The Delhi government on Monday released its draft Industrial Policy 2025-35. It proposes a ₹400-crore venture capital fund and capital reimbursement measures. These are aimed at promoting emerging industries in frontier technology sectors. This includes banking, gaming, animation, and artificial intelligence, as reported by Hindustan Times.
The draft aims to position the capital as a global business hub. It plans to leverage its skilled workforce and enhance research and development. The draft also focuses on overcoming limitations such as space constraints and regulatory hurdles.
“The policy seeks to foster a future-ready, non-polluting industrial ecosystem by promoting high-value, innovation-driven sectors,” a senior industry department official said. “The goal is to create quality employment opportunities and ensure sustainable economic growth while making efficient use of Delhi’s limited land and environmental resources.”
Under the proposed policy, the government will reimburse 50% of fixed capital investment over five years, up to ₹50 crore. The ₹400-crore fund is intended to boost innovation and scalability in emerging sectors.
The draft also outlines a 6% annual interest subsidy for five years. It includes a full reimbursement of state GST during the same period. Additionally, companies can avail of a 100% reimbursement of patent filing costs. This reimbursement is capped at ₹5 lakh per patent. They also receive a 50% exemption on wheeling and transmission charges for interstate power purchases.
In a bid to strengthen the R&D ecosystem, the policy suggests closer collaboration with academic and research institutions. It also offers ₹10 lakh support for select projects. Additionally, there will be a dedicated portal showcasing R&D infrastructure and funding opportunities.
The draft recommends setting up an Investor Facilitation Centre to streamline approvals, address investor queries, and coordinate with various departments. Business support professionals will also be engaged to assist in industrial growth.
The industries department has invited suggestions from the public and business community until July 30. The draft policy is available on the department’s website.
Delhi’s strategic position in the National Capital Region strengthens its business appeal. It is supported by key satellite cities in Uttar Pradesh and Haryana. The city’s per capita income reached ₹4.61 lakh in 2023-24, rising steadily from ₹3.89 lakh in 2021-22 and ₹3.31 lakh in 2020-21.
Industries Minister Manjinder Singh Sirsa emphasized the government’s commitment to making Delhi a global business hub. “This draft policy is a proactive step toward building a progressive, innovation-driven economy based on knowledge and frontier technologies,” Sirsa said.
Delhi’s draft policy comes amid similar industrial strategies from other states. Karnataka’s February 2025 policy targets ₹7.5 lakh crore in investments. It also aims to create 2 million new jobs by 2029-30. The policy promotes sectors like aerospace, future mobility, logistics, and renewable energy.
Gujarat’s 2020 industrial policy focuses on 15 sectors, including semiconductors, EVs, robotics, and green energy. It offers subsidies of up to 12% for large industries. Additionally, it provides up to 7% for MSMEs. The policy also includes long-term land leases at discounted rates.
The Delhi policy proposes developing plug-and-play IT parks through public-private partnerships in areas like Baprola, Ranikhera, and Kanjhawala. It also calls for low-cost industrial parks and SME zones with tax incentives, encouraging businesses to move beyond central Delhi.
Efforts will focus on optimizing commercial spaces. They will improve transport and logistics infrastructure. They will also adopt best practices from cities like Dubai and Singapore. These include one-stop digital approval systems, AI-driven regulatory automation, and simplified tax regimes.
On workforce development, the draft recommends AI-powered personalized learning platforms for skills training. It suggests vocational centers for gig workers. Additionally, it proposes certification programs in sectors like logistics, hospitality, security, and construction.
The policy underscores the importance of MICE (meetings, incentives, conferences, and exhibitions) tourism. It suggests adding hotel rooms near venues like ITPO Pragati Maidan and Yashobhoomi.
“Delhi has long been a prime location for MICE activities, owing to its connectivity, infrastructure, and world-class convention centers,” the draft stated.
Proposals also include worker housing near event venues through PPP models. There are initiatives to make Delhi a restaurant- and bistro-friendly city. These aim to reduce regulatory burdens and ease compliance.
Dilip Chenoy, former secretary general of FICCI, welcomed the draft policy. He noted its potential to position Delhi as a major IT and innovation hub. “The plug-and-play ecosystem and venture fund will be significant draws for startups,” he said.
The government plans to finalize the policy after reviewing feedback from stakeholders.