Five leading states
The table covers five leading states for pharma, biotech and devices. Incentives are summarised from policy texts; eligibility thresholds, caps and sector lists apply.
| State | Policy and validity | Headline incentives |
|---|---|---|
| Telangana | Next-Gen Life Sciences Policy 2026-30, unveiled at Davos in January 2026 and approved by the state Cabinet in May 2026; targets USD 25 bn and 500,000 jobs by 2030 | As reported at the January 2026 launch: 100% net SGST reimbursement for five years from commercial production; 100% stamp and transfer duty reimbursement; 25% of land cost reimbursed (capped at ₹10 lakh) in state parks; Innovation Fund of ₹100 crore, scalable to ₹1,000 crore. Telangana makes about 40% of India’s drugs (Invest India). |
| Tamil Nadu | Tamil Nadu Industrial Policy 2021 (issued to run to 31 March 2025, since extended); pharmaceuticals and bulk drugs are a listed sector; central device park approved | 100% SGST reimbursement for 15 years, or a capital subsidy of up to 25% paid over up to 15 years; training subsidy of ₹4,000 a worker a month for six months (₹6,000 for women and specified groups). Ranked 4th nationally in device manufacturing (Invest India). |
| Karnataka | Karnataka Industrial Policy 2025-30, valid five years from 8 February 2025 | Large, mega and ultra-mega projects: capital subsidy of 10% to 25% of fixed capital investment by zone, or a production-linked incentive of 1.0% to 2.5% of net sales for 7 years; 100% stamp duty exemption for eligible projects. |
| Maharashtra | Industry, Investment and Services Policy 2025, in effect for five years from notification | Investment Promotion Subsidy based on 100% of gross SGST on first sales in the state for eligible MSMEs and Special LSI units; six Ultra Mega Industrial Parks of at least 5,000 acres each; Invest Maharashtra budget of ₹3,000 crore. |
| Uttar Pradesh | Industrial Investment & Employment Promotion Policy 2022, in force for five years; central device park with 101 units allotted land by Sep 2025 | Capital subsidy of 10% to 30% of eligible capital investment by region and size, paid over 10 to 20 years, or 100% net SGST reimbursement; stamp duty exemption of 50% to 100% by region. Apply before commercial operations begin. |
Sources: Business Standard, 21 Jan 2026; Deccan Chronicle, 24 May 2026; Akashvani, 22 Jan 2026; Invest India state pages (1 Oct 2026); TN Single Window Portal; Karnataka, Maharashtra and UP policy texts; DoP Annual Report 2025-26.
State notes
- Telangana. The Next-Gen Life Sciences Policy 2026-30 was unveiled at Davos in January 2026 and approved by the state Cabinet in May 2026. The incentive figures above are as reported at the January 2026 launch; confirm them against the notified policy text. Hyderabad is where Eli Lilly and Sanofi placed their manufacturing, quality and capability-centre investments (see recent investments).
- Tamil Nadu. The 2021 policy was issued to run to 31 March 2025 and has since been extended. Pharmaceuticals and bulk drugs are a listed sector, and a central medical device park is approved in the state.
- Karnataka. The 2025-30 policy runs five years from 8 February 2025. The capital subsidy and the production-linked alternative are for large, mega and ultra-mega projects, with rates set by zone.
- Maharashtra. The Investment Promotion Subsidy is based on 100% of gross SGST on first sales in the state and is available to eligible MSMEs and Special LSI units.
- Uttar Pradesh. The application must be made before commercial operations begin, and at least 80% of the capital investment must be made after the policy’s effective date. The central device park in the state had 101 units allotted land by September 2025.
Central parks by state
Central park schemes sit alongside the state policies:
| Park type | State and site | Central support |
|---|---|---|
| Bulk drug park | Jambusar, Gujarat (2,015.02 acres) | Central grant of up to ₹1,000 crore for shared infrastructure |
| Bulk drug park | Nakkapalli, Andhra Pradesh (2,001.80 acres) | Central grant of up to ₹1,000 crore for shared infrastructure |
| Bulk drug park | Himachal Pradesh | Central grant of up to ₹1,000 crore for shared infrastructure |
| Medical device park | Uttar Pradesh, Madhya Pradesh and Tamil Nadu | Central grant of up to ₹100 crore a park; 194 makers had land by Sep 2025 |
Details of the park schemes and their status are on central incentives. State policies across all sectors are compared on state incentives.
Choosing between SGST refund and capital subsidy
Tamil Nadu, Karnataka and Uttar Pradesh each offer a choice between an SGST-linked incentive and a capital or production-linked subsidy. The SGST route rewards domestic sales taxed in the state; an export-oriented plant with little in-state sales may find a capital subsidy paid over 10 to 20 years more valuable. Eligibility thresholds, caps and sector lists in each policy decide which route is open.
What to check next
- Confirm the notified text of Telangana’s 2026-30 policy against the figures reported at launch.
- Check whether Tamil Nadu’s extended 2021 policy still applies to new applications, or whether a successor policy has been notified.
- Model SGST refund against capital subsidy for your sales mix before choosing a state.
- In Uttar Pradesh, file the application before commercial operations and time capital spend so that at least 80% falls after the policy’s effective date.
- Confirm plot availability in the central park you are targeting with the state agency.