Choosing an Indian state
India's states compete hard for investment. Industry clusters, incentives, land and power vary so much that location becomes a strategic choice.
What to compare
- Clusters: suppliers, customers and skilled people in your industry
- Incentives: state industrial policies offer capital subsidies, tax refunds, land and power support
- Infrastructure: ports, airports, industrial parks, reliable power and water
- Talent: universities, technical institutes and existing workforce
- Ease of approvals: state single-window systems for licences and permits
- Quality of life: for any European staff you send
How the main states compare
| State | Known for |
|---|---|
| Maharashtra (Mumbai, Pune) | Finance, automotive, engineering, IT, chemicals |
| Tamil Nadu (Chennai, Coimbatore) | Automotive, electronics, wind energy, textiles |
| Karnataka (Bengaluru) | Technology, capability centres, aerospace, biotech |
| Gujarat (Ahmedabad, Vadodara, coastal areas) | Chemicals, petrochemicals, pharma, ports, renewables |
| Telangana (Hyderabad) | Technology, pharma, life sciences |
| Uttar Pradesh (Noida, Greater Noida) | Electronics manufacturing, IT, large domestic market |
| Haryana (Gurugram) | Corporate offices, automotive, services |
Where to start
- Shortlist two or three states by cluster.
- Meet the state investment promotion agencies; they help with sites and incentives.
- Visit industrial parks and speak to companies already there.
- Compare incentive packages in writing, including conditions and clawbacks.
- Factor in travel time for European staff and customers.
