Tax Incentive is always considered as an important factor by most of the business houses. Government provides tax incentives to industries to stimulate business activities, technological progress, capital formation leading to industrial as well as economic growth. Fiscal policy norms are designed in such a manner that the industry gets benefits by availing tax incentives. These incentives influence after tax profitability, capital assets compositions, retained earnings and boost investment and growth. To this end in view, the present research paper aims at studying the impact of corporate tax incentives on the growth of engineering industry during a decade of 2005-2006 to 2014-2015. The study revolves around five financial variables identified as factors leading to industrial growth. These variables are profit after tax, gross fixed assets, capital employed, reserves and surplus and shareholder’s equity. The objective of the study is to highlight the influence of tax incentives on variables reflecting industrial growth. For analysis, the data of these variables is collected. It is observed that on an average, the values of variables are increasing throughout the period of review. The relationship between tax incentives and variables signifying growth is studied with the help of linear regression analysis. The results conclude that the engineering industry is positively affected by tax incentives.  A classification of companies into large, medium and small and their data analysis also indicates that tax incentives have a favorable impact on the growth of engineering industry.