Exemption from payment of corporate income tax for a block of five years in the first eight years of operation. After the five year block period, profits on export would continue to be exempt, as per norms specified. Units in the STP scheme have to meet an export obligation in net foreign exchange terms equal to one and a half times the CIF value of hardware imported and the wage bill incurred in India. Such units can also import telematic equipment without import duty. There is no export obligation on these imports.
Many American companies have significant software development facilities in India.
Some European companies have also established operations here, either with Indian partners, and on their own. Many Indian companies execute fixed price contracts. Work in India starts when it is early morning in Europe. The Indian Software industry offers European companies many benefits. Identify a key individual in your organisation to explore this opportunity.