Before choosing a state for your factory, compare these things

At a glance

Scroll horizontally to read all table columns.

Sources: Rajasthan policy portal, Gujarat Industries Commissionerate, PIB on Gujarat’s 2026 policy, Invest MP policy repository, Maharashtra policy repository

Rajasthan: distinguish the MSME package from the general manufacturing package

For selected projects, section 6.2 states additional interest subvention over and above RIPS 2024 on loans for plant and machinery, equipment or apparatus: 2% up to ₹5 crore, 1% for ₹5–10 crore and 0.5% for ₹10–50 crore. These additions apply to the specified eligible borrowing, not general borrowing or universal net interest rates. Similar benefits cannot be taken under multiple state policies. MSME Policy 2024, sections 6.2 and 7.7

The state’s FY2025–26 Economic Review records policy implementation from 8 December 2024 and validity to 31 March 2029. Official Economic Review

For an existing unit, the May 2025 RIPS amendment matters: its expansion illustration calculates eligible support on the additional investment, additional tax and expansion-related borrowing. Do not apply the new-project percentage to the whole historical factory. Finance Department amendment

Check before commitment: exact activity, MSME classification, applicable RIPS package, site, existing assets, eligible expansion, loan breakdown and the component-specific filing deadline. Use RajNivesh’s enterprise/project profiles and application route. The official calculator is useful for screening; it is not a sanction letter. RajNivesh application process and calculator

Gujarat: a 2026 project needs a transition check

The official Industries Commissionerate now links to Gujarat Industrial Policy 2026 and registration for Viksit Gujarat Industrial Policy 2026, while older policy links remain visible. The official iNDEXTb repository also lists the new policy. Industries Commissionerate, iNDEXTb policy repository

The previous Aatmanirbhar scheme’s published operative period ran from 5 October 2022 to 4 October 2027. That date alone is insufficient to decide which provisions govern a project starting after introduction of the new policy. Government scheme description for the previous framework

Current numeric package: not published in this comparison. The latest MSME implementing resolution and transition conditions need direct verification on the official policy trail before a project-specific calculation. Avoid combining old taluka categories, new capital-support percentages and an earlier interest-support period into one artificial package.

Check before commitment: commercial-production date, classification of the precise taluka under the applicable resolution, manufacturing versus service/trading status, new versus expanded capacity, eligible assets, local-employment obligations, application stage and aggregate assistance ceiling. A project can be attractive without qualifying for every advertised incentive.

Madhya Pradesh: eligible investment is the important denominator

The official Invest MP repository publishes the MSME Development Policy 2025. A 5 August 2025 state legislature answer confirms a 40% provision on eligible investment for manufacturing MSMEs under the MSME Promotion Scheme 2025, including specified additional assistance for tribal entrepreneurs. That is evidence of the scheme framework, not approval of 40% of every project’s total spend. Invest MP policy repository, Legislative answer, page 188

The policy distinguishes investment bands and sets separate expansion investment periods. Some investment-promotion calculations also depend on output and other performance measures. The factory’s land, working capital and historical investment must not silently be counted as qualifying new capital. Official policy copy, including expansion provisions

Check before commitment: the latest implementation scheme and amendments, negative-list activity, qualifying investment band, exact eligible asset base, commencement date, production records and expansion treatment. Current filing deadlines, full documentary checklist and a project-specific sunset/transition determination were not verified in this comparison. The older 2021 policy webpage is historical context, not the starting point for a new 2026 calculation.

Maharashtra: location changes the incentive basket

The official 31 December 2025 policy resolution runs for five years from notification or until a succeeding policy takes effect. Its MSME table varies the incentive ceiling and period by area classification. It contains interest, power, tax and capital-support provisions with separate conditions; some measures expressly need further notifications. A basket ceiling is not a single cash grant and should not be added again to its component benefits. Official policy resolution, English section pages 6 and 47–49

Current project entitlement: not calculated here. Verify the relevant taluka classification, unit size, sector and implementing scheme before selecting rates. Keep proposed measures separate from claim-ready assistance. Do not rely solely on a PSI2019 summary for a project governed by the newer framework.

The old MAITRI portal directs new registrations to MAITRI 2.0. Official migration notice

Check before commitment: new versus expansion status, first eligible investment date, production date, local employment and output conditions, tax treatment, electricity-related notification and current claim procedure.

How to compare two actual sites

Use the same production capacity, product quality and operating assumptions for both sites. Otherwise you will be comparing different businesses under the label of a state comparison.

1. Land and commissioning

Obtain the actual lease or purchase cost, permitted land use, access road position, building requirements and utility-connection estimate. Include conversion, construction, installation and commissioning time. Do not assume an industrial plot is ready for your particular activity.

2. Input supply and saleable output

Map suppliers, seasonality, quality variation, storage losses and delivery time. For processing, compare saleable output and by-products from the same quantity of input. A site close to raw material may still be a poor choice if quality, power or onward transport is unreliable.

3. Customers and collection cycle

Identify the customer segment, packaging and quality requirement, realistic freight route, credit period and return risk. Record evidence from quotations, market research or actual trading history. Do not invent a purchase commitment to improve a project report.

4. Cash before incentives

List promoter cash, committed bank finance, eligible project cost, excluded cost, working capital and contingency separately. Show when every proposed subsidy claim can be made and when cash is expected. Keep unapproved assistance out of the base-case funding available to commission the unit.

5. One benefit register

For every proposed claim, record the scheme, notification date, expense supported, amount/cap, filing deadline, evidence required, sanction authority and overlap restriction. Mark the same invoice wherever it appears. That makes accidental double counting easier to catch.

A practical document folder

This is a preparation list, not a substitute for a scheme’s official checklist:

• Entity constitution, ownership, identity and relevant category evidence
• Udyam and applicable business registrations
• Site title/lease, land-use position and approved layout where required
• Detailed project report, process flow and capacity assumptions
• Dated, itemised machinery and civil-work quotations
• Loan proposal, promoter funding evidence and financial statements
• Asset invoices, payment trails and commercial-production evidence when available
• Licences and consents relevant to the actual activity
• Employment, tax, power and export records for claims tied to those measures
• A complete declaration of previous or proposed government assistance

The decision to make

Choose a shortlist of sites on operating feasibility first. Calculate only the incentives for which the current rules and your project facts are established. Where the official terms remain unclear, record the unanswered question and use zero unapproved assistance in the base case. This protects the project from a comparison that looks precise but rests on the wrong policy.

Source appendix and limits

Primary sources are linked beside the relevant claims. This is an initial policy-and-feasibility screen, not a complete state-by-state incentive database. No claim is made that all component windows, exclusions, filing dates or amendments have been verified. Numerical entitlement requires the operative scheme and a specific enterprise, site, investment schedule and financing proposal.