The primary responsibility of industrial development of backward areas rests with the State Governments. The Union Government supplements their efforts through various Schemes launched by it with a view to promote industrialization in industrially backward areas of the Country. Department of Industrial Policy and Promotion (DIPP) was implementing Schemes for development of North East region and Special Package Scheme for Himachal Pradesh, Uttarakhand and Jammu & Kashmir, which have now ended.

Section 94 of the Andhra Pradesh Reorganisation Act, 2014 provides that the Central Government shall take appropriate fiscal measures, including offer of tax incentives to the State of Andhra and the State of Telangana, to promote industrialization and economic growth in both the States. Government of Andhra Pradesh has submitted a proposal for formulation of Entrepreneurship Facilitation Scheme.

This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today

Fiscal measures under reorganisation law require central tax incentives to spur industrialisation; Andhra proposes an entrepreneurship scheme. The reorganisation framework obliges the Union to adopt appropriate fiscal measures, including tax incentives, to promote industrialisation and economic growth in Andhra and Telangana; in that context Andhra Pradesh has proposed an Entrepreneurship Facilitation Scheme to advance industrial development in backward areas.