Where to Invest in India: Analyzing Gujarat, Maharashtra, and Tamil Nadu’s Business Environment

Published: November 2023

Navigating the dynamic investment environment in India, with its diverse 28 states and 8 union territories, requires addressing unique challenges and opportunities for both established and emerging enterprises. We demonstrate key business intelligence parameters that foreign companies aiming to trade with or invest in India must secure during the pre-market entry or market expansion strategy phase, with a spotlight on three major industrial and manufacturing states in the country—Maharashtra and Gujarat in the west—and Tamil Nadu in the south.

Companies that adeptly navigate variations in regional government policies and incentive mechanisms, resource profiles, economic development and infrastructure, talent availability, and sociocultural norms, will succeed in their India business endeavors.

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The business landscape in India is a dynamic interplay of challenges and opportunities, catering to both well-established and emerging enterprises. With 28 states and 8 union territories, each characterized by unique language, culture, perspective, geography, infrastructure development, and industry regulations, effectively navigating this diversity is essential for foreign companies engaging in trade or investment.

As the world's most populous country, India's regional demographic spread significantly impacts the labor market size and requires foreign stakeholders to assess the quality of available human resources. Also, to succeed in the Indian market, foreign companies must conduct due diligence to identify suitable and cost-effective locations aligning with their operational needs, besides considering mature hubs in economically significant states.

This edition of India Briefing Magazine emphasizes the importance of market feasibility studies before entering India—crucial for optimal outcomes—by capitalizing on regional policies, industrial ecosystems, supplier networks, and talent sourcing. Additionally, we spotlight three prominent Indian states for manufacturing businesses, providing state-specific fact sheets that highlight key strengths and opportunities.

In this magazine:

  • Why Choose India for Your Investment P. 04
  • Investment Spotlight on Western India: Gujarat vs Maharashtra P. 10
  • Investment Considerations When Choosing Tamil Nadu State P. 19
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