Eligibility criteria
Seven factors decide your incentive package
You can draw industrial subsidies from both the Government of India and the state you build in, whether you are setting up a new unit or expanding one. Eligibility and quantum depend on seven factors.
Industrial category and governing ministry
The products you manufacture determine which ministry governs your eligibility, and each ministry runs its own incentive schemes.
Example. Defence and aerospace products fall under the Ministry of Defence, qualifying for the Make in India R&D grant scheme, capped at a project cost of ₹50 crore. Pharmaceutical products fall under the Ministry of Pharmaceuticals, which offers a 10% capital subsidy, capped at a ₹10 crore project cost, for upgrading facilities to WHO GMP compliance.
Location of your unit
Every state classifies locations into Zones A, B, C and D, from highly developed urban areas to underdeveloped regions. Incentives scale up as the development level goes down.
Example. Maharashtra offers up to 100% capital subsidy for food-processing units in Zone D and D+, compared with 5% in Zone A.
Priority sector status
Products on the central and state priority lists, currently including semiconductors, electric vehicles, defence technologies, electronics and mobile phones, access research grants, capital subsidy and production linked incentives.
Example. Samsung India received its first PLI tranche for manufacturing mobile phones in India, worth roughly ₹500 to 600 crore.
Quantum of investment
Projects are classified as large, mega or ultra mega based on investment size, with thresholds set independently by each state.
Example. Rajasthan classifies any investment above ₹50 crore as a large project. Negotiating a special package requires investment above ₹500 crore.
Employment generation
Every government weighs the number of jobs created when it decides your subsidy and incentive quantum.
Example. Haryana provides an additional incentive booster for manufacturing units that create jobs above a prescribed threshold.
Environmental impact and carbon credits
Carbon-positive projects can register with verifiers such as Gold Standard or Verra and trade credits domestically, supporting India's net-zero target.
Example. Under current Government of India norms, no entity may export or sell carbon credits outside India to meet its own targets. The India Carbon Market has been notified to create a domestic market.
Import substitution and Make in India alignment
Products that substitute imports and advance Make in India access priority-sector schemes including PLI and sector-specific incentives.
Example. MEITY offers specific support for semiconductor design, development and manufacturing in India.
These factors interact. A project can qualify under several at once, and the right combination often decides whether you get a standard subsidy or a custom-negotiated package. For projects of ₹100 crore and above, see the customised incentive package.
Not sure which factors apply to your project?
We will assess your eligibility and calculate your exact subsidy benefit.