Comparison of best Indian states to do business in 2024

INDIAN STATES AND UNION TERRITORIES DELHI MAHARASHTRA WEST BENGAL GUJARAT TAMIL NADU KARNATAKA
Quick summary
Preferred city for incorporation of the company? New Delhi Mumbai Kolkata Ahmedabad Chennai Bengaluru
Most popular business sector? Financial Services Pharmaceuticals Agriculture Agro & Food Processing Textiles & Automobile IT & ITeS
Specific attractive Government incentives available? Yes Yes Yes Yes Yes Yes
How many FTZs and EPZs available? 2 25 7 18 36 26
CBD monthly office rental per sq m? US$60 US$40 US$26 US$18 US$10 US$15
Average monthly warehouse rental per sq m? US$13 US$8 US$4 US$4 US$3 US$3
Average skilled labour monthly salary? US$780 US$700 US$680 US$675 US$425 US$750
Average unskilled labour monthly salary? US$180 US$150 US$150 US$150 US$120 US$180
Minimum monthly wage for local employees? US$156 US$140 US$136 US$135 US$84 US$150
English spoken by what % of population? 15% 30% 20% 15% 25% 25%
Computer literacy rate? (% of population) 63% 55% 45% 47% 45% 55%
Literacy rate? (% of population) 86% 82% 76% 78% 80% 75%
Proximity of sea port to the main city? 900km 7km 1.9km 109km 2.2km 263km
Proximity of airport in kilometres to the main city? 14Km 3km 12km 11km 19km 8km
Logistical considerations
Attractive State for a manufacturing business? Yes Yes Yes Yes Yes Yes
Attractive State for a e-business? Yes Yes Yes Yes Yes Yes
Attractive State for an export-oriented service business? Yes Yes Yes Yes Yes Yes
CBD monthly office rental per sq m? US$60 US$40 US$26 US$18 US$10 US$15
Average monthly warehouse rental per sq m? US$13 US$8 US$4 US$4 US$3 US$3
Average monthly electricity prices? (per Kwh) US$0.014 US$0.015 US$0.021 US$0.017 US$0.013 US$0.017
Hub for the headquarters of multi-national firms? Yes Yes No No Yes Yes
City airport with flights to Europe, Australia and America? Yes Yes No No No No
Proximity of rail in kilometres to the main city? 3km 4km 3km 2km 3km 4km
Number of international tourists? (in million) 2.4 4.4 1.4 0.3 4.6 0.6
Average annual inflation rate? 4% 4% 5% 5% 3% 4%
Average unemployment rate? 3.50% 2.30% 4.80% 0.80% 2.70% 2.90%
Quality of internet broadband and Wi-Fi? Good Good Fair Fair Fair Good
Total population? (in millions) 18 121 91 60 77 61
Local purchasing power (GDP per capita)? US$4,642 US$2,561 US$1,532 US$2,336 US$2,464 US$1,900
Business output market size? (in US$ billions) US$76 US$295 US$138 US$149 US$167 US$120
Market size relative to the economy? 3.73% 14.42% 6.75% 7.31% 8.16% 5.87%
Corporate Banking and Finance considerations
Is the main city a financial services hub? Yes Yes No No No No
How many global banks are based in the state? 15 25 8 5 7 8
How many Indian banks with local branches? 30 35 27 20 23 20
Recommended Bank for corporate banking? SCB HSBC Citibank HDFC DBS Barclays
Client must travel for account opening? No No No No No No
Quality of bank customer services? Good Good Good Good Good Good
Quality of online banking services? Good Good Good Good Good Good
English e-banking platform available? Yes Yes Yes Yes Yes Yes
Does the State have a reputable financial district? Yes Yes No No No No
Does the State have a local Stock Exchange? Yes Yes Yes Yes Yes Yes
Are there Private Equity Funds/VCs in the State? Yes Yes Yes Yes Yes Yes
Expatriate employment considerations
Average skilled labour monthly salary? US$780 US$700 US$680 US$675 US$425 US$750
Average unskilled labour monthly salary? US$180 US$150 US$150 US$150 US$120 US$180
Minimum monthly wage for local employees? US$156 US$140 US$136 US$135 US$84 US$150
Is there a large expatriate community in the main city? Yes Yes Yes Yes Yes Yes
International schools for children of expatriate employees? Yes Yes Yes Yes Yes Yes
General availability of bars and restaurants? Yes Yes Yes No Yes Yes
Will I find European F&B products in the supermarkets? Yes Yes No No Yes Yes
Mercer Survey Ranking for global cities? 161 152 160 No 150 No
Is the main city of the State safe for expatriates? Yes Yes Yes Yes Yes Yes
Accounting and tax considerations
Monthly and quarterly tax filing required? Yes Yes Yes Yes Yes Yes
Business incentives offered by the state government? Yes Yes Yes Yes Yes Yes
Average customs duty of export products? 6%
Average customs duty for imported products? 4%
Local VAT rate? 14%
Corporation tax rate for local companies? 30%
Corporation tax rate for foreign companies? 40%
Withholding tax on dividends to overseas shareholders? 20%
Average pension and insurance benefits (% of salary)? 12%
Mandatory labour unions? No
Minimum notice to dismiss employees? 1 month
Minimum redundancy indemnity? (for tenure of 1 year) 1 month
Time zone? (ahead of GMT) +5:30hrs

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