India is a growing economy which offers unprecedented business opportunities. Indian markets are considered as one of the key markets worldwide and have significant potential offering prospects of high profitability and favourable regulatory regime for investors. In fact, every state in the country has a unique economic profile that offers numerous opportunities to foreign investors looking to set up or expand their business in India.
Every year, the National Council for Applied Economic Research (NCAER) publishes its State Investment Potential Index (N-SIPI) to demonstrate the investment climate of India’s states. The NCAER publishes the report by assessing the competitiveness of Indian states on six key pillars – infrastructure, labour, land, economic climate, political stability and governance, and business perceptions. It is a pioneering effort to provide metrics of economic governance, competitiveness and growth opportunities at the state and regional levels. The aim of this report is to provide the domestic as well as foreign investors an overview of the Indian market.
As per N-SIPI 2018, Delhi is the most attractive state for investors, followed by Tamil Nadu, Gujarat, Haryana and Maharashtra. In this article, we will walk you through the country’s top five investment destinations and their economic features.
Delhi
New Delhi is the national as well as the administrative capital of India. Not only this, but it is also one of the largest cities in the world in terms of population. Delhi has established a new benchmark in attracting FDI (foreign direct investment) equity inflows into the country. The per capita income of Delhi is 2.5 times higher than the national average.
Delhi is the preferred choice of investors owing to reasons like investor-friendly policies of the government, great infrastructure, competent workforce and large consumer market. In fact, Delhi outperforms other states in India in terms of infrastructure and economic environment.
The city is a hub for all types of commercial and business activities. If you are looking for company formation in Delhi, the city offers great investment opportunities in the industrial sectors such as information technology, tourism, manufacturing and real estate.
Tamil Nadu
Tamil Nadu boasts of the second largest economy in terms of GDP among all the states in India. It is also the most urbanized state in India. Being surrounded by sea from three sides (i.e. Bay of Bengal, Indian Ocean and the Arabian Sea), Tamil Nadu is strategically located and serves as an important gateway to Southeast Asia.
Apart from being an educational hub, there are many industries in Tamil Nadu which are majorly engaged in healthcare, IT, automotive, textile and financial services. The favourable industrial climate, competitive manufacturing industries in the region and the largest number of special economic zones serve as a major advantage to the businesses eyeing to set up their base in Tamil Nadu.
Cities like Chennai, Coimbatore, Madurai, Tiruchirappalli, Salem and Tiruppur provide huge advantages of population and larger customer base.
Gujarat
Gujarat is a leading industrial state and boasts of the highest GDP growth among all the states in India. Due to its strategic location, it provides a gateway to the land-locked states in north India. In addition, Gujarat is well situated to provide strategic trade routes to the African continent and the Persian Gulf. Moreover, it is consistently ranked on top in the ‘ease of doing business surveys’.
Gujarat offers great investment opportunities in the industrial sectors such as petrochemicals and allied products, chemical and allied products, port and shipbuilding, conventional and renewable energy, pharmaceuticals, jewellery, gems, diamonds, textiles, food and agribusiness, engineering and automotive manufacturing, etc.
Cities like Ahmedabad, Surat, Vadodara and Rajkot provide huge advantages of population and larger customer base. There are well-renowned industries in Gujarat such as Adani group, Aditya Birla Group, Reliance, Mahindra & Mahindra and Godrej.
Haryana
Haryana is one of India’s largest automobile hubs and a preferred destination for auto majors and auto-component manufacturers. The state has also emerged as a base for the knowledge industry, including Information Technology and biotechnology. It is a top-ranked state in terms of business perceptions and ranks among other top states in the country in ease of doing business.
Haryana contributed around 3.32% to India’s GDP. The state offers a wide range of fiscal and policy incentives to businesses. Its key geographical location and progressive business environment attract local as well as global investors.
Haryana offers great investment opportunities in the industrial sectors such as automotive, IT, textiles, oil refining, agro-based industry, biotechnology and petrochemicals.
Maharashtra
Maharashtra is known as the most industrialized and wealthiest states in India. Mumbai, the capital city of Maharashtra is popularly known as the financial capital of India as it is home to some of the major banks and financial institutions such as the Reserve Bank of India, Bombay Stock Exchange, National Stock Exchange, General Insurance Companies and Life Insurance Companies.
If you are looking for company formation in Mumbai, you can grab the many advantages that the city offers such as its strategic location on the western coast of India; a gateway for imports into western India; conducive business environment; competitive banking, financial, and service industries; and largest entertainment industries in the world.
Maharashtra offers great investment opportunities in the industrial sectors such as automobiles and auto components, petroleum and allied products, chemicals, information technology, telecom, engineering, textiles, electrical and non-electrical machinery, etc.
Cities like Mumbai, Pune, Nagpur, Nasik and Aurangabad provide huge advantages of population and larger customer base.
If you are looking for company formation in India, you can choose any of the above-mentioned destinations. For company formation in India, you may seek help from a professional company like IMC Group.
