopt best global practices from Dubai and Singapore, among others, for bettering the business climate in the Capital. These include setting up one-stop digital approval systems, pre-zoned commercial areas with ready clearances, AI-driven regulatory automation, and simplified taxes, among others.

“The draft policy is a welcome step. It has the potential to lay the foundation for Delhi to become a major IT and innovation hub. The plug-and-play ecosystem and the proposed venture fund would be attractive to the startup ecosystem,” said Dilip Chenoy, former secretary general FICCI.

Hospitality in focus

The policy seeks to improve MICE (meetings, incentives, conferences, and exhibitions) tourism in the Capital, terming it important in boosting economic growth and development. It suggests interventions of increasing hotel rooms near key venues, such as ITPO at Pragati Maidan and Yashobhoomi.

“Delhi has been an important stage for MICE activities across the country and is home to the country’s biggest MICE setups, such as ITPO Pragati Maidan, World Trade Centre at Nauroji Nagar, and Indira Gandhi Indoor Stadium, among others. Good international connectivity & regional linkages, and well-developed infrastructure, including modern convention centres and hotels, have made it a preferred destination for national and international events,” the draft policy said.

Besides increasing hotel rooms, it also suggested setting up worker housing centres near venues on public-private partnership (PPP) mode, which may also be used to develop tourism infrastructure at government facilities. The policy also proposed making Delhi a a restaurant and bistro-friendly city with streamlined compliance and regulatory burden, a reasonable alcohol policy, and credit enhancement to MICE infrastructure through a scheme and in coordination with banks.