Delhi Industrial Policy 2026: What It Means for Companies Setting Up Offices in Delhi

What was approved, and when

On 13–14 October 2026 (reports differ on the exact day of the Cabinet meeting), the Delhi government, chaired by Chief Minister Rekha Gupta, approved the Delhi Industrial Policy 2026. News reports describe it as a 10-year roadmap to attract clean, technology-led and knowledge-based industry, modernise existing units and create jobs, especially for young people and women.

Three points stand out for anyone planning office space in the capital:

• Office-based sectors are now explicitly in scope. IT, ITeS and digital services, and GCCs, sit alongside data centres, R&D, health and wellness, urban logistics, circular economy, precision manufacturing, skill development and MSME modernisation in the list of ten priority sectors.
• Rent is an incentive head. Reports list a 40% rental assistance for qualifying IT/digital and GCC units, subject to caps and time limits. For an office user, rent is usually the largest recurring cost, so this matters more than most capital incentives.
• A single window is promised. A dedicated agency, Invest Delhi, will act as the single point of contact for site selection, approvals, incentive disbursal and grievances, working through the Delhi Udyog Mitra Portal.

The Cabinet also set aside ₹1,000 crore for the Mukhyamantri Udyamshree Yojana for FY 2026-27 to 2030-31, aimed at new industries and employment.

Key terms, defined

• GCC (Global Capability Centre): an in-house technology, operations or R&D centre that a multinational sets up in India to serve its global business.
• Rental assistance: a reimbursement of part of the rent paid on an eligible office, usually claimed after payment against a registered lease and proof of payment.
• Digital infrastructure incentive: support for capital spent on IT and network infrastructure. Whether office interiors, furniture or MEP count is decided by the scheme's definitions, which have not yet been published.
• Single window: one agency and portal that coordinates approvals and incentive claims across departments.

The office-related incentives, as reported

The figures below come from news reports of the Cabinet decision, not from the notified scheme text. Different outlets grouped the numbers differently, so treat this table as indicative and check it against the official notification when it is released.

Reports also mention a 25% incentive, up to ₹10 crore, for units that develop workspaces, and support for green energy, energy efficiency and rooftop solar. How these apply to a tenant fitting out a leased floor is not yet clear.

What this changes for an office project in Delhi

1. Delhi re-enters the shortlist for cost-sensitive teams

For years, many technology and services firms in the National Capital Region chose Gurgaon or Noida over Delhi, partly on rent and partly because neighbouring states had clearer incentive policies. Uttar Pradesh, for example, already has a GCC policy that applies in Noida (see our guide to state GCC incentives and your office fit-out). A 40% rent support, even capped and time-limited, narrows the gap for teams that want Delhi locations such as Nehru Place, Jasola, Saket or Aerocity for client access, talent or metro connectivity. It does not make Delhi automatically cheaper. That depends on the building, the cap, and whether your company qualifies.

2. The lease becomes part of your incentive file

Rental support is normally paid against a valid, registered lease in the name of the claiming entity, for premises used for the eligible activity. If the lease is signed by a group company, an affiliate or a co-working operator, the claim can fail. Before you sign, ask:

• Is the lessee the same legal entity that will apply under the policy?
• Is the building's land use and approved use compatible with office or IT use?
• Will the lease be registered, and is stamp duty paid on it?
• Does the rent schedule clearly separate rent from maintenance and fit-out recovery?

3. Fit-out spend needs a clean, itemised trail

The reported "digital infrastructure" head may or may not include interior works. Even so, a clean record costs nothing and protects you if the final rules allow it. Ask your fit-out contractor for an itemised bill of quantities (BOQ), even on a turnkey contract, so that IT cabling, network racks, UPS, access control and server-room works are shown separately from civil, ceiling, flooring and furniture. Invoices should be in the name of the claiming entity, at the office address, with GST details matching your registration.

4. Hiring incentives reward realistic phasing

Per-hire support means headcount growth matters. If you plan to grow from 80 to 200 people over two years, a phased fit-out works well: build the core (reception, server room, pantry, washrooms, meeting rooms) and the first set of workstations now, with power, data and HVAC capacity sized for the full floor. It keeps day-one capex lower without a second disruptive project later.

A practical checklist for CFOs, admin and real estate heads

1. Track the notification. Watch the Delhi government's industries department, Invest Delhi and the Delhi Udyog Mitra Portal for the operational guidelines, eligibility thresholds and claim forms.
2. Map your entity. Confirm whether your company is classed as IT/ITeS/digital services, a GCC, or something else under the final definitions. Women-led status may raise limits, so check how it is defined.
3. Hold the lease until you have read the rules, or add a clause that gives you room if eligibility depends on lease terms.
4. Brief your designer on separation. Ask for a BOQ with IT and network items, MEP and interiors in distinct sections.
5. Keep a fixed-asset register from day one, tagging items to invoices and locations.
6. Pay through banking channels and keep payment proofs with each invoice.
7. Diary every deadline. Most incentive schemes have windows for applying, for starting operations and for submitting claims.

What a Delhi office fit-out costs while you wait for the rules

Incentives can soften the total cost, but the fit-out budget still has to be planned on its own merits. Officea Design & Build's published 2026 rate card for Delhi, Gurgaon, Noida and Chandigarh is per sq ft, with GST extra (see office interior cost per sq ft in Delhi):

The 5,000 sq ft column is simple multiplication for illustration. Your figure depends on the building's condition, layout density, HVAC and electrical scope, and finishes.

Common mistakes to avoid

• Counting the incentive before it is confirmed. Build the business case on the base cost, then treat any support as upside until the rules are out.
• Signing through the wrong entity. A lease or invoices in a parent or sister company's name can make an otherwise valid claim fail.
• Lump-sum invoices. A single "office interiors" invoice gives an assessor nothing to verify.
• Ignoring building approvals. Incentives do not fix a building that is not cleared for office use or lacks fire compliance. Check the occupancy certificate and fire NOC status early.

How Officea Design & Build can help

Officea Design & Build works from offices in Delhi (Nehru Place), Gurgaon, Noida and Bangalore and delivers projects across India. On a design-and-build or turnkey contract, one team is responsible for the layout, BOQ, MEP, interiors and handover documents. For an incentive-linked project, that single point of accountability makes it easier to keep invoices, drawings and asset records consistent. Officea is not a tax or incentive adviser, so your CA or incentive consultant should confirm eligibility. Officea can prepare a site survey, a test-fit layout and an itemised budget that is ready for that review. See our office fit-out in Delhi and IT and GCC offices pages.

Frequently asked questions

What is the Delhi Industrial Policy 2026?

It is a 10-year policy approved by the Delhi Cabinet in October 2026 to attract clean, technology-led and knowledge-based industries to Delhi. It names ten priority sectors, including IT, ITeS and digital services, GCCs, data centres and R&D. Investors deal with Invest Delhi through the Delhi Udyog Mitra Portal.

Does the Delhi Industrial Policy 2026 give an office rent subsidy?

News reports say it offers 40% rental assistance for eligible IT, ITeS, digital services and GCC units, subject to a cap of about ₹2 crore and a time limit of two to three years. The exact eligibility rules and claim process will be in the official guidelines, so confirm them before relying on the support.

Are office interior and fit-out costs covered under the Delhi policy?

That is not yet clear. Reports mention incentives for digital infrastructure and for units developing workspaces, but not whether a tenant's interiors, furniture or MEP qualify. Keep an itemised BOQ and invoices so you can claim whatever the final definitions allow.

Is Delhi now cheaper than Gurgaon or Noida for an IT office?

Not automatically. Total cost depends on rent, maintenance, the incentive caps and whether your company qualifies. Compare the full occupancy cost over the lease term in each location, with and without the incentive, before deciding.

How much does an office fit-out cost in Delhi in 2026?

Officea's published 2026 rate card for Delhi is ₹1,800 per sq ft (Basic), ₹2,200 (Medium), ₹2,600 (Good) and ₹4,500 (High end), with GST extra. The final figure depends on the building's condition, the layout and the MEP scope.

What should we do before signing a Delhi office lease?

Confirm the lessee entity matches the entity that will claim incentives, check the building's approved use and fire compliance, and make sure the lease will be registered. Then get a site survey and test-fit layout so you know the space works before you commit.

Sources

• Business Standard: Delhi clears Industrial Policy 2026, plans ₹1,000 crore for new industries (15 Oct 2026)
• ANI: Delhi Cabinet approves Delhi Industrial Policy 2026 (14 Oct 2026)
• ETV Bharat: Rekha Gupta Cabinet approves Industrial Policy 2026 (14 Oct 2026)
• KNN India: Delhi approves 10-year industrial policy (15 Oct 2026)
• The Patriot: Delhi's new industrial policy, incentives for 10 priority sectors (14 Oct 2026)
• Officea 2026 rate card