Aishwary Jain, University of Petroleum and Energy Studies, Dehradun
ABSTRACT
This research study gives a comprehensive account of tax incentives in the State of Uttarakhand, India. It examines the impact of these incentives on industry investment, regional development, and economic growth since its inception in 2000. The article uses qualitative and quantitative data that looks into several incentives provided by the government to encourage industrialization and attraction of investors. Such incentives include capital subsidies for investments made, stamp duty cuts, energy tax exemptions, as well as GST benefits. This article critically analyzes whether these incentives have been effective in promoting economic diversification, employment creation, and sustainable development. These strategies are beneficial as they attract significant levels of local and foreign investments leading to economic growth in underdeveloped regions. However, there is also some evidence from this study on major challenges such as the question of fiscal stability maintenance or potential dependence on state aid. Furthermore, it has resulted in uneven progress across different sectors due to overemphasizing some areas.
This research provides strategic ideas for enhancing tax incentive policies. The objective is to promote sustainable, economic viability, and fair growth in distinct areas. The recommendations seek to contribute to the policy adjustments that strike a concession between immediate monetary benefits and long-term strategic aims, placing the state of Uttarakhand as a leader in supportable and comprehensive economic development in India.
Keywords: Tax Incentives, Industrial Investment, Economic Development, Sustainable Growth, Uttarakhand
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