Forex

Indian taxation has not provided any direct tax incentives for the industries which are in
foreign investment sector or involved in export goods from India, However,
there are incentives available to Indian companies with some share of foreign ownership.
Tax and non-tax incentives may be granted to businesses that will increase Indian exports.
For example:

1. Tax depreciation allowances and investment allowances for
various businesses and tax holidays for projects undertaken in
specified underdeveloped areas
2. Tax deductions during the first 10 years of operation for new
industrial undertakings established anywhere in India. These
deductions apply to the hotel and shipping industries
3. Under certain conditions, 100 percent export-oriented projects
are exempt from taxation
4. Soft loans and concessional credits are available to specified
industries.
5. Five-year tax holiday for industrial undertakings in free
trade and export processing zones. Exemption from licensing
regulations, excise taxes, customs duties, and sales tax are
also available to businesses operating in these areas
6. Businesses that manufacture and process goods for export are
eligible for customs and excise duty drawbacks. These
drawback schemes also apply to raw materials.

Some non-tax incentives are offered by the state governments. Examples of these include the availability of land on concessional terms, facilities for business use, and water and power at reduced rates