Government Incentives

Overview

The Government has been focused on boosting the economy by introducing various incentive schemes from time to time. These incentives provide various fiscal and non-fiscal benefits to the industry thereby promoting manufacturing, services, employment opportunities and infrastructure development of the economy. Typically, these schemes are focused on a particular sector or region and use varied thresholds to incentivize, such as investment, incremental production, employment generated, research and development, etc. Interestingly, these schemes also have the option of customised packages of incentives for large projects.

We at BDO India enable organisations to see businesses through a new lens and explore potential incentives.

Government Incentives

The Central as well as State Governments of India provide various incentives to the industry in the form of subsidies, exemptions, concessions, duty deferral under industry- or state-specific policies, foreign trade policy, etc. These incentives provide fiscal as well as non-fiscal benefits for eligible investments such as greenfield and brownfield projects, and research & development activities. Businesses can often avail of a combination of incentives extended by the Central and the State Governments.