Synopsis- India’s business landscape has been rapidly evolving with reforms, digital governance, and proactive policies making it easier for entrepreneurs and investors to start and operate businesses. This article is about the top 10 states and cities in India to start a business easily.
India represents a mainstay of value investment opportunities, attributable to various reforms and changing regulations that have made starting a business and implementing operations easier than it has ever been. The entrepreneurial and corporate investment landscape in India has been defined by the policies of transparency of the government, ensured through digital governance, and proactive state involvement. In this article, we will be exploring the top 10 states and cities that stand out for ease of doing business in India.
India’s Business-Friendly Environment
India is making upward progress in global competitiveness and logistics performance indexes. For example, in IMD’s World Competitiveness Index 2024, India ranked 39th in the world 2024 and 38th in the World Bank’s Logistics Performance Index 2023. Many kinds of recent reforms have further lubricated and streamlined forms that incentivize enhancing regulatory simplicity, a requirement of transparency, and equality to promote entrepreneurship across the country. The reforms are apparent in the global economic indices’ climb and business-friendly hubs emerging throughout India’s valleys.
1. Maharashtra
- Maharashtra has once again topped the list, as it has ample infrastructure and investor-friendly policies. With MAITRI and a strong industrial base, the state becomes a great place to do business.
- Mumbai: India’s financial capital, with excellent access to finance, corporate services, and trade infrastructure.
- Pune: A rapidly growing location for automotive, IT, and education with a vibrant investment facilitation strategy and talent pool.
2. Gujarat
- Gujarat is a star performer with an efficient single window clearance system and a booming industrial sector that is aligned with textiles, chemicals, and manufacturing.
- Ahmedabad: This city has excellent logistics and also boasts industrial corridors such as the Dholera SIR (Special Investment Region), alongside a vibrant MSME community powering its economy.
3. Karnataka
- With digital governance initiatives like the e-Udyami portal and as an IT powerhouse of the country, Karnataka has been a frontrunner state for startups and enterprises for a long time now.
- Bengaluru, which is also known as the Silicon Valley of India, is innovating in the IT sector and leads the way for startups and a highly skilled workforce.
4. Telangana
- Telangana has been encouraging ease of doing business through TS-iPASS and innovation centers such as T-Hub, which focuses on mentorship for startups and the biotech ecosystem.
- Hyderabad: Hyderabad is growing rapidly as a tech and biotech hub. The promotion of ease of doing business with streamlined clearances and effective government driven programs for entrepreneurship support.
5. Tamil Nadu
- Tamil Nadu has good manufacturing capabilities, good logistics, and skilled human resources. When you combine these things, it leads to an attractive region to invest for entrepreneurs.
- Chennai: Chennai is rich in manufacturing capability, port connectivity and business is export-oriented.
Also read: India’s Top 10 Wealthiest States in 2025 – See Who Tops the List
6. Kerala
- Kerala is good in service, where it has established a good human capital base and engaged in governance reforms that recognized how to make doing business easier.
- Kochi: Kochi is a port city developing its own digitalization strategy along with Special Economic Zones (SEZs). Kochi is developing as an IT city as well as putting shipping on the global radar.
7. Andhra Pradesh
Andhra Pradesh has a reputation for pushing administrative reforms quickly as well as sectoral digitalization that supported ease of doing business, as well as supporting clearances.
8. Rajasthan
- Rajasthan has made great strides to ease regulations and support MSMEs, improving its business environment overall.
- Jaipur: The district utilizes administrative simplifications and MSME growth initiatives.
9. Goa
Although it is the smallest state, Goa’s investment in infrastructure and pro-business policies greatly enhanced the business environment.
10. Uttarakhand
Uttarakhand offers business encouragement through investment incentives and digital governance measures that promote a tranquil business environment for nascent companies.
What does the ranking tell you?
- Digital Governance and Process Streamlining: Online single-window clearances, real-time grievance redressal, and digitized permit systems are an incredible benefit of increased, direct electronic governance, from offline delivery of digitized services as well, representing a reduction in cost and time-overheads for both new and existing businesses.
- Sectoral Strength and Innovation: Each business sector has states of strong importance and concentration, Karnataka and Telangana in technology/biotech, Gujarat and Maharashtra in manufacturing/finance, Kerala and Tamil Nadu in services/exports. There is ease of doing business in each of these forceful sectors precisely because of their accompanying and respective policies.
- Infrastructure and Connectivity: World-class airports, ports, industrial corridors, and smart cities are essential enablers of business activities supporting resultant investment or supporting corporate existence. Cities like Mumbai, Ahmedabad, and Hyderabad are among the predominant ones.
| Rank | State | Business Highlights | Key City/Cities and Highlights |
| 1 | Maharashtra | Excellent infrastructure, MAITRI portal, strong industrial base | Mumbai: Financial capital with strong financing, corporate services, and trade infrastructure Pune: Growing automotive, IT, and education hub with skilled workforce support |
| 2 | Gujarat | Seamless single-window clearance, strong industrial sectors | Ahmedabad: World-class logistics, Dholera SIR industrial corridor, thriving MSME community |
| 3 | Karnataka | Digital governance (e-Udyami portal), IT powerhouse | Bengaluru: Silicon Valley of India, IT innovation hub, startup ecosystem, skilled workforce |
| 4 | Telangana | TS-iPASS system, innovation hubs like T-Hub | Hyderabad: Tech and biotech hub with streamlined clearances and government support |
| 5 | Tamil Nadu | Advanced manufacturing, solid logistics, skilled workforce | Chennai: Manufacturing strength, port connectivity, export-oriented environment |
| 6 | Kerala | Service sector, human capital, governance reforms | Kochi: Port city with digital initiatives and SEZs, growing IT and shipping industries |
| 7 | Andhra Pradesh | Swift administrative reforms, sector-specific digitalization | – |
| 8 | Rajasthan | Simplified regulations, MSME support | Jaipur: Administrative simplification, MSME growth initiatives |
| 9 | Goa | Infrastructure investments, pro-business policies | – |
| 10 | Uttarakhand | SME incentives, digital governance | – |
Conclusion
The emerging business environment, and its definition, lies in a combination of the state and its growing dynamism of cities, which will further enhance business friendliness as seen through a concerted effort at the policy and executive branch. Five states that rose to the top were Maharashtra, Gujarat, Karnataka, Telangana, and Tamil Nadu, and five cities (in similar order) were Hyderabad, Bengaluru, Ahmedabad, Mumbai, and Pune. Each of these engaged leaders combined high levels of regulatory simplicity with an engineered infrastructure world, engaged sectors, and an innovative approach to provide the best environment for businesses.
Written by Adithya Menon
