Tax Incentives and Production-Linked Incentives (PLI) at DPIA

Maximize Your Business Profits with India’s Most Competitive Tax Incentives

India’s government has introduced a series of pro-business tax incentives and policies aimed at attracting global investments and fostering industrial growth. At Dighi Port Industrial Area (DPIA), businesses can leverage these benefits to significantly reduce operational costs and accelerate profitability.

From corporate tax reductions to customs exemptions, and from sector-specific incentives to the flagship Production-Linked Incentive (PLI) Scheme, DPIA offers an unbeatable financial environment for domestic and international companies.

Key Tax Incentives Available at DPIA

Corporate Tax Benefits

Reduced corporate tax rates for new manufacturing companies:

  • 15% corporate tax rate (plus applicable surcharges) for new domestic manufacturing firms incorporated after October 1, 2019, and commencing production before March 31, 2024.
  • No Minimum Alternate Tax (MAT) for companies opting for this regime.

General corporate tax rate:

  • 22% for domestic companies opting out of exemptions and incentives.
  • 30% for companies availing older incentives (applicable to companies with annual turnover exceeding ₹400 crore).

Goods and Services Tax (GST) Benefits

  • Input Tax Credit (ITC) available on capital goods, raw materials, and services.
  • GST refunds for exports under the Zero-Rated Export category.
  • Special tax structures and exemptions for SEZ (Special Economic Zone) units.

Special Economic Zone (SEZ) Incentives

For businesses setting up in SEZs within DPIA’s Free Zones, the following benefits apply:

  • 100% income tax exemption for the first five years on export profits.
  • 50% tax exemption for the next five years.
  • Exemption from GST on goods and services procured within SEZs.
  • Customs duty exemption on capital goods, raw materials, and finished goods.

Customs & Import Duty Exemptions

  • No import duties for companies operating in Free Trade Warehousing Zones (FTWZ) within DPIA.
  • Duty-free import of capital goods under the Export Promotion Capital Goods (EPCG) Scheme.
  • Refund of duties paid on imported raw materials used for export-oriented production.

State-Level Incentives

  • Stamp duty and land cost reimbursements for priority sectors.
  • Interest subsidies on capital investments in manufacturing.
  • Power tariff subsidies for energy-intensive industries.
  • Employment-linked incentives, including EPF/ESIC reimbursements for hiring skilled workforce.

Production-Linked Incentive (PLI) Scheme – A Game Changer for Manufacturing in India

The PLI Scheme is one of India’s most ambitious industrial policies, offering direct financial incentives to businesses for boosting domestic production, increasing exports, and creating jobs.

DPIA companies across key industries can leverage PLI benefits to enhance their competitiveness and reduce manufacturing costs.

Key Features of the PLI Scheme

  • Financial incentives ranging from 4% to 6% on incremental sales of manufactured goods.
  • Sector-specific PLI allocations covering industries such as Semiconductors, Electronics, EV & Battery Manufacturing, Green Energy, Pharmaceuticals, Food Processing, Textiles, and more.
  • Cumulative government outlay of over ₹2 lakh crore (approximately $26 billion) to support businesses over 5-7 years.

Top Sectors Covered Under the PLI Scheme at DPIA

Semiconductor & Electronics Manufacturing

  • ₹76,000 crore (~$10 billion) allocated for developing a semiconductor ecosystem.
  • Incentives for setting up Semiconductor Fabrication (FAB) Units, OSAT (Outsourced Semiconductor Assembly & Testing) Plants, and Display Panel Units.
  • Up to 50% capital expenditure reimbursement for semiconductor companies investing in India.

Electric Vehicles & Advanced Battery Manufacturing

  • ₹18,000 crore allocated for battery cell manufacturing under the ACC (Advanced Chemistry Cell) PLI Scheme.
  • Direct financial incentives for EV component makers, charging infrastructure developers, and lithium-ion battery manufacturers.

Green Hydrogen & Renewable Energy

  • ₹19,500 crore for Solar Module Manufacturing PLI.
  • Up to 50% incentives for Green Hydrogen production and Green Ammonia exports.
  • Financial support for setting up Wind, Solar, and Bio-Energy manufacturing units.

Pharmaceuticals & Life Sciences

  • ₹15,000 crore allocated for boosting API/Bulk Drug Manufacturing and Biopharmaceuticals.
  • Financial incentives for vaccine, biosimilar, and medical device manufacturers.

Food Processing & Agri-Tech

  • ₹10,900 crore for Ready-to-Eat, Dairy, Fruits & Vegetables Processing, and Organic Foods.
  • Tax benefits for Cold Chain Logistics, Agri-Tech Startups, and Export-Oriented Units.

Textiles & Technical Fabrics

  • ₹10,683 crore for boosting India’s Man-Made Fiber (MMF) & Technical Textile industries.
  • Support for Smart Fabrics, Defense Textiles, and High-Performance Industrial Clothing.

Why DPIA is the Best Place to Avail Tax & PLI Incentives?

Dighi Port Industrial Area is India’s next big industrial hub, designed to give businesses a tax-friendly and incentive-driven operational environment. By relocating or setting up your business at DPIA, you gain access to:

  • Exclusive Free Zones with maximum tax benefits.
  • Dedicated plug-and-play industrial parks.
  • Personalized assistance in securing PLI incentives.
  • Expedited government approvals and custom duty waivers.
  • A thriving industrial ecosystem with high export potential.

Let’s Make Your Business Tax-Efficient & Profitable!

Our dedicated DPIA Investment Advisory Team will help you navigate the tax and PLI landscape, ensuring that your business receives the maximum financial benefits available under India’s industrial policies.

Your Future Starts at DPIA

For more information, reach out to our team. The Smartest Investment Destination in India.

Dighi is the Bridge Between
the Global North and the Global South.

About

The is a Public Benefit Corporation (PBC) with a mission to establish Dighi as a key player in international economic collaboration, focusing on strategic partnerships with nations like USA, Europe, Australia, African Union, KSA, China, India, Qatar, Saudi Arabia, Türkiye, and the UAE across vital sectors such as energy, technology, agriculture, and finance. Our goal is to integrate lessons from successful global economic models, adopting best practices to ensure sustainable and inclusive growth. We aim to enhance economic prosperity and diversification, contribute to societal progress, and promote sustainable economic practices. By leveraging Dighi’s unique position, strives to drive substantial economic growth, spur innovation, and solidify Dighi’s stature in the international economic arena, resonating with the government’s vision of a technologically advanced and interconnected economy.

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