Government Incentives

Overview 

The government has been focused on boosting the economy by introducing various incentive schemes from time to time. These incentives provide fiscal and non-fiscal benefits to industry, thereby promoting manufacturing, services, employment opportunities, and infrastructure development. Typically, these schemes focus on a particular sector or region and use various thresholds, such as investment, incremental production, employment generation, and research and development, to determine eligibility. Interestingly, certain schemes also provide for customised incentive packages for large projects.

The Central and State Governments of India provide incentives in the form of subsidies, exemptions, concessions, and duty deferrals under industry- or state-specific policies, the Foreign Trade Policy, etc. These incentives provide fiscal and non-fiscal benefits for eligible investments, including greenfield and brownfield projects and research & development activities. Businesses can often avail a combination of incentives extended by the Central and the State Governments.