According to a report by the World Bank, on ease of conducting a business, India stands in the 63rd position among the 190 countries. In the last decade, India has improved its ranking in this business genre from 79 to 63. The main reason for this improvement was the implementation of the Goods and Service Tax and Insolvency and Bankruptcy Code. In this article, we will be looking at the top 10 business cities in India.
Now you may wonder what is a business city? A business city is any city that offers proper resources and equipment for a business to run successfully.
Besides China, India is developing as a new destination for business. Development in science, technology, specialization in services with any skill, innovation, and infrastructure is advantageous to India. India is emerging as the new space for FDIs (Foreign Direct Investment).
Top 10 Business Cities In India
The location for beginning a business always evaluates its expansion and growth possibilities due to the availability of raw materials, skilled employees, investors, etc. With so much explained if you are planning to set your business in India then these are the ten best business cities in India that you should consider.
Initiating a business in Mumbai would offer you good access to finance, an already developed infrastructure, and a skilled workforce. This city is at the top among the best business cities in India. Also among the top 100 business cities in India, Mumbai holds the first position. Here are a few reasons why you should consider Mumbai.
- All the well-established financial institutions have their head offices in Mumbai, where the businesses, if required, can apply for loans that they can get faster.
- For connectivity and traveling, the Mumbai Port Trust and the Jawaharlal Nehru Port Trust are the two main ports that will allow importing and exporting of goods from India. Along with that for traveling, Mumbai has Chhatrapati Shivaji International Airport which is the second busiest airport in India.
- Along with that, Mumbai is connected to varied national highways that offer high road transport opportunities.
- Placement of fresh skills from institutions like Narsee Monjee Institute of Management, IIT-Bombay, Jamnalal Bajaj Institute of Management & some other institutions would offer a productive and qualitative workforce.
However, having said that, there are some challenges while doing business in Mumbai. There is a growing population that in turn affects the value of the real estate and high cost of daily expenses.
Pune is considered as the business capital of India. It is also situated in Maharashtra and is close to Mumbai. It is a unique chance for businesses to operate from Pune, yet get complete access to Mumbai’s customer base, suppliers, capital market, etc. Here are a few reasons why you should consider Pune.
- Due to the six-lane Mumbai Pune Expressway, businesses can be located in Pune but can be a part of Mumbai as well.
- Since the cost of real estate is not high in Pune, businesses can use such low-cost infrastructures. The road connectivity of Pune is excellent, which connects to cities like Goa, Bangalore, Mumbai, and Hyderabad.
- Tech giants like Tata Consultancy Services, Infosys, Accenture Solutions offer technology aid & other infrastructure readily created.
Bangalore is known as the Silicon Valley of India or the city of technology and this city rightly justifies its name. It is the capital of Karnataka and has a population of over 5 million. This city is the third highest populated city in India. Bangalore is the top IT exporter in India which caters to 1/3trd of the total software exports. Some of the major tech giants in Bangalore include Accenture, Infosys, Wipro, Cisco, etc. Also, the Indian space research organization is located in Bangalore. Here are a few reasons why you should consider Bangalore.
- Kempegowda International Airport Bengaluru is said to be the fourth busiest airport in India. Also, Bangalore is connected to national highways and India Railways which offers the proper movement of goods and services.
- Bangalore offered bases to several startups like Hector beverages, Urbanladder, Zoom car, etc. It is an ideal city for businesses that are dependent on technology.
Unlike Mumbai, the national capital is known for its extreme climate. Delhi was the first city in India to have implemented the metro projects. The Delhi metro is connected with over 280 stations (Noida, Gurgaon, Ghaziabad, Faridabad, etc). It is extensively connected with the Indian railways and the national highways. Even though the population of Delhi is close to the population of Mumbai, it is not densely populated, which opens the opportunity for accessing the infrastructure. This city has important institutions Jawaharlal Nehru Institutes, IIT Delhi, NDIM (New Delhi Institute of Management) & many other institutes known for academic excellence.
But there are many challenges that may hinder the business in Delhi. They include Women’s Safety, Air Pollution, and Migrant Workers.
Hyderabad , the capital of Telangana is renowned for its IT culture and talented workforce. Before Bangalore acquired IT centrally, Hyderabad was the primary hub for the IT sector. This city is famous for its pharmaceutical corporations like Divis Labs, Dr. Reddy’s Lab, etc.
- Recently, several Biotechnology Parks, including Nano Technology park, Genome valley, and Fab City have been developed and established. Technical giants like Amazon, Bank of America, Microsoft, Facebook have been associated with this city for their business in India.
- This city has a lot that it can provide to businesses like capital, skilled workforce, along with the support from the government to grow and establish. Institutions like the Tata Institute of Fundamental Research, Indian Institute of Technology Hyderabad, NMIMS are renowned institutions in Hyderabad that offer the unique chance to acquire local talents and skills.
- Rajiv Gandhi International Airport is situated in the city of Hyderabad which offers utility services to businesses in the transportation of Business meetings, goods, and easy connectivity to any part of the world.
Chennai which was known as Madras is the capital city of Tamil Nadu. It is the 5th most populated city with the maximum number of English-speaking people. It is well known for its auto industry. This city caters to nearly 30% of the auto necessities of the country and is also responsible for the export of auto from the country the mount being nearly 60%. Major automobile manufacturers like BMW, Hyundai, Ford, etc are situated in Chennai.
- Chennai is growing as the biggest manufacturer of cars in India along with its accessories. The Indian Railway’s integrated coach is also made in Chennai.
- Chennai being among the top business cities also has a Telecommunication industry along with Information Technology Industry. This is also the place of top financial institutions like the Standard Chartered Bank, Citi Bank, and the World Bank.
Kolkata that was earlier known as Calcutta is the capital of West Bengal. It is considered as the Gamma City. It has undergone developments in industrialization recently. It is considered as the financial as well as the commercial hub of East India.
- The compelling presence of IT emerging rapidly offers the MNCs to establish their businesses to adhere to the requirements of East India. The renowned companies that are based in Kolkata are Britannia Ltd, ITC Ltd, Major financial institutions include UCO Bank, Bank of India, etc. It is also very famous for Sugarcane, Jute, mining & other sectors.
- Netaji Subhas Chandra Bose International Airport caters to the airport requirements of Kolkata and it is located roughly 15 Km from the city center. The Haldia seaport has been the major port providing the import & export requirements of the city.
- Indian Institute of Science Education & Research, IIT – Calcutta, are some of the renowned institutions in this city which provide fresh skills and talents to complete the needs of the workforce.
Indore is the biggest city and the commercial capital of Madhya Pradesh. The important industries of this city include Manufacturing, Pharmaceuticals, Automobile, and Textiles. It offers a great variety of the industry in the industrial periphery that includes the Sanwer Industrial belt and the Pithampur Special Economic Zone. According to a report of 2020, this city is ranked as the cleanest Indian city based on several parameters.
- Indian Institute of Science and Technology, IIM- Indore are prestigious institutions that create creativity and talent for business requirements. Being a strategic location among Delhi and Mumbai, it draws your attention to establish the business in Technology, IT, Factory & Middle office operators.
- The Devi Ahilya Bai Holkar Airport is situated 8 km from the city center that primarily serves the business requirements of Indore along with the adjacent city.
This is a city in Gujarat that has a huge prospect for the ease of conducting business. As per a report, the GDP growth of Surat is 11.5% which is the highest and this city is predicted to be the fastest growing city in the world. Surat is also called the Diamond capital of India where 92 percent of the diamonds around the world are processed & made ready for sale. Though most of the cutting and polishing are in smaller stones, businesses in Surat are planning to extend their ability to handle more valuable stones.
- The other rapidly growing industry in Surat is Silk and Textile production. The oldest business in Surat is JARI which has over 80000 Embroidery machines. The Other industries that are available in the location are L&T Engineering & Reliance Petrochemical, Essar.
- The road at Surat connects to other big cities in India and a new expressway has been built. The Surat railway station is among the major railway stations in India that connect to other states and cities. After Ahmedabad, the Surat Airport is the 2nd busiest airport in Gujarat. The city also has a Seaport.
Nagpur is the biggest city in central India & 3rd largest according to the population in the state of Maharashtra. The city is a political, commercial, and financial center for the Vidarbhas sector of Maharashtra. It is very popular for its Mangoes, Oranges, however, there are many more opportunities for business that are available in this city.
- The city has a Multimodal cargo hub and an airport which makes it easier for manufacturing institutions to build a business in Nagpur.
- IIM- Nagpur, IIT- Nagpur, are some of the notable and prestigious institutes in the city which prepare the best minds for business requirements.
Apart from these 10 cities, there are many other business cities in India. The above list was derived from the top 50 business cities in India. It is important for businesses to understand the requirements of the people in their respective locations and cities and support their system. There are many key considerations like labor force, products, customers, raw materials, and challenges that have to be taken into account while setting up a business.