Government Incentives and State Industrial policy

Government Incentives

Government Incentives

Various governments around the world provide incentives for industry to setup a business. The incentives are primarily linked to investment, employment generation, technology improvements, geographical benefits and other benefits which will accrue to the respective country due to such setup of the businesses. 

Government Incentives in India

India is a democracy with parliamentary form of government. In India, the governance is divided into federal and state. While federal government provides for overarching framework for the incentives within the vision of the country, the state government provides state specific incentives with an aim to improve the state level participation of the Industries.

Types of Government Incentives

  • Investment linked incentives;
  • Tax rebates and subsidies;
  • Interest rate cuts;
  • Credit guarantee schemes;
  • Deductions in affordable housing;
  • Job creation and training tax credits;
  • Research and development grants;
  • Export promotion measures, like reimbursements of taxes and duties;
  • Automated electronic refund route for input tax credits;
  • Export credit insurance schemes;
  • Production linked Incentives (PLI); &
  • Customised packages for mega projects

What incentives one can expect?

The incentive available to a particular business depends on various factors including the sector in which it is operating, level of investment, geographical location, technology involvement etc. and thus, there is no straight jacketed solution to this. However having said so, there is something always available for you to claim from the government.

As per the survey conducted by us on more than 500 companies including startups, Fortune 500, listed and unlisted companies, it is found that more than 90% of the companies do not know one or the other incentives available to them and thus, it is very crucial for any organisation to consult the right partner having deep experience and insights on the incentives to assist you take an competitive edge over your competitors.

Want to know incentives available for you? Feel free to reach out to us.