Promoting small enterprises an interventionist mechanism

In order to promote economic development in backward areas, many developing countries have offered incentives to businesses starting up or moving to these regions. This article surveys the kind of regional incentives offered in several developing countries, and then takes India as a case study, and examines the schemes available there. It asks whether there is widespread knowledge of the incentives in the business community, and whether they are sufficiently attractive to overcome the disadvantages of moving business location.