Every business entering India must examine the tax incentives that may be offered in its specific industry. Incentives are offered with respect to a range of direct and indirect taxes.

      Some significant examples of the incentives offered by the Central Government are a tax holiday for 100% of the profits for 5 to 10 years for several infrastructural projects, Hardware and Software Technology Parks and Free Trade Zones and Special Economic Zones. Additionally, the import of capital goods and raw materials may receive an exemption from custom duties, and be given the right to retain 100% of foreign exchange receipts in the foreign currency.

      State level incentives include rebates on the cost of land, rebate on the stamp duties applicable on the sale or lease of land, employment subsidies and reduction on power tariffs.