Investors setting up units to manufacture goods for export can set them up as Export Promotion Zones(EPZs), or 100% Export Oriented Units outside EPZs. 100% foreign equity is welcome in both. Export earnings are exempt from income tax.

The EPZs are designed to provide an internationally competitive duty-free environment at low cost for export production. Each zone provides basic infrastructure and facilities like developed land, standard-design factory buildings, roads, power, water supply and drainage, and customs clearance facilities.

EOUs offer a wider option in project location with reference to sourcing of raw materials, port of export, availability of technological skills, presence of an industrial base and the need for a larger area of land.

Additional incentives are offered for electronics and software units set up in Electronic Hardware Technology Parks (EHTPs) and Software Technology Parks (STPs).

The Software Technology Park (STP) scheme is a 100 per cent export oriented scheme. It is similar to the Export Processing Zones and the Export Oriented Units schemes. To implement the STP scheme, the Indian government under the Department of Electronics (DoE) has set up an autonomous organization called the Software Technology Parks of India (STPI). Today there are STPs in Bangalore, Hyderabad, Gandhinagar (near Ahmedabad), Thiruvananthapuram, Noida (near Delhi), Pune and Bhuvaneswar. STPs have also been set up in Jaipur and Calcutta by the State Governments of Rajasthan and West Bengal.

The STPs are available for both Indian (private and public) and foreign companies. 100 per cent foreign equity is permitted. Several benefits are given to the member computer software exporting units: the STPs offer general infrastructure facilities like utility power, ready to use built-up space and dedicated data communication links.