Investment Promotion Scheme (IPS) for MSME Sector: Incentives for Doubling of Export Values

Investment Promotion Scheme (IPS) for MSME Sector: Incentives for Doubling of Export Values is a state-level scheme run by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu. It helps local MSMEs grow their global reach by offering a financial reimbursement to manufacturing and service units that double their export value compared to the previous financial year. The scheme is open for applications through the official single window portal.

This sub-scheme sits under the wider Investment Promotion Scheme (IPS) for the MSME sector. It was first launched on 3rd July 2015 for a five-year period, and then extended from 20th May 2022. The current phase, known as IPS 2022 to 2027, stays valid from 20 May 2022 to 19 May 2027. As of 13 August 2026, the scheme remains in force and applications are being accepted.

Investment Promotion Scheme (IPS) for MSME Sector: Incentives for Doubling of Export Values - Introduction

This scheme works as a growth pillar for businesses inside the union territory. Run by the department of industries, it helps MSMEs improve their export performance and add to the local economy. The main aim of Investment Promotion Scheme (IPS) is to protect the MSME sector from market ups and downs and push sustainable growth. It also tries to raise women's participation in the workforce, cut unemployment among local residents, and encourage industries to hire resident workers.

By focusing on doubling export values, this sub-scheme gives the financial backing needed to compete in global markets through performance-based reimbursements. The reward is a cash benefit that depends on how much the unit's export value grows in a year.

Key Information

Benefits

This scheme rewards hard work by offering a financial reimbursement based on annual export performance. Eligible units can apply for these incentives for every eligible annual year during the scheme period. The incentive rate depends on who runs the business.

For example, if a woman entrepreneur succeeds in doubling her exports, she could receive 2% of that export value, capped at ₹30,00,000, as long as she meets all the criteria.

Eligibility

To get the benefit of this scheme, a unit needs to meet the following conditions:

• It should be a new or existing manufacturing or service unit in the MSME sector that has taken up expansion or diversification.
• The unit must have started commercial production between 20.05.2022 and 19.05.2027.
• The business must be physically located within the union territory of Dadra and Nagar Haveli and Daman and Diu.
• The application must be submitted within six months from 31st March of the preceding financial year.

Application Process

The whole application process is done online through the official single window portal. Follow these steps to register and apply.

STEP 1 - Go to the Registration page on the official single window portal. Enter your details, verify your email through the link sent to your inbox, and use the OTP (111111) to confirm your mobile number. Once registered, wait for your login credentials to arrive by email.

STEP 2 - Log in at the official login page using your mobile number and PIN. Go to the Departments & Services section, find the District Industries Centre, and select the link to apply for the Investment Promotion Scheme (2022-2027).

STEP 3 - Fill out the common application form, upload all the required documents, and click submit. Keep a copy of the acknowledgement for future reference.

Helpdesk

For support, contact the District Industries Centre at 0260-2260871 or 0260-2260310, or email dic-dd@nic.in. For technical help on the portal, call 0260-2231885/2231886 or email ddegs-dd@nic.in.

Documents

Keep these documents ready before starting the application so the process goes smoothly:

• Corporate Identification Number (CIN) document.
• Taxpayer Identification Number (TIN) document.
• Permanent Account Number (PAN) document.
• Goods and Services Tax (GST) registration.
• Udyam Registration or Industrial Entrepreneur Memorandum.
• Partnership deed/firm registration or Memorandum and Articles of Association with incorporation dates.
• Land purchase deed or a registered lease agreement valid for at least 5 years.
• Electricity sanction order and a copy of the latest bill.
• Authorization letter.
• Consent to operate from the local Pollution Control Committee.
• Factory license.
• Signed undertaking form.

References

• Guidelines
• FAQs

FAQ's

Which products qualify for this incentive?

The scheme only considers the export of finished products for financial support.

What happens if I transfer my enterprise to a new owner?

If the business is sold or transferred within the first five years, the new owner can claim the remaining benefits for the unexpired portion of the term.

How is expansion defined?

Expansion or diversification requires an increase in investment of at least 50% from the existing gross fixed capital, with at least 60% of that new investment going into plant and machinery. This support can be claimed only once during the operative period.

How does the government prevent misuse of funds?

Strict documentation and verification rules are in place so that only genuine and eligible enterprises receive these subsidies.

What is the operative period?

The scheme is active from 20.05.2022 until 19.05.2027.

Can I apply if my business started in 2023?

Yes. If eligible, benefits can be received for five years starting from the date commercial production began, even if this extends past the official program end date.

Can I apply for multiple schemes at once?

Yes, the most beneficial scheme can be chosen for a unit. However, the same subsidy cannot be claimed under multiple schemes. Complementary schemes can be applied for.

What is the application deadline?

The application must be submitted within six months of 31st March of the relevant financial year.