State policies compared
States offer capital and opex subsidies, EPF refunds and stamp duty waivers. Amounts are ceilings; eligibility, zones and disbursal schedules are set by each policy.
| State | Policy and validity | Headline incentives |
|---|---|---|
| Tamil Nadu | Industrial Policy 2021: incentives for R&D projects (Guidance Tamil Nadu) | For R&D projects with at least ₹50 crore in eligible fixed assets, 50 jobs and DSIR registration: 50% reimbursement of land cost for up to 20 acres; R&D training support of ₹10,000 per person per month for 12 months; 50% of IP-creation costs up to ₹1 crore (₹5 crore for standalone R&D assets). |
| Maharashtra | IT/ITeS Policy 2023, effective 27 June 2023 for five years or until replaced | Covers IT, ITeS, AVGC, data centres and emerging technology: stamp duty exemption of 100%, 75% or 50% by zone and park type; electricity duty exemption; power at industrial tariff; property tax at residential rates; MSME patent support of 50%, up to ₹5 lakh (Indian) or ₹10 lakh (international). |
| Uttar Pradesh | IT & ITeS Policy 2022, five years from notification or until replaced | Capital subsidy of 10% of fixed capital (minimum ₹5 crore), up to ₹50 crore, over five years; 10% of operating costs (lease, bandwidth, UP-based cloud) for five years, up to ₹20 crore a year; 7% interest subsidy up to ₹1 crore a year; 100% stamp duty exemption; EPF reimbursement up to ₹1 crore a year, only for UP-domicile women, SC/ST, transgender and Divyangjan staff. |
| Gujarat | IT/ITeS Policy 2022–27 | For projects with gross fixed capital investment below ₹250 crore: capex support of 25% up to ₹50 crore and opex support of 15% up to ₹20 crore; mega projects up to ₹200 crore (capex) and ₹40 crore (opex); employer EPF contribution reimbursed at 100% for women and 75% for men. |
| Andhra Pradesh | IT & GCC Policy (4.0) 2024–2029, G.O.Ms.No.9 of 12 December 2024; land incentive G.O.Ms.No.32 of 16 August 2025 | Land at a nominal price for IT/ITeS firms and GCCs on Fortune or Forbes lists or with USD 1 bn of market capitalisation or annual revenue, and for GCC and IT park developers, subject to performance conditions; IT/ITeS firms must create at least 3,000 jobs within three years and 500 jobs per acre. |
Other states, including Karnataka and Telangana, also offer technology incentives that are not summarised in the source.
State notes
- Tamil Nadu targets R&D projects rather than IT services as such. The thresholds are cumulative: at least ₹50 crore in eligible fixed assets, 50 jobs and DSIR registration.
- Maharashtra is the one policy in the table that names data centres expressly. The FDI page notes that state IT policies, such as Maharashtra’s 2023 policy, cover data centres. The AWS Mumbai region MoU with the Maharashtra government is a public example; see recent investments.
- Uttar Pradesh pays its 10% capital subsidy in annual instalments over five years after commercial operations begin, which the set-up roadmap uses as the example of how state payments are timed. The EPF reimbursement is limited to specified groups of UP-domicile staff.
- Gujarat sets the capex and opex ceilings by project size, with higher ceilings for mega projects, and differentiates EPF reimbursement by gender.
- Andhra Pradesh offers land at a nominal price only to large, listed or high-revenue firms and to park developers, with job-creation conditions. Google’s Visakhapatnam campus sits in this state. Its policy also covers GCCs; see GCC locations.
Where the named investment is going
- Maharashtra: AWS Mumbai region (USD 8.3 bn MoU, 22 Jan 2025).
- Andhra Pradesh: Google AI hub and gigawatt-scale data-centre campus in Visakhapatnam (USD 15 bn over five years, Oct 2025).
- IT/ITeS SEZs and STPI centres operate across states; the STP and SEZ routes are described under regulators and registrations.
What to check next
- Register under the state IT policy before committing capital; the roadmap places this at step 7, after the entity and registrations exist.
- Read the policy’s zone map; Maharashtra’s stamp duty exemption and Uttar Pradesh’s and Gujarat’s ceilings depend on location and project size.
- Model the disbursal schedule, not only the ceiling: Uttar Pradesh pays over five years after commercial operations begin.
- For Andhra Pradesh land, test the Fortune or Forbes listing, the USD 1 bn threshold and the 3,000-job and 500-jobs-per-acre conditions.
- Ask Karnataka and Telangana directly; their policies are not summarised in the source.