New Delhi: Delhi govt has released a draft industrial policy for 2025-35, promising to establish a Rs 400-crore venture capital fund, reimburse Rs 50 crore in capital investment, and promote a plug-and-play model of development in public-private partnerships (PPP) to boost the service sector in the national capital. According to sources, Delhi govt possesses vast land in three proposed industrial areas at Baprola, Ranikhera and Kanjhawala, as well as existing ones in Bawana, Narela and other parts of the city. These areas are suitable for setting up “non-polluting, non-water intensive and high-margin service industries”. However, a conducive atmosphere and incentive-based policies are required to attract big players to invest in the capital, a senior Delhi govt official said. The draft industrial policy focuses on three major sectors: frontier tech services such as banking, financial services and insurance, artificial intelligence, big data, gaming, animation, biotech, and information technology and IT-enabled services, apart from research and development (R&D), and hospitality. It has been made public to invite feedback and suggestions from stakeholders. Officials said the policy will remain in place for 10 years from the date of notification or until a new policy replaces it. “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,” the draft policy read. “Investor-friendly initiatives need to be introduced for fintech, AI, biotech, and research and development sectors, encouraging leading global companies to set up headquarters in Delhi,” the document stated. According to the draft policy, the scarcity of commercial office spaces, along with the ever-increasing demand for transport and logistics facilities and the requirement for skilled labour, has contributed to a reduction in the IT and ITeS sector’s contribution to Delhi’s economy. With the new policy, govt aims to augment the availability of expansive office spaces, ensure dependable power and transportation infrastructure, and foster robust R&D endeavours in innovative technologies. Apart from setting up a venture capital fund and reimbursing up to Rs 50 crore of capital investment, govt has decided to offer a 6% subsidy per annum for the first five years and reimbursement of 100% state GST for five years, among other incentives. It has also suggested various greenfield interventions to promote the sector and support the intellectual property rights ecosystem with fast-track approvals on patents. In the R&D sector, the policy proposes expanding reach within academic and research institutions, Rs 10 lakh support, creating a portal to highlight existing capacity, infrastructure and available funds. Setting up mini research and innovation clusters for tech upgrades, adoption of best practices and cross-fertilisation of ideas, collaboration between govt and the private sector for training and capacity building, new grants and remodelling old grants are also proposed. Moreover, the draft recommends holding global investor summits and other events to promote industrial development in Delhi. To transform the capital into a global hub for business and leisure tourism, govt has proposed a series of targeted interventions, including increasing hotel rooms near locations like ITPO at Pragati Maidan and Yashobhoomi for the hospitality sector. To ease congestion and encourage a walk-to-work culture, the policy has proposed allowing hotels and serviced apartments within commercial centres located in industrial zones. Such facilities can also be developed by converting plots that are accessible via 30-metre-wide roads. The policy has also emphasised developing tourism infrastructure on govt-owned facilities through PPP arrangements.Further, to enhance Delhi’s culinary and nightlife appeal, the draft recommends making the capital a restaurant- and bistro-friendly city by streamlining regulatory compliance and having a reasonable alcohol policy. The policy proposes providing credit enhancement to MICE (meetings, incentives, conferences, exhibitions) infrastructure through a scheme in coordination with banks, by using a venture capital fund of Rs 400 crore. “The hospitality industry showcases Delhi’s unique identity and contributes significantly to the local economy. The policy recognises the immense potential of hospitality, and through strategic initiatives, it aims to attract tourists and provide an exceptional and memorable experience,” it said. Delhi’s business environment, the policy noted, suffered from “significant regulatory inefficiencies”, including lengthy 4- to 6-month registration and licensing processes, multiple agency approvals, bureaucratic “delays”, “corruption” and complex tax policies. This “hinders” businesses, especially SMEs, “discouraging” FDI and “slowing” infrastructure development. “To address these issues, Delhi must leverage AI-driven automation, digital governance and investor-friendly frameworks to create a seamless and transparent economic ecosystem,” the policy suggested, urging adoption of best practices like those in Dubai, Shanghai and Singapore.
