Incentives
Incentive tracker
60 central schemes and state packages, each with the status recorded as of 1 October 2026. Later changes are listed under What changed.
| Scheme | What it offers | Status | Window | Source |
|---|---|---|---|---|
| 15% rate on IFSC income after the holiday Ministry of Finance | Proposed 15% tax on IFSC business income after the deduction period; not enacted | Proposed Proposed 1 Feb 2026; not in Finance Act 2026 | Budget 2026-27; Finance Act 2026 | |
| Biopharma SHAKTI | ₹10,000 crore over five years for biologics and biosimilars; new NIPERs; over 1,000 accredited clinical-trial sites | Proposed Budget 1 Feb 2026; guidelines awaited | Budget Speech 2026-27 | |
| Bulk Drug Parks Department of Pharmaceuticals | ₹3,000 crore; parks at Jambusar, Nakkapalli and Himachal Pradesh; grant 70% (90% in specified states), up to ₹1,000 crore a park | In force Extended to FY2026-27 on 23 Jun 2025 | To FY2026-27 | DoP Annual Report 2025-26 |
| Carbon capture, utilisation and storage programme | ₹20,000 crore over five years for CCUS in power, steel, cement, refineries and chemicals | Proposed Proposed 1 Feb 2026 | Budget Speech 2026-27 | |
| Container Manufacturing, CIE and Chemical Parks schemes | Container scheme ₹10,000 crore over five years; construction and infrastructure equipment scheme; three plug-and-play chemical parks | Proposed Announced 1 Feb 2026 | Budget Speech 2026-27 | |
| Electronics Component Manufacturing Scheme MeitY | Turnover-linked, capex or hybrid incentives over six years; outlay ₹22,919 crore, increase to ₹40,000 crore announced | Open Components closed; equipment to Apr 2027 | Supply-chain items and capital equipment to Apr 2027 | PIB, 26 Apr 2025 and 3 Feb 2026; Budget 2026-27 |
| Employment Linked Incentive (PM Viksit Bharat Rozgar Yojana) Ministry of Labour and Employment | Up to ₹3,000 a month per additional employee (pay up to ₹1 lakh) for two years; first-timers get one month's EPF wage up to ₹15,000 | Deadline Jobs created to 31 Jul 2027 | 1 Aug 2025 to 31 Jul 2027 | PIB, 18 Dec 2025 |
| Export Promotion Mission | ₹25,060 crore for FY2025-26 to FY2030-31 (Niryat Protsahan, Niryat Disha) | In force Approved Nov 2025; runs to FY2030-31 | FY2025-26 to FY2030-31 | PIB, 12 Nov 2025 |
| Fast-track unilateral APAs for IT services CBDT | Unilateral APAs for IT services to be concluded within two years, extendable by six months | Proposed Announced 1 Feb 2026 | Budget Speech 2026-27 | |
| GIFT City IFSC unit deduction (s.147) Ministry of Finance | 100% of eligible income for 20 consecutive years out of 25 (was 10 of 15); OBUs 20 years; IFSC units pay MAT at 9% | In force Enacted, Finance Act 2026 | From tax year 2026-27 | Finance Act 2026; Budget 2026-27 memorandum |
| Gujarat Electronics Component Manufacturing Policy 2025 Government of Gujarat | 100% top-up on central ECMS support, paid within 30 days of central release; turnover-linked incentives for six years | In force Top-up to central ECMS | ANI on Gujarat ECM Policy, 22 Jun 2025 | |
| IFSCA (Global In-House Centres) Regulations, 2025 IFSCA | Global in-house centres in GIFT IFSC serving group financial-services operations | In force Approved by IFSCA 22 Dec 2025 | IFSCA press release, 23 Dec 2025 | |
| Income-tax exemptions for electronics supply chains CBDT | Foreign suppliers of tooling to bonded contract manufacturers exempt to TY 2040-41; bonded-warehouse components exempt 1 Oct 2026–31 Mar 2041 | In force In force; to 31 Mar 2041 | 1 Oct 2026 to 31 Mar 2041 | Finance Act 2026; Taxation and Other Laws (Amendment) Act 2026 |
| India Semiconductor Mission 2.0 India Semiconductor Mission (MeitY) | 40% of eligible capex for silicon fabs; 35% compound fabs and advanced packaging; 25% legacy packaging; 30% equipment and component makers | Open Notified 31 Aug 2026; open for 3 years | 3 years from 31 Aug 2026 | PIB, 15 Jul 2026; ISM notification and ANI, 31 Aug 2026 |
| IndiaAI Mission MeitY | Outlay ₹10,372 crore; over 38,000 GPUs via AI compute portal for Indian start-ups, academia, researchers and government | Open GPUs offered via portal (Mar 2026) | PIB, 25 Mar 2026 | |
| Inter-state transmission charge waiver Ministry of Power | 100% for solar and wind commissioned by 30 Jun 2025, tapering 25% a year to Jun 2028; longer for BESS, green hydrogen, offshore wind | Deadline 50% if commissioned Jul 2026–Jun 2027 | Tapers to June 2028 | PIB, 16 Mar 2026 |
| Karnataka Industrial Policy 2025-30 Government of Karnataka | Capital subsidy 10–25% by zone, or 1.0–2.5% of net sales for seven years; stamp duty exemption for eligible projects | In force Five years from 8 Feb 2025 | Five years from 8 Feb 2025 | Grant Thornton on Karnataka Industrial Policy 2025-30 |
| Maharashtra GCC Policy 2025 Government of Maharashtra | Capital subsidy up to 20% or rent support 10–20%; payroll support up to ₹50,000 per employee a year; 75–100% stamp duty relief; 10-year lock-in | In force Guidelines notified Aug 2026; valid to FY2029-30 | To FY2029-30 | Maharashtra press note and Khaitan alert, Nov 2025; IANS, 20 Aug 2026 |
| Maharashtra Industry, Investment and Services Policy 2025 Government of Maharashtra | Capital subsidy up to lower of ₹25 crore or 20% of eligible investment; 100% gross SGST subsidy for MSMEs and Special LSI; stamp duty relief | In force In effect for five years from notification | Maharashtra Industry, Investment and Services Policy 2025 | |
| Manufacturing and Other Operations in Warehouse Regulations (s.65 Customs Act) CBIC | Import duty and GST deferred until domestic clearance; duty on inputs remitted on export; self-declaration and e-tracking | Open Open; exemptions to March 2041 | Customs Act 1962, s.65; Mumbai Customs MOOWR note; Budget 2026-27 | |
| Medical Device Parks Department of Pharmaceuticals | ₹400 crore; grant 70%/90%, up to ₹100 crore a park; 194 makers in UP, MP and TN parks | In force Budget 2026-27: ₹50 crore; extension sought | DoP Guidelines, Promotion of Medical Device Parks; DoP Annual Report 2025-26 | |
| National framework for GCCs in tier-2 cities | Guidance to states for GCCs in tier-2 cities, announced in Union Budget 2025-26 | Draft Draft stage, Jan 2026 | Outlook Business, 21 Jan 2026 | |
| Nuclear Energy Mission (small modular reactors) | ₹20,000 crore; at least five SMRs by 2033; 100 GW nuclear goal by 2047. FDI in atomic energy remains prohibited | Proposed Announced in Budget 2025-26 | PIB (DAE) backgrounder, 19 Dec 2025 | |
| Offshore fund manager safe harbour (s.9(12)) Ministry of Finance | India-based manager without business connection if residents hold up to 5%; 25-member, 10% and ₹100 crore corpus tests dropped | In force In force, Act 21 of 2026 | Taxation and Other Laws (Amendment) Act 2026 | |
| PLI for Advanced Chemistry Cell batteries Ministry of Heavy Industries | ₹18,100 crore for 50 GWh of cell capacity (10 GWh for grid storage); two-year gestation, five performance years | Approved applicants only 40 GWh awarded; 1 GWh built (Jan 2026) | PIB (MHI Year End Review), 13 Jan 2026 | |
| PLI for Automobile and Auto Components Ministry of Heavy Industries | ₹25,938 crore; 13–18% of incremental sales of EV and fuel-cell components and AAT vehicles; 8–13% other AAT components; 50% DVA | Approved applicants only Approved applicants only; to FY2027-28 | To FY2027-28 | PIB (MHI Year End Review), 13 Jan 2026 |
| PLI for bulk drugs Department of Pharmaceuticals | ₹6,940 crore; fermentation-based 20% then 15% and 5%; chemical synthesis 10% | Approved applicants only 48 approved; incentives end FY2028-29 | DoP Annual Report 2025-26 | |
| PLI for high-efficiency solar PV modules MNRE | ₹24,000 crore output-linked incentive; awards cover 48,337 MW of integrated module capacity | Closed Closed: all 48,337 MW awarded | PIB (MNRE), 29 Dec 2025 | |
| PLI for medical devices Department of Pharmaceuticals | ₹3,420 crore; 5% of incremental sales, capped ₹121 crore (Category A) or ₹40 crore (Category B) | Approved applicants only Selection done; incentives to FY2026-27 | DoP Annual Report 2025-26 | |
| PLI for pharmaceuticals Department of Pharmaceuticals | ₹15,000 crore; 10%, 8% and 6% for categories 1–2; 5%, 4% and 3% for category 3; ₹5,433 crore paid by Oct 2025 | Approved applicants only 55 selected; incentives end FY2027-28 | DoP Annual Report 2025-26 | |
| PLI for textiles (MMF apparel, MMF fabrics, technical textiles) Ministry of Textiles | Incentives on incremental turnover; minimum investment ₹150 crore (Part 1) or ₹50 crore (Part 2) | Closed Window ended 31 Mar 2026 | Aug 2025 to 31 Mar 2026 | PIB, 9 Oct 2025 and 2 Jan 2026 |
| PLI for the food processing industry Ministry of Food Processing Industries | ₹10,900 crore; ₹3,271.44 crore paid to Jun 2026; branding abroad: 50% of spend up to 3% of food sales or ₹50 crore a year | Approved applicants only Runs to FY2026-27; 163 applications | FY2021-22 to FY2026-27 | PIB, 30 Jul 2026 |
| PLI for white goods (AC and LED components) | ₹6,238 crore for AC and LED components; 85 companies after round 4 (Jan 2026) | Closed 4th-round window closed 14 Oct 2025 | PIB, 13 Nov 2025 | |
| PM E-DRIVE Ministry of Heavy Industries | ₹11,900 crore: demand incentives for e-2W, e-3W, e-trucks, e-ambulances; ₹4,391 crore e-buses; ₹2,000 crore charging | Open To 31 Mar 2028; claims by 31 Dec 2027 | To 31 Mar 2028 | Lok Sabha, 21 Jul 2026; PIB (MHI), 13 Jan 2026 |
| PM MITRA textile parks Ministry of Textiles | Seven integrated textile parks; scheme outlay ₹4,445 crore | In force Seven parks being set up | Invest India Textiles page (retrieved 1 Oct 2026) | |
| PM Surya Ghar: Muft Bijli Yojana MNRE | Outlay ₹75,021 crore for rooftop solar on 10 million homes; 5.16 million households by 12 Aug 2026 | Open Open; household target FY2026-27 | To FY2026-27 | PIB factsheet, Aug 2026 |
| PM Surya Sarovar Yojana MNRE | ₹5,070 crore for 5,000 MW of floating solar with at least two hours of co-located storage | In force Approved 31 July 2026 | Sanctions FY2026-27 to FY2030-31 | PIB factsheet, Aug 2026 |
| Production Linked Incentive schemes (14 sectors) Various ministries | Outlay ₹1.97 lakh crore; over ₹2.16 lakh crore invested and ₹20.41 lakh crore of production and sales by 31 Dec 2025 | Approved applicants only Approved applicants only | PIB, 27 Mar 2026 | |
| Promotion of Research and Innovation in Pharma MedTech (PRIP) Department of Pharmaceuticals | ₹5,000 crore; early stage up to ₹5 crore; later stage up to 35% of project cost or ₹100 crore, whichever is lower | Closed Call closed 19 Nov 2025; 710 applications | DoP Annual Report 2025-26 | |
| Rare Earth Corridors | Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu; operating details awaited | Proposed Announced in Budget 2026-27 | Budget Speech 2026-27 | |
| Remission of Duties and Taxes on Exported Products DGFT | Remission of duties and taxes on exported products at notified rates | Deadline RoDTEP notified to 31 Dec 2026 | To 31 Dec 2026 | DGFT Notification 41/2026-27, 30 Sep 2026 |
| Research, Development and Innovation Scheme | ₹1 lakh crore corpus over six years: low- or nil-interest long-term R&D finance via AIFs, DFIs and a Deep-Tech Fund of Funds | In force Approved Jul 2025; fund launched Nov 2025 | PM India, 1 Jul 2025; PIB, 4 Feb 2026 | |
| Revamped Pharmaceutical Technology Upgradation Assistance Scheme Department of Pharmaceuticals | Subsidy of 20%, 15% or 10% by turnover band, up to ₹2 crore a unit | Closed Period FY2024-25 to FY2025-26; 255 approved | DoP Annual Report 2025-26 | |
| Safe harbour for related-party data-centre services CBDT | 15% cost-plus safe harbour for related-party data-centre services; confirm notification before relying on it | Proposed Announced in Budget 2026-27; confirm notification | Budget 2026-27 | |
| Scheme to Promote Manufacturing of Electric Passenger Cars in India Ministry of Heavy Industries | e-4W CBUs at 15% duty for 5 years against ₹4,150 crore investment and local production within 3 years | Closed Closed Oct 2025; no applications received | PIB, SPMEPCI guidelines, Jun 2025; Lok Sabha, 21 Jul 2026 | |
| Semicon 2.0 chip-design support India Semiconductor Mission (MeitY) | For start-ups and MSMEs: 50% of project cost or ₹15 crore, whichever is lower, plus equity co-investment; Indian-owned and controlled only | Open Notified 31 Aug 2026; open for 3 years | 3 years from 31 Aug 2026 | ISM notification, 31 Aug 2026; ANI |
| SEZ one-time domestic sales facility | One-time facility for eligible SEZ manufacturers to sell into the DTA at concessional duty, capped at a prescribed share of exports | Proposed Announced in Budget, 1 Feb 2026 | Budget 2026-27 | |
| SIGHT incentives, National Green Hydrogen Mission MNRE | Mission outlay ₹19,744 crore; incentives for 450,000 t/yr of green hydrogen; green ammonia prices discovered for 724,000 t/yr | Approved applicants only Awarded (PIB, Dec 2025) | PIB (MNRE), 29 Dec 2025 | |
| Sintered Rare Earth Permanent Magnets scheme | ₹7,280 crore: sales-linked incentives ₹6,450 crore and ₹750 crore capital subsidy for 6,000 tonnes a year; up to five makers | Closed Bids closed 12 Aug 2026; 20 received | PIB, 26 Nov 2025; Fiinews, 15 Aug 2026 | |
| Software Technology Parks scheme STPI | Customs duty exemption on imports; domestic sales up to 50% of exports; needs IEC, export contract and export obligation agreement | In force Listed by Invest India; run by STPI | STPI scheme FAQ (Invest India, retrieved 1 Oct 2026) | |
| Start-up tax holiday (s.140, Income-tax Act 2025) CBDT | 100% of profits for 3 consecutive years out of 10; turnover up to ₹300 crore; needs an Inter-Ministerial Board certificate | Open For start-ups incorporated by 31 Mar 2030 | Incorporation before 1 Apr 2030 | Income-tax Act 2025, s.140; Finance Act 2026 |
| Startup India Fund of Funds 2.0 | ₹10,000 crore corpus, approved 14 Feb 2026 | In force Operational guidelines issued Apr 2026 | PM India, 14 Feb 2026; PIB via IBEF, 27 Apr 2026 | |
| Strengthening of the Medical Device Industry Department of Pharmaceuticals | ₹500 crore: components, common facilities and labs, clinical studies, skills and promotion | In force Launched 8 Nov 2024; 10 component projects approved | DoP Annual Report 2025-26 | |
| Tamil Nadu Industrial Policy 2021 Government of Tamil Nadu | 100% SGST reimbursement for 15 years or capital subsidy up to 25% over 15 years; training subsidy; SIPCOT land at 10–50% concession | In force Validity extended | Tamil Nadu Single Window Portal (Industrial Policy 2021) | |
| Tamil Nadu Special Scheme to promote GCCs Government of Tamil Nadu | Payroll subsidy 30%, 20%, 10% over three years on jobs paying ₹1 lakh a month+, TN-domiciled; Forbes 2000/Fortune 1000 parent; 200 jobs | Deadline Runs 1 Apr 2024 to 31 Mar 2027 for up to 50 GCCs | 1 Apr 2024 to 31 Mar 2027 | Tamil Nadu G.O.(Ms.) No. 34, 12 Mar 2024 |
| Tax exemption for foreign cloud services using Indian data centres CBDT | Notified foreign company's income from Indian data-centre services exempt; sells to Indian users only via an Indian reseller; may not own the data centre | In force Enacted; to 31 Mar 2047 | To tax year ending 31 Mar 2047 | Finance Act 2026 |
| Transfer-pricing safe harbour for IT services CBDT | Single 15.5% margin on cost for software, ITeS, KPO and contract R&D; threshold ₹2,000 crore; automated approval; five-year option | In force Rules notified 2026 | Budget 2026-27; PIB, 1 Feb 2026; Income-tax Rules 2026 | |
| UP Industrial Investment and Employment Promotion Policy 2022 Government of Uttar Pradesh | Capital subsidy 10–30% over 10–20 years, or 100% net SGST for 6–16 years; stamp duty 50–100%; 80% of investment after effective date | In force In force for 5 years | UP Industrial Investment and Employment Promotion Policy 2022 | |
| Viability gap funding for battery energy storage Ministry of Power | First scheme ₹3,760 crore for 13,220 MWh; second scheme 30 GWh at up to ₹18 lakh per MWh from ₹5,400 crore | In force Second scheme approved June 2025 | PIB (MNRE), 22 Jun 2025; PIB (MoP), 3 Feb 2026 | |
| Viability gap funding for offshore wind MNRE | ₹7,453 crore: ₹6,853 crore VGF for 1 GW off Gujarat and Tamil Nadu and ₹600 crore for two ports | Closed Both tenders cancelled Aug 2025 (no bids) | PIB (MNRE); IMPRI, 30 Aug 2026 |
Statuses change. Check the scheme guidelines and the administering ministry before relying on any incentive.