Question

Which of the following is an incentive given by the government for development of small business?

• A. Most states have abolished octroi
• B. Subsidy of 10-15 per cent is given for building capital assets
• C. Some states encourage setting up of industrial estates in backward areas
• D. All of the above

Answer 1

The correct option is D All of the above

The following incentives are provided by the government to support small businesses like:-

1. Land: Developed Tots are offered by every state for establishing industries.

2. Power: Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years.

3. Water: Water is either supplied at 50% concession or is totally free for a period of 5 years.

4. Finance: Small business units are offered loans at a very low rate of interest i.e. 10 to 15% subsidy is given for building capital assets

5. Abolished octroi duty:- The octroi duty is charged on the goods that are entering the country or any city which increases the price of the goods and the government has abolished such taxes to support small businesses.

Thus, all of the above options are correct