Best Indian Cities for business – Where should you start your business ?
By Manoj Govindassamy on 11 September, 2009, 1:15 am
Well, the entrepreneur culture is spreading in India. We see more entrepreneurs in India than a decade back. Thanks to globalization, Indians have come out their boxes and starting their own innovative businesses. Say, you want to start a business in India, do you know which are the best Indian Cities for your business. You shouldn’t make mistakes in picking the right place. If you make mistakes, you are bound to lose all your money faster.
I was looking at “Doing business in India” reports by World Bank and like to share the important data points with you guys. On the whole, India is not the country for doing business. It stands at 133rd position among the 183 business favourable countries (lower postion mean best place for business). But, within India, if we are to choose best cities for business, then Ludhiana, Hyderabad and Bhubaneshwar are the best picks for your business. The full list is here.
- Doing business is easier in Ludhiana, Hyderabad, and Bhubaneshwar. It is more difficult to start and operate a business in Kochi and Kolkata.
- The number of procedures to open a business ranges from 11 to 13, 8 of which are set nationally. Starting a business is fastest in Mumbai and Noida with 30 days and slowest in Kochi with 41 days. Business start up is least expensive in Patna at 38% of income per capita, while in Mumbai, the cost is almost twice as much
- The process to obtain construction-related permits and clearances is easiest in Bengaluru, Chennai and Hyderabad, where 15 procedures are required, but more cumbersome in Kolkata and Mumbai, where more than 30 procedures are needed. Cutting the time to the level of Hyderabad – 80 days – would put India ahead of Germany.
- Cities in India do well on the number of procedures required to register property – on average, only 5 procedures are needed. This performance ranks the average Indian city at 47th out of 181 economies.
- When compared internationally, Indian cities lag behind in the ease of enforcing contracts, closing a business and paying taxes.
- There are a lot of good local practices and cities can learn from each other. If a city in India were to adopt all best practices that already exist in the seven areas covered by the report, it would rank 67th out of 181 economies, improving India’s global ranking by 55 positions.
