States compete with capital subsidies, SGST refunds and stamp duty waivers
States set incentive amounts by zone and project size. Figures are taken from the policy text or a published summary; confirm current terms with the state agency before committing.
| State | Policy and validity | Headline incentives |
|---|---|---|
| Tamil Nadu | Tamil Nadu Industrial Policy 2021 (validity extended); Semiconductor and Advanced Electronics Policy 2024 | Choice of investment promotion subsidies, including 100% SGST reimbursement on in-state sales for 15 years or a capital subsidy of up to 25% paid over up to 15 years. Training subsidy of ₹4,000 a worker a month for six months (₹6,000 for women and specified groups); SIPCOT land at a 10% to 50% concession. |
| Gujarat | Gujarat Electronics Component Manufacturing Policy 2025, a top-up to the central ECMS; Gujarat Electronics Policy 2022-28 | Projects approved under the central ECMS receive a 100% top-up on central support, disbursed within 30 days of the central release; turnover-linked incentives run for six years. |
| Maharashtra | Maharashtra Industry, Investment and Services Policy 2025: in effect for five years from notification | Investment Promotion Subsidy on 100% of gross SGST on first sales within the state for eligible MSMEs and Special LSI units; six Ultra Mega Industrial Parks of at least 5,000 acres each; Invest Maharashtra budget of ₹3,000 crore. |
| Karnataka | Karnataka Industrial Policy 2025-30: five years from 8 February 2025 | Large, mega and ultra-mega projects: capital subsidy of 10% to 25% of fixed capital investment by zone, or a production-linked incentive of 1.0% to 2.5% of net sales turnover for 7 years; stamp duty exemption for eligible projects. |
| Uttar Pradesh | Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 (in force for 5 years) | Choice of capital subsidy of 10% to 30% of eligible capital investment, by region and project size, paid in instalments over 10 to 20 years, or reimbursement of 100% of net SGST deposited, within the policy’s limits; stamp duty exemption of 50% to 100% by region. |
| Odisha | Industrial Policy Resolution 2022; Semicon Fabless Policy 2023 | 140 industrial estates of about 13,000 acres. Info Valley, Bhubaneswar will host India’s first commercial compound-semiconductor fab and a glass-substrate packaging unit, both approved in August 2025. |
Policy names are as listed by Invest India and the state agencies (retrieved 1 October 2026). Amounts depend on zone, project category and eligibility conditions in each policy.
Sources: Tamil Nadu Single Window Portal (Industrial Policy 2021); ANI on Gujarat ECM Policy, 22 Jun 2025; UP IIEPP 2022; Maharashtra IISP 2025; Grant Thornton on Karnataka IP 2025-30; Invest India state pages (retrieved 1 Oct 2026); PIB, 12 Aug 2025.
State notes
Tamil Nadu
Tamil Nadu offers a choice between an SGST-linked subsidy and a capital subsidy: 100% SGST reimbursement on in-state sales for 15 years, or a capital subsidy of up to 25% paid over up to 15 years. The training subsidy is ₹4,000 a worker a month for six months, rising to ₹6,000 for women and specified groups. SIPCOT industrial land is offered at a 10% to 50% concession. The Semiconductor and Advanced Electronics Policy 2024 sits alongside the Industrial Policy 2021, whose validity has been extended. Tamil Nadu is also one of the four states named for the Rare Earth Corridors announced in Budget 2026-27.
Gujarat
Gujarat’s Electronics Component Manufacturing Policy 2025 is designed as a top-up to the central ECMS: projects approved under ECMS receive a 100% top-up on central support, disbursed within 30 days of the central release, with turnover-linked incentives running for six years. Because the top-up follows central disbursal, it is paid annually in proportion to what the centre pays; ECMS itself pays after claim verification over FY2025-26 to FY2031-32. The Gujarat Electronics Policy 2022-28 covers the wider electronics sector.
Maharashtra
The Industry, Investment and Services Policy 2025 (GR of 31 December 2025) is in effect for five years from notification. The Investment Promotion Subsidy is on 100% of gross SGST on first sales within the state for eligible MSMEs and Special LSI units. The policy provides for six Ultra Mega Industrial Parks of at least 5,000 acres each and an Invest Maharashtra budget of ₹3,000 crore. MIDC allots industrial land.
Karnataka
The Industrial Policy 2025-30 runs for five years from 8 February 2025. Large, mega and ultra-mega projects choose between a capital subsidy of 10% to 25% of fixed capital investment by zone and a production-linked incentive of 1.0% to 2.5% of net sales turnover for seven years, with stamp duty exemption for eligible projects.
Uttar Pradesh
The Industrial Investment & Employment Promotion Policy 2022 is in force for five years. Investors choose between a capital subsidy of 10% to 30% of eligible capital investment, by region and project size, paid in instalments over 10 to 20 years, and reimbursement of 100% of net SGST deposited, within the policy’s limits. Stamp duty exemption is 50% to 100% by region. Two eligibility rules matter for timing: at least 80% of capital investment must be made after the policy’s effective date to count, and phased projects must apply before the first phase starts commercial operations. YEIDA, near Jewar airport, hosts the Foxconn–HCL semiconductor unit.
Odisha
The Industrial Policy Resolution 2022 and the Semicon Fabless Policy 2023 apply. Odisha has 140 industrial estates of about 13,000 acres. Info Valley, Bhubaneswar will host India’s first commercial compound-semiconductor fab (Clas-SiC Wafer Fab with SiCSem) and a glass-substrate packaging unit, both approved in August 2025. Odisha is also named for the Rare Earth Corridors.
Other locations named in the sources
- NICDP industrial nodes: 12 greenfield nodes in 10 states along six corridors, approved August 2024 and planned as plug-and-play sites.
- PM MITRA parks: seven integrated textile parks being set up (scheme outlay ₹4,445 crore).
- Chemical parks: three plug-and-play parks to be selected through a challenge route (Budget 2026-27).
- Legacy clusters: 200 industrial clusters selected for upgrades (Budget 2026-27).
- Rare Earth Corridors: Odisha, Kerala, Andhra Pradesh and Tamil Nadu (Budget 2026-27).
- Andhra Pradesh: hosts the APACT–ASIP semiconductor unit approved in August 2025.
- ECMS projects: 46 projects in 11 states by February 2026; the third tranche covered eight states.
The master state table for all sectors is under where FDI goes, and the generic state incentive guide under state incentives.
Check: The choice between a capital subsidy and an SGST refund changes cash flow materially: SGST refunds depend on in-state sales volumes, capital subsidies on verified investment and instalment schedules. Compare on timing, not just headline percentage.
What to check next
- Confirm the zone and project category your site falls in; every amount above depends on both.
- Check investment-date rules before spending: Uttar Pradesh counts only capital invested after the policy’s effective date (at least 80%) and requires phased projects to apply before the first phase starts commercial operations.
- For an ECMS project, weigh Gujarat’s 100% top-up against the fact that it is paid in proportion to central disbursal.
- Compare an SGST reimbursement against a capital subsidy on your expected in-state sales mix.
- Confirm current policy terms and validity with the state investment agency; several policies run for fixed periods.