Jammu & Kashmir State has made substantial progress in industrial development during the last four decades with the efforts made by the State Government and Government of India by sanctioning various Incentive Schemes/Packages. The state Government, has adopted Industrial Policies from time to time (i.e 1995, 1998 & 2004) the latest being Industrial Policy, 2016. Similarly Govt. of India sanctioned packages of incentives for the industrial development of the State at different intervals (Central Capital Investment Scheme, 2002, 2012) the latest being Scheme of Budgetary Support under Goods and Services Tax regime and JKIDS 2018, notified on 5th October, 2017 and 23rd April, 2018 respectively. 

• Central Capital Investment Incentive for access to credit (CCIIAC) @ 30% of the investment in plant and machinery with an upper limit of Rs.5.00 Crore.
• Central Interest Incentive (CII) @ 3% on Capital credit advanced by the scheduled banks or central/state financial institutions.
• Central Comprehensive Insurance Incentive (CCII) @100% of insurance premium on insurance of building & plant & machinery.
• Reimbursement of the Goods & Services Tax paid by the unit limited to the Central Governments share of CGST and/or IGST retained after devolution of a part of these taxes to the State.

• Sate Capital Investment Subsidy @ 30% of cost of plant and machinery with upper limit of Rs.60.00 Lakhs to 300.00 Lakhs and Rs.30.00 Lakhs to Rs.150.00 Lakhs in manufacturing & services sector respectively.
• Interest Subsidy on Working capital @ 3% to 5%.
• Subsidy on Pollution Control Devices @ 60% of the cost of pollution control devices subject to a maximum of Rs.50.00 Lakhs.
• Green and Environment Protection Initiatives @ 50% with upper limis of Rs. 2.00 to 6.00 Lakhs on the expenditure incurred on the equipment.
• Subsidy on purchase and installation of Diesel Sets of 10 KW to 2000 KW @100% with a maximum limit of Rs. 40/45 Lakhs.
• GI Certification @50%/30%/10% subject to maximum of Rs. 15/10/05 Lakhs during the 1st/2nd/3rd year respectively on expenses incurred.
• Quality Control and Testing Equipment @100% with upper limit of Rs. 35 Lakhs on cost of such equipments.
• Automation through computers/IT @25% of the expenditure incurred on automation.
• Pre-investment Studies/ Feasibility Reports @100% subject to a limit of Rs. 2.00 Lakhs at the time of execution of the project.
• Stamp Duty and Court Fee exemptions on mortgage deeds in favour of Financial Institutions required to be signed by promoter shall be exempted from payment of stamp duty.
• Air Freight Subsidy for registered Micro and SSI Units for any destination within the country @ 50% subject to a maximum of Rs. 5.00 Lakhs per year per unit.
• Toll Tax Exemption on import or raw material and export of finished goods, excepting goods brought on negative list.
• Toll Tax exemption against procurement of the plant and machinery, building material and other equipments required for construction of factory for a period of five years from the date of registration.
• Exemption from earnest Money/Security Deposits to the extent of 50% or Rs.5000/- whichever is less and also 50% of the cost of tender documents or Rs.100/- whichever is less.
• GST Reimbursement in terms of SRO 519, 521 of 2017 and SRO 63 of 2018. • Reimbursement of Integrated Goods and Services Tax for promotion of Small/Medium/Large Scale Industries in the state in terms of SRO 431 of 2018.
• State Freight Refund Scheme, 2018 in terms with Govt. Order No. 411-FD of 2018 dated 25.09.2018.