Indian State Governments offer varied incentives under their respective state industrial development corporation policies to promote the set-up of new manufacturing units in the state. Such incentives are in the form of capital subsidies, interest subsidies, subsidized electricity tariffs, and more. The purpose of such incentive schemes is to attract investment thereby enabling infrastructure development, generating employment, developing focus sectors, and largely facilitating the overall economic development of the state.
To enable the availability of a quick summary of such general incentives offered by various Indian states, Nexdigm is releasing a series of documents focusing on providing a brief overview of such incentives offered by respective State Governments in India. This document covers information about incentives offered by Uttar Pradesh under the 'Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022'.
Key Statistics | Uttar Pradesh
Policy Overview
Uttar Pradesh is the fourth largest state in India by land area and contributes a substantial share to the nation's economy, approximately 8% of the total GDP. Recognized as an 'Achiever' in the 2020 Business Reforms Action Plan (BRAP) ranking, the state is striving to position itself as a competitive destination on both national and international fronts.
The primary objectives include job creation and fostering sustainable, inclusive, and balanced economic growth. In line with these aspirations, the State Government has introduced the 'Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022,' effective for a period of five years.
Nexdigm Ratings and Observations
- The Investment Promotion Subsidy is one of the major incentives
in the policy wherein three possible options are outlined for
availing the subsidy. Companies have the choice of selecting any
one from three types of subsidies:
- Capital Subsidy with Boosters
- Net SGST Reimbursement
- PLI Top-up Subsidy
- This policy covers incentives applicable for Large, Mega, Super Mega and Ultra Mega projects. The State Government has separately released the 'Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy 2022' detailing the incentives for Medium, Small, and Micro Enterprises (MSMEs). The same is summarized in a separate table under the section 'Incentives for MSMEs under the Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy 2022'.
Policy Highlights
Industry Classification
Manufacturing enterprises, for the purpose of the scheme, are classified under different categories based on the quantum of investment and employment, which has been briefly tabulated below:
Region Classification
Regions in Uttar Pradesh, for the purpose of the scheme, are classified under different categories based on the development stage of such regions, thereby promoting investments with relatively higher incentives in developing or underdeveloped regions for the balanced growth of all regions of Rajasthan. The classification is tabulated briefly below:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
