India, with its diverse economy and vast geographical landscape, offers a plethora of opportunities for industrial development. Entrepreneurs and businesses looking to establish their presence in the country often ask: Which are the best states in India for industrial setup? To help answer this, we’ve analyzed factors such as infrastructure, industrial policies, ease of doing business, and government support across various states.

This article highlights the top 10 states that have proven to be industrial powerhouses, backed by real data and insights into their industrial growth.

1. Maharashtra

Maharashtra is consistently ranked as one of the best states in India for industrial setup. It contributes 15% to India’s GDP and hosts numerous industrial hubs like Mumbai, Pune, and Nashik.

Key Features:

• Industrial Growth: Houses India’s financial capital, Mumbai, and is a leader in the automotive, pharmaceuticals, and IT sectors.
• Infrastructure: Home to JNPT (Jawaharlal Nehru Port Trust), India’s largest container port.
• Ease of Doing Business: Ranks high due to investor-friendly policies and initiatives like Magnetic Maharashtra 2.0.

2. Gujarat

Gujarat, often referred to as the “Growth Engine of India,” is synonymous with industrial success.

Key Features:

• Industrial Growth: Accounts for over 22% of India’s total exports.
• Notable Sectors: Petrochemicals, textiles, and automobile manufacturing.
• Government Initiatives: The Gujarat Industrial Policy 2020 has attracted significant FDI, making it a hotspot for industrial setup in India.

3. Tamil Nadu

Tamil Nadu boasts a well-rounded industrial ecosystem, with strengths in manufacturing, textiles, and electronics.

Key Features:

• Industrial Hubs: Chennai, Coimbatore, and Tiruppur.
• Industrial Growth: Contributes 9% to India’s GDP.
• Infrastructure: Has four major ports and one of the best rail networks in the country.

4. Karnataka

Known as the IT capital of India, Karnataka is also emerging as a leader in various other sectors.

Key Features:

• Industrial Hubs: Bengaluru, Mysuru, and Hubli.
• Key Industries: Aerospace, IT, biotechnology, and machine tools.
• Startup Support: Karnataka is home to over 40% of India’s startups, adding to its industrial ecosystem.

5. Andhra Pradesh

Andhra Pradesh is becoming increasingly popular for industrial setup in India due to its investor-friendly environment.

Key Features:

• Industrial Hubs: Visakhapatnam, Vijayawada, and Tirupati.
• Ease of Doing Business: Ranked #1 in the Ease of Doing Business Rankings by the World Bank and DPIIT in 2022.
• Notable Industries: Agro-processing, shipbuilding, and IT.

6. Telangana

Despite being a relatively young state, Telangana has made significant strides in industrial development.

Key Features:

• Industrial Hubs: Hyderabad, Warangal, and Karimnagar.
• Key Sectors: Pharmaceuticals, IT, and biotechnology.
• Government Policies: TS-iPASS policy has been instrumental in attracting large investments.

7. Haryana

Haryana has a strategic location near the National Capital Region (NCR), making it a prime spot for industries.

Key Features:

• Industrial Growth: Accounts for nearly 60% of India’s two-wheeler production.
• Infrastructure: Well-connected through highways, railways, and the Delhi Metro.
• Notable Hubs: Gurugram, Faridabad, and Manesar.

8. Rajasthan

Rajasthan is known for its rich mineral resources, making it an excellent choice for mining and allied industries.

Key Features:

• Industrial Hubs: Jaipur, Udaipur, and Kota.
• Key Industries: Cement, ceramics, and textiles.
• Government Initiatives: The One-Stop-Shop Scheme simplifies industrial approvals.

9. Uttar Pradesh

Uttar Pradesh has focused on infrastructure and policy reforms to boost industrialization.

Key Features:

• Industrial Hubs: Noida, Kanpur, and Lucknow.
• Infrastructure: The Yamuna Expressway Industrial Development Authority (YEIDA) is promoting industrial corridors.
• Key Industries: Leather, electronics, and IT.

10. Punjab

Punjab’s strong agricultural base also supports agro-based industries and more.

Key Features:

• Industrial Hubs: Ludhiana, Jalandhar, and Amritsar.
• Key Sectors: Textiles, sports goods, and engineering.
• Ease of Doing Business: Simplified procedures for new businesses through Invest Punjab.

Why Consider These States?

The states listed above offer unique advantages for industrial growth. Whether it’s the infrastructure of Maharashtra, the policy support in Gujarat, or the tech-savvy environment of Karnataka, each state has something to offer. When deciding on the best states in India for industrial setup, consider factors such as market access, resource availability, and incentives provided by the state government.

Examples of Successful Industrial Setups in India: A Closer Look

India’s top industrial states have seen remarkable success stories over the years, with businesses ranging from global giants to homegrown enterprises thriving in these environments. Below is a curated list of real-life examples of successful industrial setups in the best states in India for industrial setup, offering insights into how these companies have leveraged the strengths of these regions.

1. Reliance Industries – Gujarat

Reliance Industries, one of India’s largest conglomerates, has its largest manufacturing plant in Jamnagar, Gujarat.

• Facility: Jamnagar Refinery, the world’s largest refinery, processes over 1.24 million barrels of oil per day.
• Impact: This facility contributes significantly to India’s petrochemical exports and employs thousands of people locally.
• Why Gujarat? The state’s investor-friendly policies and proximity to major ports made it an ideal choice.

2. Tata Consultancy Services (TCS) – Maharashtra

TCS, a global IT services leader, operates one of its largest hubs in Mumbai and Pune.

Key Highlights:

• Facility: The TCS Sahyadri Park in Pune is a state-of-the-art IT campus.
• Impact: Employs over 30,000 IT professionals and contributes significantly to India’s software exports.
• Why Maharashtra? Maharashtra’s robust IT ecosystem and skilled workforce were crucial factors.

3. Hyundai Motors – Tamil Nadu

Hyundai Motors set up its first and only manufacturing facility in India in Sriperumbudur, Tamil Nadu.

Key Highlights:

• Facility: Produces over 750,000 vehicles annually, catering to both domestic and international markets.
• Impact: Contributes to Tamil Nadu’s reputation as the “Detroit of Asia.”
• Why Tamil Nadu? The state’s strong automotive ecosystem and well-connected infrastructure supported Hyundai’s growth.

4. Infosys – Karnataka

Infosys, a global leader in IT services, was founded in Bengaluru, Karnataka, and continues to have a strong presence in the state.

Key Highlights:

• Facility: Infosys Global Education Centre in Mysuru is the world’s largest corporate training facility.
• Impact: Trains thousands of employees annually, contributing to the state’s skilled workforce.
• Why Karnataka? The state’s IT-friendly policies and established tech ecosystem make it a preferred choice.

5. Amara Raja Batteries – Andhra Pradesh

Amara Raja Batteries, a leading manufacturer of industrial and automotive batteries, has its headquarters in Tirupati, Andhra Pradesh.

Key Highlights:

• Facility: Produces over 15 million batteries annually for domestic and international markets.
• Impact: Significant employer in the region, contributing to Andhra Pradesh’s industrial growth.
• Why Andhra Pradesh? Supportive government policies and access to resources played a key role.

6. Dr. Reddy’s Laboratories – Telangana

Dr. Reddy’s Laboratories, a global pharmaceutical company, has its headquarters in Hyderabad, Telangana.

Key Highlights:

• Facility: Operates several manufacturing units and an R&D center in Telangana.
• Impact: Among the top exporters of pharmaceuticals from India.
• Why Telangana? The state’s TS-iPASS policy streamlined industrial approvals and attracted significant investments.

7. Maruti Suzuki – Haryana

Maruti Suzuki, India’s largest car manufacturer, has a major manufacturing unit in Gurugram, Haryana.

Key Highlights:

• Facility: Produces over 1.5 million vehicles annually across its Haryana plants.
• Impact: Drives Haryana’s economy and employs over 25,000 people directly.
• Why Haryana? Proximity to Delhi-NCR and a strong logistics network made it a strategic location.

8. Vedanta Group – Rajasthan

Vedanta, a global mining and metal company, operates in Rajasthan’s rich mineral belts.

Key Highlights:

• Facility: Hindustan Zinc Limited in Udaipur is the world’s second-largest integrated zinc producer.
• Impact: Drives Rajasthan’s mining sector, contributing significantly to state revenues.
• Why Rajasthan? Abundant natural resources and a skilled workforce were key factors.

9. Samsung – Uttar Pradesh

Samsung Electronics operates the world’s largest mobile manufacturing facility in Noida, Uttar Pradesh.

Key Highlights:

• Facility: Produces over 120 million mobile devices annually.
• Impact: A major contributor to India’s electronics exports and provides over 70,000 jobs.
• Why Uttar Pradesh? Government incentives and infrastructure support made Noida an attractive destination.

10. Trident Group – Punjab

The Trident Group, a leading manufacturer of textiles and paper, operates in Barnala, Punjab.

Key Highlights:

• Facility: Among the world’s largest terry towel manufacturers.
• Impact: Drives Punjab’s textile exports and provides employment to thousands.
• Why Punjab? Access to raw materials and government subsidies facilitated its growth.

Lessons from Success Stories

1. Strategic Location Matters: Companies like Samsung and Maruti Suzuki chose locations with excellent market access.
2. Government Policies Play a Role: States like Gujarat and Telangana have demonstrated how investor-friendly policies attract businesses.
3. Sectoral Ecosystems: Tamil Nadu’s automotive cluster and Karnataka’s IT hub are prime examples of how clusters drive growth.

These success stories illustrate why these states are considered the best states in India for industrial setup. By combining strategic location advantages, strong government support, and robust infrastructure, these states have become industrial powerhouses.

If you’re considering setting up an industrial setup in India, studying these examples can offer valuable insights and inspiration for your venture.

Final Thought

India is brimming with opportunities for industrial development, and these ten states stand out for their conducive environments. Whether you’re a domestic entrepreneur or an international investor, these states provide a strong foundation for your industrial setup in India.

By leveraging the strengths of these industrial hubs and aligning with government initiatives, businesses can achieve sustainable growth in one of the world’s most dynamic economies.