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Which are the best cities in India to start a business?


Which are the best cities in India to start a business?

Since the last major economic reforms in 1991 and the early 2000’s, India has been progressing in leaps and bounds. A recent report by A.T. Kearney highlights the top 30 developing countries for retail investment worldwide and India now holds the number 2 position.  This and many other state and national investment initiatives have moved India up on the ease of doing business ranking.

India has been a source of economic activity for the last few years, and it doesn’t look to be slowing down any time soon. With all the new initiatives such as Make in India and Digital India, this trend looks only to increase Foreign Direct Investment (FDI) and make it easier for foreign companies to setup there.

So yes, it’s safe to say that India is ready for commerce; but does it make a difference where in India you choose to setup your business? Well, yes it actually does pay to know which cities or states are more accommodating to new and foreign business ventures in India. The following Indian cities have been identified and highlighted for their ease in allowing foreign companies to setup. It’s important to note that this list can vary according to what type of business you are planning to establish.

  1. New Delhi

According to the rankings by World Bank Group, Delhi actually comes in overall at number 6 out of 17 of other cities in India for ease of doing business. However, the reason why we placed it in top spot is because it holds the full package when starting a business. It takes only an average of 32 days to start a business in New Delhi. It’s also the largest commercial centre in North India and has the highest per capita income in the country. New Delhi has seen significant growth due to the presence of the ample workforce that is fluent in English, which has drawn the interest of several international companies. The following sectors make up the majority of businesses in Delhi:

  • Information technology


  • Banking


  • Hotels


  • Telecommunications


  • Media


  • Tourism    


       2. Bangalore

Capital of the state of Karnataka, Bangalore, also known as Bengaluru to the locals, is Asia’s quickest growing cosmopolitan city. If your company has anything to do with technology or will require a tech component in the future, then it’s highly advisable to consider Bangalore for your India headquarters. In addition to being called the Silicon Valley of India, Bangalore understands the young entrepreneur and has made it much easier for start-up companies to establish themselves here. Many multinational companies such as Microsoft, Google, Intel, Wipro, Honeywell and Accenture also have a home base in Bangalore. The city is also home to the leading educational institutes in India.

       3. Ahmedabad

Ahmedabad is the primary supplier of denim and one of the biggest exporters of gemstones and jewellery in India. It is also fast becoming an automobile hub with companies such as Tata Motors, Ford and Maruti Suzuki establishing plants near Ahmedabad. Much of Ahmedabad’s success in the last few years is actually because of the state it’s located in. Gujarat has been leading the country in business formation reforms and initiatives to entice foreign investment to the state. The current Prime Minister, Narendra Modi is from Gujarat, and his current plan of increasing FDI by opening India up internationally for business is actually a macro version of what he originally established in Gujarat. He implemented policies and subsidies that would attract other states and countries to setup processes in Gujarat, which in turn prompted further economic growth for the state. His planning and foresight is one of the reasons why Ahmedabad is such an attractive city for establishing a business.

If you want to know more about other cities which are right for starting a business in, keep a check on our website.

At QX Corporate Advisors we help with the entire business setup process.  We also ensure that all permissions required by regulatory bodies are attained as quickly as possible. We can provide customised services for business entity setup, approvals, legislative registrations and all of their post registration compliances. If you’ve been thinking about entering the Indian market or have any questions about India market entry strategy email us or call us on 0845 838 2672.

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