India’s business ecosystem has witnessed significant reforms in recent years, driven by the Digital India mission, startup culture, and policy shifts favoring entrepreneurs. Among these developments, the Ease of Doing Business (EoDB) index, developed by the Department for Promotion of Industry and Internal Trade (DPIIT), has become a critical benchmark for evaluating how conducive different Indian cities are for businesses to thrive. In this article, we explore the top 5 Indian cities leading the Ease of Doing Business rankings in 2025, taking into account infrastructure, regulatory environment, digitization, and access to resources.
1. Hyderabad, Telangana
Hyderabad continues to be a front-runner in promoting entrepreneurship and industry growth. As the capital of Telangana, the city has leveraged policy-driven reforms and technology infrastructure to create a startup-friendly environment. Efficient governance, startup incubators, and simplified compliance processes make Hyderabad a hub for innovation and ease of doing business. Why Hyderabad ranks high:
- Telangana’s TS-iPASS (Telangana State Industrial Project Approval and Self Certification System) enables time-bound clearances for industries.
- The city has well-established tech parks like HITEC City and T-Hub—India’s largest innovation campus.
- Strong focus on IT, biotech, pharma, and aerospace sectors.
- Government schemes like Innovation Policy 2024 and Startup Telangana empower entrepreneurs.
2. Ahmedabad, Gujarat
As the commercial hub of Gujarat, Ahmedabad has become a leading choice for businesses due to its pro-investment policies and strong infrastructure support. Ahmedabad’s blend of economic vibrancy and policy support positions it as a preferred business destination. What gives Ahmedabad an edge:
- The Single Window Clearance System in Gujarat streamlines and speeds up the approval process for businesses.
- Home to large-scale industries in textiles, chemicals, and manufacturing.
- The Dholera Special Investment Region (DSIR) adds strategic value for logistics and trade.
- Business-friendly policies like the Gujarat Industrial Policy 2023 have incentivized MSMEs and large industries alike.
3. Bengaluru, Karnataka
Bengaluru, frequently referred to as the ‘Silicon Valley of India’, has become a symbol of the nation’s information technology boom. But beyond its startup fame, the city has consistently ranked high for ease of doing business due to its infrastructure and digital governance. Despite urban challenges, Bengaluru’s tech-forward approach and skilled workforce maintain its stronghold on business efficiency. Key drivers of Bengaluru’s performance:
- Karnataka’s EoDB initiatives like e-Udyami and Invest Karnataka portal offer seamless regulatory clearances.
- Extensive talent pool in tech, AI, and deeptech.
- A mature startup ecosystem with accelerators like NASSCOM 10,000 Startups and Elevate Karnataka.
- Ongoing infrastructure upgrades, including metro expansions and the suburban rail network.
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4. Indore, Madhya Pradesh
A surprise performer, Indore has risen as a dark horse in the EoDB rankings. With continuous administrative reforms, Indore has transitioned from a clean city to a smart city ready for business. Indore is a rising star, offering a balanced environment for startups, MSMEs, and large enterprises. Why Indore is climbing fast:
- Simplified licensing under MP’s Single Window System.
- Strong digital infrastructure and governance under the Smart Cities Mission.
- Investment-friendly schemes like MP Industrial Development Policy 2022.
- Its reputation for cleanliness and sustainability enhances both quality of life and the appeal of the city as a workplace.
5. Pune, Maharashtra
Pune has evolved from a manufacturing and educational hub to a rising IT and industrial power center. Its proximity to Mumbai and growing infrastructure investments make it a strong contender in the ease of doing business rankings. Pune’s evolving infrastructure and proactive governance offer a powerful mix for businesses looking to scale. Pune’s business-friendly highlights:
- The Mahaswayam and MAITRI platforms launched by Maharashtra simplify regulatory compliance and facilitate efficient hiring processes.
- Thriving sectors include automotive, IT, education, and biotech.
- Industrial corridors like the Pune Metropolitan Region Development Authority (PMRDA) are seeing increased investor interest.
- Strong focus on skilling and workforce development through public-private partnerships.
Key Factors Driving These Rankings
- Digital Single Window Systems improve the ease of doing business by offering faster approvals and hassle-free compliance through a centralized online platform.
- Policy reforms that encourage innovation and reduce red tape.
- Industry-specific hubs like IT in Bengaluru, pharmaceuticals in Hyderabad, and textiles in Ahmedabad strengthen regional business ecosystems and attract targeted investments.
- Proximity to logistics networks, ports, and industrial corridors.
- Sustainability and smart infrastructure boosting ease of operations.
The Ease of Doing Business rankings are not just a reflection of governance efficiency but also a signal to investors and entrepreneurs about where opportunities are ripest. Hyderabad, Ahmedabad, Bengaluru, Indore, and Pune represent India’s evolving urban economic landscape—each with its unique strengths but united by a commitment to growth and innovation. As India continues to rise as a global economic powerhouse, these cities will play a critical role in shaping the future of business in the country.
Written by Pydimarri Hema Harshini
