Effectively the government paying you to move there by allowing you to not pay any taxes. So if your company is paying $2m/yr in taxes, you’re being paid $2m+ to move your operations. You’ll lose some of that to construction costs, but you’ll likely more than make that up by paying (comparatively to previous employees) slave wages to locals.
It’s a thing to encourage foreign investors.
Honestly, if the Modi govt. is still furthering that strategy, I think that they are out of good ideas and should hand over to another.
What are tax holidays?
Effectively the government paying you to move there by allowing you to not pay any taxes. So if your company is paying $2m/yr in taxes, you’re being paid $2m+ to move your operations. You’ll lose some of that to construction costs, but you’ll likely more than make that up by paying (comparatively to previous employees) slave wages to locals.
It’s a thing to encourage foreign investors.
Honestly, if the Modi govt. is still furthering that strategy, I think that they are out of good ideas and should hand over to another.