India is home to one of the world’s most vibrant economies, with a population of above 1.4 billion and a speedily evolving middle class. But where should entrepreneurs and investors search when evaluating a business location? The answer lies in identifying the cities with the finest infrastructure, the best avenues, and the maximum capability for growth. As per the World Bank, India ranks 63rd in ease of doing business, though there are cities pushing the envelope, rendering it easier for companies to flourish.
India’s urbanisation to the future, tech cities packed with breakthrough technology, next-gen commercial centres, and booming industrial corridors, are all in the cards for the country’s cities. This business city tour dives into the cityscape, unravelling the business prospects in each location. With such practical information at your disposal, you will first of all apprise yourself of government policies on the different industries and later on familiarise yourself with the trends that will assist you in making an enlightened decision. Why not start now?
Best Cities to Start a Business in India 2026
The district in which you establish your business is a significant factor that determines the chances of your expansion, as it opens forays for the deserving employees, investors, and raw materials.
If you’re weighing a business launch in India and desire to know more, these are the best places for you to do business in India.
1. Delhi
Apart from enjoying the capital tag, Delhi is popular for its harsh climate, unlike Mumbai. Delhi is one of the early adopting states in the country to commence Metro projects. Delhi Metro flaunts an infrastructure of over 280 stations that link Noida, Gurgaon, Ghaziabad, and Faridabad.
It is an expansive network of National railways and highways. While the population of Delhi is almost corresponding to that of Mumbai, the city is less densely populated, which means that the infrastructure is more within reach.
The city boasts a number of landmark institutions such as IIT Delhi, New Delhi Institute of Management, Jawaharlal Nehru Institute and many more, highly reputed for their academic excellence and quality. Delhi is home to enterprises involved in government-financed projects.
The main bottlenecks in conducting business in Delhi are air pollution and security for women and Migrant workers. The mass media and government offices for clearance are beneficial for doing business in Delhi, which places it among the top cities to undertake commerce in India.
2. Mumbai
Launching a commercial startup in Mumbai could extend the scope to access finance, workers with skills, and already-built infrastructure.
Each of the banks with a longstanding history has its headquarters in Mumbai, which businesses can harness for expedited loan processing.
Mumbai retains the second-highest traffic airport in India, the Chhatrapati Shivaji International Airport. Plus, there are two big ports here. India’s leading ingress and distribution gateways are the Jawaharlal Nehru Port Trust and Mumbai Port Trust. Mumbai fans out through linkages with myriads of core National Highways and also has prominent road linkages such as the Bandra-Worli Sea Link Bridge and the expressway stretching from Mumbai to Pune, functioning as the primary infrastructural conduit. These roads present a whole lot of options for getting around by car.
Fresh talent is an optimal strategy to enter institutions like IIT-Bombay, Jamnalal Bajaj Institute of Management, Narsee Monjee Institute of Management, and a mix of institutions that would generate an efficient and effective workforce.
Though performing business in Mumbai has problems like an increasing population, fast skyrocketing of property prices, and high daily living costs. The city still has both challenges and opportunities, and being the money hub of the country, Mumbai gives remedies to every trouble, which makes it one of the early entrant business cities in India.
3. Pune
Pune is situated in Maharashtra and is near Mumbai. It’s an exclusive opportunity for companies to possess an office in Pune and still have access to customers, suppliers, capital markets, and Mumbai.
Businesses can be located in Pune and operate in Mumbai due to the six-lane Mumbai-Pune Expressway.
Since real estate in Pune isn’t too expensive, businesses can benefit from its affordable prices. Pune is quite efficiently road-linked to metropolitan cityscapes, including Bangalore, Goa, Mumbai, and Hyderabad. Lohegaon is the place where Pune International Airport is situated, and it is approximately 10 km from the city of Pune.
Indian Institute of Science Education and Research can serve as a benchmark along with other famous institutions like Deccan College Post-Graduate and Research Institute, and Symbiosis International University, which are located in central Pune and provide a top-tier labour pool that companies can hire and grow.
Tech giants like Infosys, Accenture Solutions, and Tata Consultancy Services deliver tech-driven know-how and other infrastructure that is optimally designed. The Maharashtra government aims to attract FDI through the MahaParwana (Mega Permission) Scheme, which is available to entrepreneurs who wish to set up a company in Pune. These are what make Pune one of India’s top cities for businesses to start in.
4. Hyderabad
Hyderabad is regarded as the capital city of the Telangana state. It is famous for its tech-savvy human capital and IT culture. Before Bangalore became a landmark technological centre, Hyderabad was a central hub of Information Technology. Hyderabad is best known for its pharmaceutical companies, such as Dr Reddy’s Laboratories and Divis Laboratories.
Hyderabad is remarkable for providing companies with capital and a competent labour force, and also state-sponsored support to build and grow. In Hyderabad, there are top-tier educational and research institutions like IIT Hyderabad, NMIMS, and the Tata Institute of Fundamental Research that not only have a strong local presence but also launch a unique strategic avenue to harness the local talent pool.
The business needs related to the mobility of goods, holding conferences, and getting easy global access can be well met by the facilities available at the Rajiv Gandhi International Airport in Hyderabad.
Most industries are linked to the service sector, such as biotech, technology, and pharmaceuticals. If your organisation attends to the service sector, Hyderabad can be your go-to option.
5. Nagpur
Nagpur boasts of the widest territorial boundaries within central India and enjoys the status of the third most densely inhabited city in Maharashtra. It plays a remarkable role in business, politics, and finance within the Vidarbha region. The locality presents plentiful chances to start or grow different types of businesses.
Hingana Industrial Estate accommodates over 800 MSMEs. With the presence of the Multimodal Cargo Hub and Airport in Nagpur, the city is very welcoming and convenient for businesses to start.
6. Indore
Indore was placed at the fourth position in 2020 in the ranking of cleanest cities in India by a yearly cleanliness survey conducted by the Government of India.
The survey places more emphasis on elevated sanitation quality parameters for measuring the lifestyle quality, and it reflects the government-backed agenda to transform Indore into a city driven by the economy. As it’s situated along the Mumbai-Delhi linkage zone, Indore is strategically connected to the national highway network.
Even if you’re not foregoing building a headquarters in Indore, it could turn out to be a high-value site for technology middle office and IT operations. The city hosts a few different institutions, including IIM Indore. This has been a big help in creating a constant flow of domain experts prepared to compete.
7. Bangalore or Bengaluru
People often think of Bangalore as the tech hub of India, kind of like its version of Silicon Valley.
It’s the biggest Information Technology (IT) exporter in the country, constituting a third of all software exports.
Bangalore aligns seamlessly with Indian National Highways and Railways. That’s a big plus for moving both goods and people around. The city also has the ability to raise a workforce that’s both technically adept and replete with new ideas.
So, Bangalore is a great spot for businesses that rely on technology. Businesses that do not rely heavily on technology are nestled within Bangalore to boost their processes and Systems.
8. Chennai
Chennai is geographically primed to facilitate market penetration into India’s South. Chennai – formerly Madras – anchors its place as a top city to establish your business if you want to know if your products and services can be used in the Southern region of India.
Chennai has a literacy exceeding 80%, indicating that finding the best talent will not be difficult.
Chennai made the list. This is because the city’s government has put in a lot of work building the SEZs and Software Technology Parks of India there. IIT Madras, located in Chennai, is thought of as one of the most respected IITs in India.
Bottom Line
To cherry-pick your favourite city for corporate presence all over India is a crucial determinant for your thriving business. Different cities have their own basket of benefits to proffer, such as a robust tech ecosystem in Bengaluru to Mumbai’s financial stronghold. Essentially, the macro-level view becomes clear around your specific business demand – reservoir of talent, strategic location, approval by the government – and then calibrating them with the avenues open in these townships.
India, in the form of a global economic player, continues to rise and the cities we have talked about are the ones leading this change. You can set your business on long-term success by carefully evaluating your options. The right city is not just a workplace – it is where your business will prosper. The time to make a move and explore which city is best for your business trip in India is now!
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