7 July 2017
INDIA: Raft of Incentives Announced for New Investment Projects in Uttar Pradesh
A raft of new incentives are on offer for prospective investment projects in India’s northern Uttar Pradesh state. While the incentives on offer will be extended to all industrial sectors, the state government has outlined a number of promoted areas, including Information Technology (IT) and IT-enabled Services (ITES); electronics manufacturing; agro-food processing industries; dairy; clean energy; handloom and textiles; and tourism.
The key incentives of potential interest for overseas investors are:
- For a period of five years, 90% of Goods and Services Tax (GST) paid by small enterprises and 60% of the levy paid by medium and large enterprises will be reimbursed by the state government.
- 50% of social security contributions made by employers will be reimbursed by the state government for enterprises employing 100 or more new unskilled workers. An additional 10% of social security contributions will be reimbursed for businesses employing at least 200 new workers, both skilled and unskilled.
- Electricity duty will be exempted for 10 years for all new industries set up in the state.
- Stamp duty exemptions of 100% for new enterprises set up in the state’s less-developed eastern Bundelkhand and Purvanchal regions; 75% for those established in the western Madhyanchal and Pashimanchal regions, and 50% for businesses set up in the state’s more developed Gautam Budh Nagar and Ghaziabad districts, which are part of the National Capital Region of India.
The incentives were announced as part of the state government’s new Industrial Investment and Employment Promotion Policy 2017 unveiled on 4 July and its “Make in UP” campaign, which is being promoted to turn the state into a manufacturing hub in line with the federal government’s “Make in India” initiative.