Invest in India
Subsidies, incentives and policy support for foreign investors
Central schemes combined with state incentives, designed to reduce capital risk, improve project viability and deliver long-term returns for investors setting up in India.
- 4 to 20%PLI on incremental revenue
- Up to 50%capital subsidy, semiconductors
- 3 to 7%interest subsidy on project loans
- 6priority sectors with mega incentives in 2026
Key incentive categories
Production linked incentives
Direct financial incentives on incremental sales and production across electronics, pharma, automobiles, EVs and semiconductors. Up to 4 to 20% of incremental revenue.
Capital subsidies
Upfront subsidy on plant and machinery, typically 10 to 30% depending on sector, higher for backward regions and priority industries.
Tax and SGST benefits
SGST reimbursement by state governments, income tax benefits in select sectors, and customs duty exemptions for specific industries and imported machinery.
Interest subsidy
3 to 7% on term loans, directly reducing project financing cost for capital-intensive manufacturing.
Land and infrastructure
Land at subsidised rates in plug-and-play industrial parks with ready infrastructure across electronics, textiles and food processing.
R&D and innovation grants
Grants for emerging sectors including aerospace, defence, green hydrogen, AI and semiconductors.
Sustainability incentives
Renewable energy adoption, energy-efficient manufacturing and carbon credit generation, aligned with India's net-zero targets.
Sector-specific mega incentives
Special packages for defence manufacturing, semiconductor fabrication, the EV ecosystem and electronics, well above standard policy limits.
Best sectors for investment, 2026 outlook
Electric vehicles and clean mobility
The strongest policy push plus demand creation. PLI up to about 18%, state subsidies and SGST, consumer demand incentives.
Semiconductors and electronics
A strategic national priority. Up to 50% capital subsidy, electronics PLI of 4 to 6%, design-linked incentives.
Pharmaceuticals and life sciences
Established global leadership. PLI of 10 to 20%, bulk drug park incentives, GMP subsidies.
Defence and aerospace
Import substitution plus assured government procurement. R&D grants up to ₹50 crore, preferential procurement, offset opportunities.
Data centres and digital infrastructure
Explosive data consumption and the Digital India push. Capital subsidy of 20 to 30%, power and land incentives, infrastructure status.
Renewable energy and green hydrogen
Net-zero commitments driving long-term investment. Capital subsidies, viability gap funding, the green hydrogen mission.
India is not offering generic subsidies. It is offering sector-specific, performance-linked and investment-driven incentives built to reduce capital risk and improve project viability.
Planning to invest in India?
Unlock the right combination of central and state incentives for your project.