• Mohd Zulkarnain Sikandar
• Prof. Madhurima Lall

Abstract In this paper author studies the impact of Tax Incentive scheme federally financed by the Govt. of India to the State Govt. for the economic development of hilly states which are not able to join the race of socio-economic development of the country. The tax holiday was provided to Uttarakhand for initial period of ten years from 2003 till 2013.The study uses time series data for the study and find that there is a large increase in employment, total output, fixed capital, the number of firms and total amount invested as a result of the scheme. The author has used data to study the impact of tax incentive on treated state. The study shows that new firms entering the treated state are larger and more productive and therefore there is increase in the GSDP.

Economic Development, GSDP, Tax Incentive, Employment, Output, Fixed Capital

"Impact of Tax Incentive on Economic Development of Uttarakhand", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 4, page no.1025-1035, April-2019, Available :http://www.jetir.org/papers/JETIR2002358.pdf

"Impact of Tax Incentive on Economic Development of Uttarakhand", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 4, page no. pp1025-1035, April-2019, Available at : http://www.jetir.org/papers/JETIR2002358.pdf