What states offer
State support mostly rewards manufacturing, warehousing and cold chains that supply retail, plus rules on trading hours. The five states below are those the source brochure covers; other states have their own industrial policies, summarised under state incentives.
Two state-level facts matter for retail in particular. First, multi-brand retail with FDI is allowed only in the states and union territories that have agreed to it; of the five states below, Maharashtra, Karnataka and Haryana are on that list and Tamil Nadu and Uttar Pradesh are not (see FDI rules). Second, trading hours are a state matter under each Shops and Establishments Act.
| State | Policy and validity | Headline incentives |
|---|---|---|
| Tamil Nadu | Industrial Policy 2021; shops with 10 or more staff may open 24×7 for three years from 5 June 2025 | Choice of 100% SGST reimbursement for 15 years or a capital subsidy of up to 25%; training subsidy of ₹4,000 a worker a month for 6 months (₹6,000 for women and specified groups). |
| Maharashtra | Maharashtra Industry, Investment and Services Policy 2025: in effect for five years from notification; has agreed to FDI in multi-brand retail | Investment Promotion Subsidy on 100% of gross SGST on first sales within 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. |
| Karnataka | Karnataka Industrial Policy 2025-30: five years from 8 February 2025; has agreed to FDI in multi-brand retail | 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 turnover for 7 years; stamp duty exemption for eligible projects. |
| Uttar Pradesh | Warehousing and Logistics Policy 2022; Industrial Investment & Employment Promotion Policy 2022 (five years) | Warehouses, silos and cold chains: 15% capital subsidy, up to ₹5 crore (₹10 crore in designated logistics zones), paid once after start-up; stamp duty exemption of 50% to 100% by region. Manufacturers: capital subsidy of 10% to 30%, or 100% net SGST reimbursement within the policy’s limits. |
| Haryana | Logistics, Warehousing & Retail Policy 2019: expired 8 March 2024, then extended by the state cabinet (January 2025) until a new policy is notified; has agreed to FDI in multi-brand retail | Retail, logistics and warehousing units may operate 24×7 in three shifts; warehousing in C and D blocks: 25% of fixed capital investment, up to ₹5 crore; 100% stamp duty reimbursement; electricity duty exemption for 7 years. |
State notes
Tamil Nadu
The Industrial Policy 2021 incentives are aimed at manufacturing: the choice between SGST reimbursement and a capital subsidy applies to eligible industrial projects, not to stores. The retail-specific change is the trading-hour relaxation: establishments with 10 or more staff may open 24×7 for three years from 5 June 2025. Tamil Nadu is not on the multi-brand retail consenting list.
Maharashtra
The 2025 policy runs for five years from notification (the Government Resolution is dated 31 December 2025). The SGST-based Investment Promotion Subsidy is for eligible MSMEs and Special LSI units on first sales within the state. Maharashtra has agreed to FDI in multi-brand retail.
Karnataka
The 2025-30 policy took effect on 8 February 2025 and runs five years. Large, mega and ultra-mega projects choose between a capital subsidy tiered by zone and a production-linked incentive on net sales turnover over 7 years. Karnataka has agreed to FDI in multi-brand retail.
Uttar Pradesh
Uttar Pradesh is the one state in the table with a dedicated warehousing policy. The 15% capital subsidy for warehouses, silos and cold chains is paid once, after start-up, and rises to a ₹10 crore cap in designated logistics zones. Manufacturers fall under the separate 2022 industrial policy.
Haryana
The 2019 policy lapsed on 8 March 2024 and was extended by the state cabinet in January 2025 until a new policy is notified, so its terms should be confirmed before any application. It is the only policy in the table that names retail units in its 24×7 provision. Haryana has agreed to FDI in multi-brand retail.
Where retail investment is concentrated
Retail leasing in the top seven cities reached a record of about 8.9 million sq ft in 2025. The source brochure does not name the cities or break the figure down by state.
What to check next
- Confirm the current policy text with the state nodal agency before modelling any incentive; Haryana’s policy is running on an extension and Maharashtra’s is newly notified.
- If the plan includes a warehouse or cold chain, compare the Uttar Pradesh and Haryana capital subsidies, both capped at ₹5 crore in the general case.
- Check whether the store state is on the multi-brand retail consenting list, and whether 24×7 trading is allowed for your establishment size.
- Treat SGST reimbursements as manufacturing incentives; confirm with the state whether a retail or trading entity is eligible at all.
- Cross-check state scheme status in the incentive tracker.