Thought Leadership

Towards Viksit Bharat: Mapping central and state incentives across India

15 Dec 20251 min read
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This compendium provides a comprehensive, pan-India perspective on incentives that drive investment, manufacturing, and exports. It brings together the full spectrum of central and state-level incentive schemes available to businesses across India. It serves as a practical guide for corporates, investors, GCCs, MSMEs, and policymakers seeking to understand and leverage India’s evolving incentive architecture.
Contents

What the compendium covers

  • Incentives for exporters: A detailed mapping of all key FTP-linked schemes, such as RoDTEP, advance authorisation, DFIA, EPCG, duty drawback, SEZ incentives, EOUs, and new-age enablers, such as MOOWR, MAI, MDA, IES, and ECGC support.
  • Production-linked incentive (PLI) schemes: A sector-wise snapshot of 14 PLI schemes, including IT hardware, electronics, white goods, specialty steel, food processing, ACC batteries, pharmaceuticals, medical devices, solar PV, automobiles and components, drones, textiles, APIs/KSMs, and telecom products. Details include tenure, incentive rates, thresholds, and sector-specific design features.
  • Other key central incentives: Includes the coverage of central programmes, such as the National ESS Policy, VGF scheme, National Electronics Policy, PMP, National Logistics Policy, SPECS, and EMC 2.0. Highlights both financial and regulatory incentives, including R&D support, capital subsidies, logistics reforms, cluster development, and import duty structuring.
  • State government incentive policies: A state-wise summary of tenure, capex/opex support, SGST reimbursements, stamp duty waivers, payroll incentives, power tariff subsidies, interest subsidies, land benefits, and more available under various Industrial policies, IT/ITeS and GCC policies, EV, renewable energy, clean mobility policies, logistics and sector-specific manufacturing schemes, textiles, electronics, biotech, aerospace, defence, start-up support, etc.
  • Incentives for MSMEs: A consolidated view of MSME-specific benefits across the central and state schemes, including capital subsidies, interest support, reimbursement programmes, simplified compliance, and preferential procurement advantages.

Why this compendium matters

  • Single-window view of India’s fragmented but high-impact incentive ecosystem.
  • Helps businesses compare states, evaluate location strategies, and optimise planning.
  • Supports GCCs, manufacturers, exporters, and investors with reliable, updated, and actionable details.
  • Aligns with India’s broader vision of Viksit Bharat through competitiveness, employment, and export growth.
Towards Viksit Bharat
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Towards Viksit Bharat

Mapping central and state incentives across India

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