It is the financial and promotional assistance provided by the government to the industries
for boosting up industrial development in all regions particularly in backward areas. Incentives
include concession, subsidies and bounties. ‘Subsidy’ denotes a single lump-sum which is given by
a government to an entrepreneur to cover the cost. It is granted to an industry which is considered
essential in the national interest. The term Bounty denotes bonus or financial aid which is given by
a government to an industry to help it compete with other units in home market or in a foreign
market. Bounty offers benefits on a particular industry; while a subsidy is given in the interest of
the nation. The object of incentives is to motivate an entrepreneur to start new ventures in the larger
interest of the nation and the society
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