Location Guide

Best Locations in India for Foreign Companies

India is not one market. The right state depends on your sector, talent needs and incentives — here's how the leading destinations compare, each with a detailed hub.

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In short: For foreign companies, the leading India locations are Maharashtra (finance & HQ), Karnataka–Bengaluru (India's largest GCC/tech base), Delhi NCR & Gurugram (corporate HQs, no professional tax), Gujarat–GIFT City (India's only IFSC), Telangana–Hyderabad (fastest-growing GCC hub), Tamil Nadu (manufacturing), Kerala (NRI & IT) and Andhra Pradesh (ports & manufacturing). Choose by sector fit, talent, incentives and time-to-setup.

How to choose a location in India

Sector cluster & talent — where your customers, partners and hires already are
Incentives — SEZ, GIFT City IFSC, PLI schemes, state-level capital subsidies
Cost of talent and real estate — often 40–60% cheaper outside Mumbai / Bengaluru cores
Connectivity — international airports, ports and industrial corridors
State levies — professional tax, stamp duty and RoC differ by state

The leading states compared

State / Hub	Best for	Standout advantage
Maharashtra (Mumbai / Pune)	Finance, MNC HQ	India's banking & capital-markets capital
Karnataka (Bengaluru)	Tech, R&D, GCC	Largest GCC base & deep-tech talent
Delhi NCR	Corporate HQ, policy	No professional tax, ministry access
Haryana (Gurugram)	GCC, MNC HQ	Cyber City, airport proximity, no professional tax
Gujarat (GIFT City)	Finance, IFSC	India's only IFSC, Section 80LA tax holiday
Telangana (Hyderabad)	GCC, pharma	Fastest-growing GCC hub, TS-iPASS clearances
Tamil Nadu (Chennai)	Manufacturing	Auto & electronics ecosystem
Kerala (Kochi)	NRI, IT	NRI heartland, Technopark / Infopark
Andhra Pradesh (Visakhapatnam)	Ports, manufacturing	East-coast ports & industrial corridors

Special zones: GIFT City, SEZs and PLI

GIFT City in Gujarat is India's only International Financial Services Centre (IFSC), regulated by the IFSCA — it enables foreign-currency operations, offshore banking, fund management and a Section 80LA tax holiday. Special Economic Zones (SEZs) across Tamil Nadu, Karnataka, Maharashtra, Telangana and elsewhere offer duty-free imports and export-oriented tax benefits. Production-Linked Incentive (PLI) schemes reward incremental output in 14 sectors including electronics, pharma, auto components and specialty steel.

Then narrow to a city

Once the state is chosen, city selection turns on talent pools, real-estate cost and time-to-hire. Each state hub page above covers the leading commercial cities in detail. For the wider question of entry mode and sequencing, see our India market entry strategy guide.

Frequently asked questions

Which is the best state to set up a business in India for a foreign company?

It depends on sector: Maharashtra for finance/HQ, Karnataka (Bengaluru) for tech and R&D, Gujarat's GIFT City for financial services, Tamil Nadu for manufacturing, and Telangana (Hyderabad) as the fastest-growing GCC hub. We match the location to your sector, talent and incentive needs.

Where do most foreign GCCs set up in India?

Bengaluru (Karnataka) has India's largest existing base of Global Capability Centres, while Hyderabad (Telangana) is the fastest-growing GCC hub. Gurugram (Haryana) and Pune are also major GCC locations.

Which Indian states have no professional tax?

Delhi and Haryana do not levy professional tax, unlike Maharashtra, Karnataka, Tamil Nadu and most other states — a small but real saving for NCR-based entities.

What is GIFT City and who is it for?

GIFT City in Gujarat houses India's only International Financial Services Centre (IFSC), regulated by the IFSCA. It offers foreign-currency operations and a Section 80LA tax holiday, and suits funds, fintech, banking and NRI investment structures.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last updated: July 2026.

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