Delhi Unveils Draft Industrial Policy to Boost Hospitality and Tech Sectors
The Delhi government has proposed a series of interventions in its draft Industrial Policy 2025-35 to enhance the city's hospitality sector and support high-tech industries, addressing land scarcity and sustainability concerns.
DelhiIndustrial PolicyHospitalityTechnologyReal EstateReal EstateJul 22, 2025
The draft, released for public feedback by the Industries Department, identifies three focus sectors including Frontier tech services, research & development, and hospitality (excluding tourism), that are expected to drive the capital’s economic growth while addressing land scarcity and sustainability concerns. To support Frontier tech services such as AI, Big Data, Gaming, Biotech, and IT & ITeS, the government has proposed major fiscal incentives.
These include 50% capital investment reimbursement (up to Rs 50 crore), 6% annual interest subsidy for five years, full reimbursement of patent filing costs up to Rs 5 lakh per patent, and a Rs 400 crore venture capital fund. Additionally, a 100% NET SGST reimbursement for five years and a 50% exemption on interstate power wheeling and transmission charges are proposed.
The policy acknowledges the space crunch in commercial real estate and proposes developing Plug & Play IT Parks and Global Capability Centres in Baprola, Ranikhera, and Kanjhawala through PPP models. It also plans to ease regulatory norms to make Delhi more conducive to restaurants and nightlife by streamlining compliance and adopting a “reasonable” alcohol policy.
To strengthen MICE (Meetings, Incentives, Conferences, Exhibitions) infrastructure, the policy proposes using the venture capital fund for credit enhancement, encouraging PPP-led development of hotels, serviced apartments, and worker housing near major venues like Pragati Maidan and Yashobhoomi. It also suggests allowing such facilities in commercial centres within industrial zones, particularly those on 30-metre-wide roads.
The policy further recommends building tourism infrastructure on government land through PPPs and initiating capacity-building programmes for hospitality service providers through government skill initiatives. Delhi, the document notes, already enjoys excellent regional connectivity, modern convention infrastructure, and a strong base for MICE tourism, which the policy seeks to expand.
“The hospitality industry showcases Delhi’s unique identity and contributes significantly to the local economy. Through strategic initiatives, the policy aims to attract tourists and provide a memorable experience, further bolstering economic prosperity,” the draft notes. Feedback from stakeholders is invited before the final policy is notified.
Frequently Asked Questions
What is the main goal of the Delhi government’s draft Industrial Policy 2025-35?
The main goal is to position Delhi as a global hub for business and leisure tourism by strengthening the city’s hospitality sector and supporting high-tech industries, while addressing land scarcity and sustainability concerns.
What fiscal incentives are proposed for Frontier tech services?
The proposed incentives include 50% capital investment reimbursement (up to Rs 50 crore), 6% annual interest subsidy for five years, full reimbursement of patent filing costs up to Rs 5 lakh per patent, and a Rs 400 crore venture capital fund.
How does the policy address the space crunch in commercial real estate?
The policy proposes developing Plug & Play IT Parks and Global Capability Centres in Baprola, Ranikhera, and Kanjhawala through PPP models to address the space crunch in commercial real estate.
What measures are proposed to strengthen MICE infrastructure?
The policy suggests using the venture capital fund for credit enhancement, encouraging PPP-led development of hotels, serviced apartments, and worker housing near major venues like Pragati Maidan and Yashobhoomi. It also recommends allowing such facilities in commercial centres within industrial zones.
How will the policy enhance the hospitality industry in Delhi?
The policy aims to enhance the hospitality industry by building tourism infrastructure on government land through PPPs, initiating capacity-building programmes for hospitality service providers, and easing regulatory norms to make Delhi more conducive to restaurants and nightlife.
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