Haryana GCC Policy 2026: Incentives, Eligibility And Key Compliance Points For Global Capability Centres

India now hosts nearly 1,700 Global Capability Centres, and states are competing hard to attract the next set of them. On 27 May 2026, the Haryana Industries & Commerce Department notified the Haryana Global Capability Centres (GCC) Policy, 2026 (Notification No. 20/07/2026-4IB-1), after approval by the Council of Ministers on 18 May 2026. The policy is valid for five years from notification, or until the Government of Haryana brings in a new policy or amendment, whichever is earlier.

Having advised multinational clients on cross-border set-ups in India, I read this policy closely. It is more detailed than most state policies on the subject. Below is what it offers and where a company should be careful.

What the policy aims to achieve

The State wants to attract more than 100 new GCCs and support over 30,000 new jobs within the policy period. Haryana already has over 270 GCC units, many of them belonging to Fortune 200 companies. The policy also pushes Tier-II cities such as Panchkula and Hisar as future GCC hubs, which explains why incentives are higher outside Gurugram.

Who qualifies as a GCC under the policy

The definition in Section 2.1 is important. A GCC is a captive centre set up in Haryana by an MNC, or its parent, group, subsidiary or affiliate, to serve the internal global operations of those entities. The functions covered include R&D, product engineering, IT services, analytics, finance, procurement, supply chain, legal and compliance, risk and HR.

The key condition is that the centre must serve only its parent, group, subsidiary or affiliate entities. Services to unrelated third-party clients are not allowed. A centre that also sells to outside customers risks losing eligibility.

The policy also covers Build-Operate-Transfer models, joint ventures, hybrid models and similar contractual arrangements. In each case the centre must be meant for captive use, and eventual or effective control must rest with the MNC or its group entity. Anyone structuring a BOT or JV arrangement should draft the control and transfer provisions with this requirement in mind.

Eligibility conditions to check first

1. Date of commencement: Only units that begin commercial operations on or after 1 January 2026, and within the policy validity, are eligible. Commercial operations are counted from the date of the first sale bill or invoice.
2. Minimum headcount: The unit must have at least 100 employees on payroll, or on contract with an ESI/PF number, within three years of commencement.
3. Application timing: The application must be made to the Department before commercial operations begin. Where operations began between 1 January 2026 and the date of notification, the application had to be filed within two months of notification, which ended on 27 July 2026. That window is now closed. Units that have not yet started operations should apply before their first invoice.
4. Expansion of existing units: Existing GCCs can claim incentives for expansion or diversification if they put in additional Fixed Capital Investment (FCI) of at least 50% of current FCI. Alternatively, 25% will do, subject to a minimum of INR 125 crore, or an amount above the Mega/Ultra Mega threshold. This can be claimed only once in the policy period. A separate GST registration and separate books of accounts are required for the expansion.
5. Single policy benefit: A unit availing fiscal incentives under this policy cannot claim incentives for the same project under another Haryana policy. The exception is the Haryana Progressive MSME and Exports Policy, and only to the extent the incentive is not covered under the same or a comparable head here.
6. Overall cap: Central incentives are over and above these benefits, but the combined incentives from the State and the Centre for the same project cannot exceed 100% of FCI.

CAPEX support

Eligible units get reimbursement of a percentage of Eligible Capital Expenditure (ECE), paid in ten annual instalments.

ECE includes building construction, fit-outs, new machinery, IT hardware and software, stamp duty on purchase or lease, external development charges (owned buildings only), captive renewable energy projects of 100 kW or more, and green building certification costs. Land cost is excluded.

Some details deserve attention:

1. Only employees continuously employed for at least one year count as eligible employees.
2. The maximum headcount in the first three years is used for the ceiling. A unit that exceeds a 100-employee block by more than 50 moves to the next block. A unit with 151 employees is treated as a 200-employee unit, while 150 stays in the 100 block.
3. Spending counts only if it is incurred during the policy period and up to three years after commercial operations begin, or as decided by the Haryana Enterprise Promotion Board (HEPB). Spending in the year before notification is also considered for units that start operations after 1 January 2026.
4. Moving machinery or equipment from another unit does not count.

OPEX support

OPEX reimbursement is 50% for five years in non-TOD Gurugram, 65% for seven years in Gurugram TOD zones, and 65% for nine years in other districts. The annual ceiling is INR 0.75 crore per 100 eligible employees or INR 15 crore, whichever is lower.

Eligible OPEX covers electricity duty, lease rentals, internet bandwidth and cloud rental charges. Lease rent is reimbursed at 75% of actual rent, capped at 6% of the property valuation by a registered valuer. Bandwidth and cloud providers must be registered in India with a valid GST number. Companies using overseas cloud vendors should note this restriction.

Employment-linked benefits

The policy rewards hiring Haryana residents, verified through Parivar Pehchan Patra:

1. Employment Generation Subsidy for ten years, based on the share of local employees in the workforce. It is capped at INR 1 lakh per employee per year, or INR 1.2 lakh for women, SC, Divyang, Agniveer and ex-servicemen categories. Where the average gross salary is below INR 48,000, a minimum of INR 48,000 per annum applies.
2. HKRN Booster: Employees recruited through Haryana Kaushal Rozgar Nigam attract 100% reimbursement of the employer's EPF contribution for five years, and the employee's contribution is also reimbursed through DBT. Each is capped at INR 25,000 per employee per year.
3. Internship support: 50% of stipend, up to INR 15,000 per month, for six months, for up to 50 interns or apprentices per year.

These benefits are tied to the individual employee and can be claimed only once in that employee's lifetime. HR teams should keep records accordingly.

R&D and innovation incentives

New and existing GCCs setting up R&D centres recognised by DSIR or CSIR can claim a capital subsidy of 50% of eligible cost. The limits are INR 50 crore per centre for Ultra Mega projects, INR 25 crore for Mega projects and INR 10 crore for others, paid in five annual instalments. The support extends to five R&D centres. An operational subsidy of 50% of eligible operating expenditure, up to INR 2 crore per centre per year for five years, covers researcher salaries, conferences, publication fees and research inputs. The State will also set up an H-Hub incubator at the HARTRON Innovation Hub in Gurugram. Ultra Mega and Mega projects may get customised packages from HEPB on a case-to-case basis.

Ease of doing business reforms

The policy carries forward existing reforms: the Haryana Enterprises Promotion Centre, the Invest Haryana Single Window Portal with over 140 services, self-certification under 14 labour laws, a unified online labour return, and shorter timelines for Consent to Establish and Operate. GCCs may run three shifts with women working night shifts, subject to safety norms. The Government has also committed to a dedicated GCC Mission, a single-window desk in Gurugram, a matchmaking platform and a GCC Advisory Council.

One of the more useful commitments is on disbursement. Fifty percent of the eligible incentive is to be released within seven working days of application after preliminary scrutiny, and the balance within 45 working days. Delays attributable to the Department attract interest at 8% per annum.

Practical observations from a legal standpoint

1. Operational guidelines are still awaited. Section 9 says schemes will be notified within three months, and a pending scheme will not bar an application that is consistent with the policy. Even so, applicants should expect procedural detail to be settled later.
2. Interpretation lies with the Administrative Secretary. Under Section 10, the Administrative Secretary, Industries & Commerce, decides doubts on interpretation, and the decision is final and binding. This makes early written clarification important.
3. Entity structuring matters. Owned versus leased premises changes the ceilings. The captive-only rule affects how intra-group service agreements and any BOT or JV documents should be drafted.
4. Documentation discipline. Eligibility depends on dates, headcount blocks, one-year employment, ESI/PF numbers and separate books for expansions. Companies should set up these records from day one.
5. Timing of the application. Filing after the first invoice can cost the benefit entirely.

Conclusion

The Haryana GCC Policy, 2026 is a considered attempt to make the State a serious destination for captive centres, with funding for both set-up and running costs, rewards for local hiring, and a faster process for releasing incentives. Its benefits come with conditions on captive status, timing and documentation, and companies that plan this early will be best placed to use it.

This article is for general information only and is not legal advice. Companies planning a GCC in Haryana should take specific advice on their structure and application.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.