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Technology & SaaS

Central incentives for technology

AI compute, R&D finance and chip-design support are the main central levers; export-unit schemes, a start-up tax holiday and hiring support also apply. Terms are summarised; notified guidelines govern eligibility and payment.

38,000+GPUs onboarded by the IndiaAI Mission (outlay ₹10,372 crore)
₹1 lakh croreRDI Scheme for long-term private R&D finance at low or nil interest
31 Aug 2026Semicon 2.0 chip-design support notified; open for three years
₹3,000/monthEmployment Linked Incentive per additional employee, for two years
Facts as of 1 October 20267 sources citedHow we keep this current

Status key

Status is as of 1 October 2026. Terms are summarised; notified guidelines govern eligibility and payment. The brochure uses four labels:

  • Open: available or accepting applications.
  • Closing: a stated window or period ends on the date shown.
  • Closed: no new applicants.
  • Announced: announced or approved; check operating guidelines.

AI compute, R&D finance, chip design and start-up funds

SchemeWhat the investor getsWho qualifiesStatus
IndiaAI Mission (MeitY), outlay ₹10,372 croreAccess at affordable rates to more than 38,000 GPUs through the AI compute portal, plus project funding; 190 projects approved by March 2026.Indian start-ups, academia, researchers and government entitiesGPUs offered via portal (Mar 2026)
Research Development and Innovation (RDI) Scheme, ₹1 lakh croreLong-term financing or refinancing at low or nil interest for private R&D, through second-level fund managers such as AIFs, DFIs and NBFCs; focus on TRL 4 and above.Private-sector companies in sunrise and strategic sectorsApproved Jul 2025; fund launched Nov 2025
Semicon 2.0: chip-design support (programme outlay ₹1.275 lakh crore)Strategic and commercial design support; for commercial design, start-ups and MSMEs get milestone-linked seed funding of 50% of project cost or ₹15 crore, whichever is lower, and VC- or PE-backed firms equity co-investment.Companies incorporated and headquartered in India, owned and controlled by Indian citizens (or OCIs, for commercial design)Notified 31 Aug 2026; open for 3 years
Design Linked Incentive (DLI) SchemeProduct design: up to 50% of eligible cost, capped at ₹15 crore; deployment: 6% falling to 4% of net sales over five years, capped at ₹30 crore; access to EDA tools and IP cores.Domestic companies, start-ups and MSMEs designing chips, IP cores and SoCs24 projects approved by Mar 2026
Startup India Fund of Funds 2.0₹10,000 crore corpus to mobilise venture capital for deep tech, tech-driven innovative manufacturing and early-growth start-ups.Start-ups, through venture capital fundsOperational guidelines issued Apr 2026
Fund of Funds for Startups (FFS), SISFS and Credit Guarantee Scheme for StartupsFFS corpus of ₹10,000 crore committed; SISFS seed funding of about ₹592 crore approved; about ₹925 crore of start-up loans guaranteed (to 31 January 2026).DPIIT-recognised start-ups, via funds, incubators or lendersFFS committed; data to 31 Jan 2026

Note: The IndiaAI compute portal and Semicon 2.0 design support are directed at Indian entities. A foreign-owned Indian subsidiary is not “owned and controlled by Indian citizens”, so Semicon 2.0 design support is not available to it directly; the brochure notes that global firms can join as partners.

Export-unit schemes, start-up tax holiday and hiring support

SchemeWhat the investor getsWho qualifiesStatus
Software Technology Parks (STP) scheme, STPIExport-unit status with STPI approvals, customs duty exemption on imports, export certification and domestic sales up to 50% of exports.Units exporting software or IT-enabled services over data linksListed by Invest India; run by STPI
Start-up tax holiday (s.140, Income-tax Act 2025)Deduction of 100% of profits for any three consecutive tax years out of the first ten.Start-ups incorporated before 1 April 2030, turnover up to ₹300 crore (was ₹100 crore), with an Inter-Ministerial Board certificateFor start-ups incorporated by 31 Mar 2030
Employment Linked Incentive (PM-VBRY)Employer support of up to ₹3,000 a month per additional employee, for two years.Employers adding jobs between 1 August 2025 and 31 July 2027Jobs created to 31 Jul 2027

Tax measures that work like incentives

Two measures in the Finance Act 2026 and the Income-tax Rules 2026 are covered on the tax and zones page rather than here:

  • The exemption to the tax year ending 31 March 2047 for a notified foreign cloud company’s income from procuring services of a specified Indian data centre.
  • The 15.5% transfer-pricing safe harbour for software, ITeS, KPO and contract R&D, with the eligibility threshold raised to ₹2,000 crore from ₹300 crore.

How to apply

The set-up roadmap places the applications in sequence: DPIIT start-up recognition and the Inter-Ministerial Board certificate for the s.140 holiday; IndiaAI compute through the AI compute portal (MeitY); chip-design support through the India Semiconductor Mission, which requires Indian ownership; and ELI claims through the Ministry of Labour and Employment for jobs created between 1 August 2025 and 31 July 2027. The cross-sector incentive tracker lists the same schemes with their current status.

What to check next

  • Confirm the operating guidelines of any scheme marked “announced” before building it into a business case.
  • Test the ownership condition for Semicon 2.0 and DLI; a foreign-controlled subsidiary needs an Indian partner structure.
  • For the s.140 holiday, plan the Inter-Ministerial Board application alongside DPIIT recognition and check the ₹300 crore turnover limit.
  • Count the jobs you expect to add before 31 July 2027 to size the ELI claim.
  • Check whether an STP unit’s 50% domestic-sales ceiling fits your India revenue plan.

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