Any Business should base in a city where they have the best relationships with the business environment. This includes relationships with talent, suppliers, buyers, and investors.
Let us understand briefly about some states in India for starting a new venture: –
# Capital State of India i.e. New Delhi: –
- New Delhi is the capital city of India. It is one of the most targeted emerging market retail destination in Asia. Since New Delhi is the seat of the Central Government of India, many international organizations and embassies are stationed here, having a company here is a matter of prestige.
Few Benefits of Setting up of Business in New Delhi
The City is popular for setting up business in the below mentioned fields: –
- The dominant sectors in the city are, Information Technology, Retail Trade and Tourism.
- Delhi NCR, Noida and Gurugram in specific are the major Startup Hubs of the country.
- Delhi is a great city for Startups as the business environment is vibrant here.
- The National Capital Region of Delhi, Gurgaon and Noida are home to many multinational corporate companies whether the business is related to Software Development and Implementation, Retail Trading, Automobiles Trading and Manufacturing or Business Consulting etc.
# Mumbai, Maharashtra
Mumbai has seen so much of this world – be it struggle, business growth, education-par-excellence, a flourishing cinema industry, dreams becoming reality and the list goes on…
Few Benefits of Setting Up of Business in Mumbai: –
The City is popular for setting up of business in the below mentioned fields: –
- Most pharma companies, while establishing new facilities elsewhere, continued with the current manufacturing facilities in Maharashtra due to advantages like good infrastructure, availability of skilled manpower and ease of doing business. The state also has an advantage of skilled manpower with so many pharma graduates passing out of the pharmacy colleges every year. This skilled manpower supply is essential to maintain the international standards of manufacturing due to the strict regulatory guidelines by the regulatory bodies of the world. India has the highest number of US FDA approved plants.
- Most beauty brands are headquartered in Mumbai and that is where all decision-making happens – being in Mumbai has helped in move much quicker than some other companies which are located elsewhere.
- The city is also a home to Bollywood and Marathi cinema
- Mumbai is known as the Financial, Commercial and the Entertainment Capital of India.
- It is also one of the world’s top ten centers of commerce in terms of global financial flow.
- Mumbai’s business opportunities attract migrants from all over India.
# Bangalore
Karnataka “One State Many Worlds” is becoming a Hub of tourist attraction of South India. The IT Centre, Bengaluru has received more tourists in the recent past. The State is also known for its Heritage Monuments and Eco- Tourism destinations.
Few Benefits of Setting Up of Business in Bangalore: –
The City is popular for setting up of business in the below mentioned fields: –
- As dozens of new companies build products in Information Technology, Healthcare, Education and Retail, Bangalore’s reputation as a hub for cutting edge technology is being underlined further.
- Across sectors varied as technology, clinical research and retail, women are poised to burst a common myth that women-led businesses do not grow beyond a certain scale.
# Chennai
- Chennai is the capital of Tamil Nadu, India which is situated on the Coromandel Coast of Bay of Bengal.
- Chennai is also known as the Detroit of India because more than one-third of India’s automobile industry is based in Chennai. In last few years, Chennai has become one of the preferred destinations for IT companies such as Infosys, TCS, Wipro and Cognizant and various other MNCs. Chennai has the perfect combination of professionals and talent base for the business to flourish.
The City is popular for setting up of business in the below mentioned fields: –
- Automobile Sector
∇ The major reason behind Chennai developing into a major automobile hub or the “Detroit of India” is, being a major port city and a prime center of all the import-export business of the automobiles.
∇ The foreign majorly prefer to set shops in Chennai because they are importing most of their models in the country. Also there are few manufacturers which build their cars in India but aim at global markets. For them, Chennai serves as an export hub. For, both these type of manufacturers who want to set up factories in Chennai, the cost is reduced as they can easily avoid the transportation charges of shipping their car arrived at a port to their factory in any other city.
All these things make Chennai, a land of opportunities for entrepreneurs. After considering all these reasons, we can say Chennai has a tremendous potential to expand.
# Punjab
Punjab is located in North India, where it shares its borders with Jammu & Kashmir to the North, Himachal Pradesh to North East, Haryana to South East and Rajasthan to its South West. To the West, the State shares its international border with Pakistan
State of Punjab stood at the 16th position last year in DIPP’s EODB ranking but has now jumped up to the 12th position. The implementation percentage of Punjab stood at 91.07 percent as it implemented 306 out of 340 reforms mentioned by DIPP. Moreover, the state has bagged 1st position in ease of setting up business by the World Bank in 2015.
The City is popular for setting up of business in the below mentioned fields: –
- Key Reforms have been undertaken related to Land and Building, granting utility permits, Environment regulations, Labor regulation.
- Peaceful Labor Relations, Attractive Incentives, Robust Infrastructure and Skilled Human Capital.
Punjab leads in the following areas and provides businesses unlimited potential to choose Punjab as their base.
Gujarat
Gujarat is located on the west coast of India bordered by Rajasthan to the north, Maharashtra & Madhya Pradesh to the east, and the Arabian Sea to the west. It has a population of 67 Million with a GDP of $158 Billion.
Gujarat is the largest producer (35%), exporter (60%) of cotton in India. The state is also the third largest denim producer in the world. Peanuts, milk and sugarcane are some of the agricultural goods produced in Gujarat. Public listed companies such as Torrent Pharmaceuticals and Cadila Healthcare have their headquarters in Ahmedabad.
# Uttar Pradesh
- Uttar Pradesh is the historical heart land of India, where each part of the state is attached with ancient history, civilization, religions and culture. Uttar Pradesh is situated in the northern part of India, border with the capital of India New Delhi. Uttar Pradesh is the most popular tourist destination in India. Uttar Pradesh is important with its wealth of historical monuments and religious fervor. Geographically, Uttar Pradesh is very diverse, with Himalayan foothills in the extreme north and the Gangetic Plain in the center. It is also a home of India’s most visited site, the Taj Mahal, and Hinduism’s holiest city, Varanasi.
- Uttar Pradesh is an agrarian state which contributes 18.9% in food grain production of the country. The state has also witnessed rapid industrialization in the recent past. Uttar Pradesh attracts a large number of both national and international visitors. Uttar Pradesh ranks 10th among Indian states in rankings based on ease of doing business in India.
The City is popular for setting up of business in the below mentioned fields: –
The National Policy on Agriculture seeks to actualize the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic Liberalization and Globalization.
About the Author
Author is Neeraj Bhagat, FCA helping foreign companies in setting up of business in India and complying with various tax laws applicable to foreign companies while establishing a business in India. He is also founder of Neeraj Bhagat & Co. Chartered Accountants, a Chartered Accountancy firm established in the year 1997 with its head office at New Delhi.
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