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Manufacturing has emerged as one of the high growth sectors in India targeting global markets and are becoming formidable global competitors. To promote India as manufacturing hub, Central and State/Union Territories Governments provides various incentives, subsidies and grants to set up manufacturing facility in India. In addition, there are certain incentives for services and other sectors too.

The Government of India provides sector specific subsidies for promoting manufacturing. Further, Package Scheme of Incentives (PIS) is a policy made by every individual state to promote industrial development, employment, investments, inventions and growth. A PIS differs from state to state and is governed by the Directorate of Industrial Policy and Promotions. The development of every state very much depends upon their state policy and also their ease of doing business (EoDB) ranking. Generally, state policies are for the period of 5 years.

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