India’s State-Level Startup Policies: A Blueprint for Foreign VC and Accelerators

Posted on by iacindia

Introduction

India’s startup ecosystem is no longer concentrated in just a few metro cities. With over 30 Indian states now implementing their own startup policies, the landscape is more decentralised, diverse and investor-ready than ever. For foreign venture capital (VC) firms, corporate innovation arms and accelerators, these policies offer unique entry points to collaborate, invest and scale.

At the International Advisory Council (IAC), we work with international companies, funds and government agencies to identify high-growth opportunities within India’s state-level innovation frameworks and offer hands-on India market entry support.

The Importance of State-Level Startup Policies

India’s federal structure allows states to:

  • Design incentives tailored to local strengths
  • Establish incubators and innovation hubs
  • Offer tax benefits, grants and co-investment schemes
  • Provide in-country representation India for investor support
  • Launch sector-specific initiatives in EVs, biotech, AI and agritech

These policies complement central schemes like Startup India, enabling cross-border business promotion with clearer on-ground execution.

States Leading the Startup Revolution

1. Karnataka

  • Home to Bengaluru, India’s startup capital.
  • Karnataka Startup Policy 2022 includes funding support, mentorship networks and R&D grants.
  • Strong focus on deep tech, climate tech and biotech.

2. Telangana

  • Offers plug-and-play facilities through T-Hub and WE-Hub.
  • Preferred destination for healthtech and smart mobility startups.
  • Attracts foreign accelerators and startup funds via co-innovation initiatives.

3. Gujarat

  • Recognised as a top performer in DPIIT’s Startup Rankings.
  • Offers innovation grants, market access support and B2B matchmaking India for local startups.

4. Maharashtra

  • Mumbai’s financial hub makes it ideal for fintech and media-tech ventures.
  • The state’s policy promotes cross-border academic collaboration and innovation-focused education institutes.

5. Tamil Nadu

  • Policy focuses on hardware startups, electronics and auto tech.
  • Hosts startup warehouses, industrial accelerators and manufacturing-focused VC partnerships.

Why This Matters for Foreign VC & Accelerators

State-level support reduces operational risk and offers:

  • Subsidized office spaces and R&D labs
  • Market access programs via startup expos and education roadshows India
  • Regulatory ease with single-window clearances
  • Co-investment from government or state-backed venture funds
  • Academic partnerships India through university-linked incubation

This makes India’s states ideal launchpads for pilots, portfolio diversification and ecosystem building.

Case Study: US-Based Climate Tech Accelerator in Tamil Nadu

A US-based accelerator, targeting sustainable startups, worked with IAC to launch a program in Chennai. We:

  • Evaluated Tamil Nadu’s hardware innovation clusters
  • Coordinated with the State’s Startup Mission for infrastructure and grants
  • Identified 20 Indian climate-tech startups for the first cohort
  • Facilitated joint degree programs India and faculty support from a regional tech institute

Within 12 months, three Indian startups had raised seed rounds from international LPs.

IAC’s Role in Driving Startup Investment

At IAC, we:

  • Identify suitable states based on sector, policy strength and ecosystem maturity
  • Connect foreign VCs and accelerators with government startup missions
  • Manage in-country presence, scouting and co-branded events
  • Help build strategic communications and PR for international companies in India
  • Align accelerator goals with India higher education consulting partners

We also support IPAs and EDBs in promoting their own startup ecosystems to attract Indian capital and collaboration.

Sectors Gaining State Support in 2025

  • EV & battery tech: Tamil Nadu, Maharashtra
  • Deep tech & AI: Karnataka, Telangana
  • Health & medtech: Kerala, Gujarat
  • Agri-tech & food processing: Punjab, Odisha
  • Clean energy & climate tech: Rajasthan, Andhra Pradesh

Conclusion

India’s state-level startup policies are no longer experimental—they’re strategic blueprints tailored to global collaboration and capital inflows. For foreign VCs, accelerators and innovation firms, this is a timely opportunity to go local, scale fast and build the future.

With IAC as your partner, navigating this complex but rewarding landscape becomes seamless—and success becomes a matter of strategy, not chance.

India’s Bilateral Trade Agreements: How They Impact Foreign Investment Strategy

Posted on by iacindia

Introduction

In a global economy driven by interconnected supply chains, bilateral trade agreements (BTAs) have emerged as powerful tools for shaping investment decisions. India, now more assertive in its trade diplomacy, has signed and is negotiating several BTAs aimed at expanding its economic footprint and attracting foreign direct investment (FDI).

For international companies exploring or expanding their India market entry, understanding these trade agreements is crucial for identifying cost advantages, compliance ease and cross-border business promotion opportunities.

Why Trade Agreements Matter to Investors

Bilateral trade agreements do more than reduce tariffs. They:

  • Provide preferential market access for goods and services
  • Establish intellectual property and digital trade frameworks
  • Enable cross-border capital flows and investor protection
  • Facilitate movement of skilled professionals and students
  • Increase confidence and predictability in long-term market strategies

These directly impact the feasibility and profitability of business setup in India or sourcing from India.

India’s Major Trade Agreements and Their Impact

1. India–UAE Comprehensive Economic Partnership Agreement (CEPA)

  • Eliminated duties on 90% of goods
  • Boosts bilateral trade to over $100 billion
  • Enables smoother logistics, especially for gems, textiles and electronics
  • Opens investment routes for UAE-based funds and family offices

2. India–Australia Economic Cooperation and Trade Agreement (ECTA)

  • Zero duties on 85% of Indian exports to Australia
  • Covers services, especially ed-tech, fintech and higher education
  • Enhances scope for academic partnerships India and student mobility
  • Encourages Australian investment in clean energy and agri-tech

3. Ongoing Negotiations

  • India–UK FTA: Focus on financial services, legal reforms and sustainable energy
  • India–EU FTA: Digital trade, carbon neutrality, pharmaceuticals and data regulation
  • India–Canada CEPA: Mobility for professionals and Indian diaspora linkages

When concluded, these agreements will dramatically enhance FDI attraction services India and in-country investor outreach Asia.

Strategic Advantage for Foreign Companies

Companies based in treaty-partner countries enjoy:

  • Lower import duties for setting up operations or sourcing from India
  • Simplified visa and workforce mobility protocols
  • Streamlined customs and compliance norms
  • Access to trade facilitation and dispute resolution channels
  • Opportunity to become part of India’s regional supply chains

These translate to faster, cheaper and more resilient India market entry support.

Role of IAC in Trade-Linked Investment Planning

At IAC, we:

  • Identify investment routes and exemptions based on bilateral treaties
  • Offer sector-specific breakdowns of trade agreement benefits
  • Support strategic positioning of EDBs and IPAs during negotiations
  • Facilitate India delegation support and government engagement
  • Craft tailored investor communications aligned with bilateral trade developments

What to Watch in 2026

  • India’s deeper engagement in Indo-Pacific trade platforms
  • Expansion of mobility provisions in services and education
  • Trade-led incentives for manufacturing, pharmaceuticals and digital goods

Conclusion

India’s expanding web of bilateral trade agreements reflects a more open and globally aligned investment strategy. For foreign companies, they are not just about trade—they are strategic entry points to expand business in India, access incentives and build lasting partnerships.

With IAC as your guide, these agreements become more than policy—they become platforms for execution.

From Policy to Execution: How India is Creating an Investor-Friendly Environment

Posted on by iacindia

Introduction

India’s ascent as a global investment destination isn’t just the result of high GDP growth or a large consumer market it’s increasingly due to its clear, action-oriented investment policies and improved execution frameworks. Today, foreign investors are seeing not only big-picture reforms but also on-ground changes that make doing business in India easier, faster and more profitable.

At the International Advisory Council (IAC), we help international companies, EDBs and IPAs interpret and leverage these developments with targeted India market entry support and cross-border investment promotion strategies.

Key Reforms that Attract Foreign Investment

1. Ease of Doing Business Reforms

India has removed archaic laws and simplified over 1,500 compliance requirements:

  • Online company registration in under 3 days
  • Decriminalisation of minor business offences
  • Unified portal for labour, tax and environmental filings
  • Transparent e-auctions for land and tenders

These reforms are helping foreign companies set up in India without prolonged bureaucratic delays.

2. National Single Window System (NSWS)

Launched to serve as a one-stop digital platform, the NSWS integrates approvals from 26 central departments and 19 states, allowing investors to:

  • Apply for permits and licenses online
  • Track application status in real-time
  • Reduce duplicative documentation

This is a major shift from policy intent to execution excellence, aligning with global investor expectations.

3. FDI Liberalisation Across Sectors

India has raised FDI caps or permitted 100% FDI via automatic routes in sectors such as:

  • Defence manufacturing (74%)
  • Insurance (74%)
  • Telecom (100%)
  • E-commerce and single-brand retail (100%)
  • Renewable energy (100%)

This opens new doors for strategic foreign investment, technology transfer and joint ventures.

Central and State-Level Synergy

The key to effective investment facilitation is alignment between the Centre and States. Many states now offer:

  • Single-window clearance
  • Customised incentive packages
  • Sector-specific industrial policies
  • In-country representation for international companies
  • Fast-tracked land acquisition and infrastructure development

This synergy ensures that India’s policy reforms translate into results on the ground.

Case Study: Mid-Sized UK Manufacturer in Telangana

A UK-based industrial pump company explored India as a secondary manufacturing base. With IAC’s support:

  • They applied through the NSWS for initial clearances
  • Secured land in a pre-cleared Telangana industrial park
  • Accessed a 15% CAPEX subsidy and 100% SGST reimbursement
  • Began operations within 9 months of market entry

IAC also managed their local PR strategy and introduced them to B2B partners in India.

IAC’s Role: Translating Policy into Opportunity

At IAC, we support:

  • Mapping investment incentives and reforms by sector and state
  • Assisting with regulatory filings and compliance
  • Navigating government engagement through in-country representation India
  • Managing entry communications, media and investor positioning
  • Supporting IPAs in aligning with India’s reform narrative for bilateral promotion

Key Trends to Watch

  • Digitisation of government approvals will continue to reduce entry friction
  • Sector-focused campaigns in semiconductors, defence, renewables and medtech
  • New investment roadshows India organized by both national and state agencies
  • Expansion of PLI schemes linked to ease-of-doing-business benchmarks

Conclusion

India’s journey from policy announcements to on-ground execution is finally materialising and investors are taking note. With streamlined processes, stronger infrastructure and proactive governance, India is no longer just a promising market it is an executable one.

At IAC, we help you move from curiosity to commitment, from strategy to setup. Because when policy meets execution, investment meets impact.

The Rise of India’s Tier 2 Cities: New Investment Hotspots for Global Businesses

Posted on by iacindia

Introduction

While Mumbai, Delhi and Bengaluru have long dominated India’s investment narrative, the next wave of economic growth is being powered by Tier 2 cities. These emerging hubs offer cost-effective operations, pro-business state policies and untapped talent pools, making them ideal destinations for international companies seeking India market entry support.

At the International Advisory Council (IAC), we help investors spot high-growth regions and craft tailored entry strategies, especially in cities that are often overlooked but full of potential.

What Are Tier 2 Cities?

Tier 2 cities in India are mid-sized urban centers with rapidly developing infrastructure, strong educational institutions and rising income levels. These include:

  • Ahmedabad, Surat, Indore, Nagpur, Coimbatore
  • Chandigarh, Lucknow, Bhubaneswar, Jaipur and Visakhapatnam

Once considered secondary markets, these cities are now front and center in India’s economic transformation.

Why Global Businesses Are Choosing Tier 2 Cities

1. Lower Operational Costs

Real estate, logistics and manpower costs in Tier 2 cities can be 30–40% lower than metro areas ideal for business setup in India.

2. Growing Infrastructure

Under schemes like Smart Cities Mission, these cities are developing:

  • Integrated industrial townships
  • Modern airports and logistics parks
  • Smart transport and urban governance systems

This makes cross-border business promotion and last-mile connectivity more efficient.

3. Skilled Workforce and Academic Institutions

Tier 2 cities house renowned engineering and management colleges, fueling a young, trainable workforce that appeals to foreign employers and B2B service companies.

Top Sectors Thriving in Tier 2 Cities

  • Manufacturing and Auto Components: Pune, Coimbatore, Vadodara
  • IT and SaaS: Kochi, Indore, Chandigarh
  • E-commerce and Warehousing: Jaipur, Lucknow, Bhubaneswar
  • Agri-tech and Food Processing: Nagpur, Ludhiana, Raipur
  • Tourism and Hospitality: Udaipur, Mysuru, Amritsar

Each region also receives sector-focused investment campaigns from its state government and IPA.

Case Study: European BPO Expands to Indore

A mid-sized European BPO firm worked with IAC to expand its presence in India. Instead of Bangalore, they selected Indore due to:

  • 40% lower rental and salary costs
  • Proximity to client cities like Mumbai and Delhi
  • Fast digital infrastructure and smart city support

IAC supported the entire process from site visits to in-country representation India resulting in a lean, profitable operation that now supports four EU languages.

IAC’s Support in Tier 2 Market Entry

We assist companies by:

  • Mapping ideal Tier 2 cities based on sector and logistics
  • Coordinating with state-level IPAs and EDBs
  • Identifying potential partners for B2B matchmaking India
  • Providing on-ground support through our India investment facilitation services
  • Managing PR for international companies entering smaller cities

We also advise foreign IPAs on promoting Tier 2 Indian cities as trade partners or sourcing hubs.

Emerging Investment Hotspots to Watch

  • Surat: Fastest-growing city by GDP; thriving in textiles and diamonds
  • Lucknow: Defence and electronics hub; part of UP’s defence corridor
  • Coimbatore: EV component manufacturing and technical textiles
  • Vizag: Port-led development and fintech ecosystem
  • Chandigarh: IT and SaaS, with high living standards for foreign expats

Conclusion

India’s Tier 2 cities represent the future of inclusive, decentralised growth. They offer access without congestion, talent without churn and value without compromise. For global businesses looking to scale with speed and sustainability, these cities are the new frontier.

At IAC, we help you make confident, data-driven decisions about where and how to invest in India’s next-generation markets.

Why Industrial Corridors Like DMIC and CBIC Are Magnetizing Global Investment

Posted on by iacindia

Introduction

India’s push for integrated industrial development has taken a monumental step through the creation of industrial corridors large-scale infrastructure projects that connect key production and consumption centres across the country. Among these, the Delhi-Mumbai Industrial Corridor (DMIC) and the Chennai-Bengaluru Industrial Corridor (CBIC) stand out as game-changers.

These corridors offer plug-and-play industrial zones, world-class logistics infrastructure and access to global markets. For international companies seeking long-term India market entry support, these corridors represent the next frontier of cross-border business promotion and FDI attraction.

What Are Industrial Corridors?

Industrial corridors are large infrastructure development zones planned along major transportation routes. They integrate:

  • Multi-modal logistics hubs (road, rail, air and ports)
  • Smart industrial cities and zones
  • Power and water utilities
  • Skill development centres
  • Export-oriented infrastructure like SEZs and FTWZs (Free Trade & Warehousing Zones)

They are built with both central and state participation, often with multilateral funding (e.g., Japan International Cooperation Agency, ADB).

Key Industrial Corridors in Focus

1. Delhi-Mumbai Industrial Corridor (DMIC)

  • Covers 1,500 km with 8 major industrial nodes across 6 states.
  • Focus sectors: Electronics, auto, defence, logistics, textiles.
  • Features smart cities like Dholera (Gujarat) and Greater Noida (UP).
  • Offers land parcels, pre-cleared units and integrated services.

2. Chennai-Bengaluru Industrial Corridor (CBIC)

  • Spanning Karnataka, Tamil Nadu and Andhra Pradesh.
  • Key sectors: Aerospace, EVs, IT hardware and electronics.
  • Emphasizes coastal and inland logistics for exports.
  • Linked to three major ports and multiple industrial clusters.

Other corridors include:

  • Amritsar-Kolkata Industrial Corridor (AKIC)
  • East Coast Economic Corridor (ECEC)
  • Hyderabad-Warangal-Kurnool Corridor

Why These Corridors Attract Global Investment

1. Ready Infrastructure for Fast Market Entry

Corridors offer pre-cleared industrial zones with plug-and-play infrastructure dramatically reducing setup timelines for foreign firms.

2. Logistics Advantage

Their proximity to ports, airports and major consumption markets enhances supply chain efficiency and export competitiveness.

3. Sector-Specific Clusters

Each corridor targets specific industries, creating an ecosystem of suppliers, workforce and regulatory frameworks tailored for those sectors.

4. State and Central Support

These zones come with fiscal incentives, ease-of-business reforms and access to FDI attraction services India via both IPAs and EDBs.

Case Study: Southeast Asian Electronics Firm in DMIC

A leading electronics component manufacturer from Southeast Asia collaborated with IAC to explore India. We:

  • Identified a 100-acre site in Dholera Special Investment Region (DSIR)
  • Coordinated with the DMICDC (DMIC Development Corporation) for clearances
  • Structured incentives including CAPEX subsidy and training grants
  • Facilitated B2B matchmaking India with Indian assemblers and logistics providers

The plant was commissioned in 12 months, producing for both Indian and Middle Eastern markets.

Role of IAC in Corridor-Driven Entry Strategy

At IAC, we:

  • Map your sector to the right industrial corridor
  • Facilitate land and infrastructure selection
  • Connect with local and central investment promotion agencies
  • Offer in-country representation India for real-time execution
  • Assist in regulatory, ESG and PR readiness for your India entry

We also help foreign EDBs and IPAs promote their ecosystems in collaboration with India’s corridor-based investment platforms.

Key Sectors for Corridor-Based Investment

  • Auto and EV components
  • Electronics and semiconductors
  • Textile and technical apparel
  • Green hydrogen and clean energy
  • Pharmaceuticals and logistics

Conclusion

India’s industrial corridors are not just real estate they are engines of export-led, policy-driven growth. For global businesses, they offer the rare mix of speed, scale and certainty.

With IAC by your side, you can be part of India’s industrial transformation strategically, swiftly and sustainably.

Which Indian States Are Leading in Investment Incentives for Foreign Firms?

Posted on by iacindia

Introduction

India’s transformation into a global investment hub is not just powered by central policies but significantly driven by its states. With competitive incentive packages, sector-specific policies and dedicated investment cells, Indian states are actively courting foreign companies.

For international firms looking to expand business in India, understanding the regional landscape is essential. At the International Advisory Council (IAC), we help navigate these subnational opportunities and align clients with state-level investment promotion agencies, ensuring a smoother and more strategic India market entry.

Why State-Level Incentives Matter

India operates under a federal structure, where states enjoy considerable autonomy over industrial policies, land allocation, taxation and labour rules. This has sparked a “race to the top” among states to attract foreign direct investment (FDI), resulting in investor-friendly ecosystems.

Some states go beyond the central government’s offerings by:

  • Subsidizing capital and land
  • Offering sector-specific tax rebates
  • Setting up single-window clearance systems
  • Running business delegation India programs abroad

Top Investment-Friendly States for Global Firms

1. Maharashtra

  • India’s most industrialized state, home to Mumbai, Pune and Nagpur.
  • Focus sectors: Auto, EVs, aerospace, fintech and logistics.
  • Offers: Stamp duty exemption, electricity duty waivers, capital subsidies.
  • Hosts MIDC (Maharashtra Industrial Development Corporation) for business setup India support.

2. Tamil Nadu

  • A manufacturing powerhouse, especially for textiles, EVs and electronics.
  • Offers tailored packages under the Industrial Policy 2021.
  • Foreign players benefit from high ease of doing business and skilled workforce.
  • State has strong ties with Japanese, Korean and German investors.

3. Gujarat

  • The state of choice for petrochemicals, semiconductors and logistics.
  • Known for hosting the Vibrant Gujarat Global Summit, a major FDI platform.
  • Offers plug-and-play parks and special export zones.
  • Gujarat is proactive in cross-border investment promotion via its IPA-iNDEXTb.

4. Karnataka

  • Bengaluru leads in IT, deeptech and startups.
  • Government actively promotes innovation zones and R&D incentives.
  • Startups receive land rebates, seed funding support and patent grants.
  • Ideal for foreign VCs, R&D labs and academic partnerships India.

5. Uttar Pradesh

  • India’s most populous state and a rising industrial force.
  • Focus sectors: Electronics, defence, textiles and warehousing.
  • Offers capital interest subsidies, training incentives and mega investment policies.
  • Location advantage for North India market access.

Sectors Driving State Competition

  • Electric Vehicles: Maharashtra, Tamil Nadu and Gujarat lead the EV policy wave.
  • Renewables: Rajasthan and Gujarat are ramping up green energy incentives.
  • Semiconductors: UP and Gujarat are front-runners under India’s chip strategy.
  • Agri-tech and Food Processing: Punjab and MP offer tailored policies for agri-investment.

These sectors are supported by FDI attraction services India and sector-focused investment campaigns run at both state and central levels.

IAC’s Role in Navigating State Incentives

At IAC, we help:

  • Compare and assess state-wise incentive packages
  • Facilitate dialogues with regional Investment Promotion Agencies
  • Identify industrial parks, logistics corridors and export zones
  • Structure incentive applications for foreign companies entering India
  • Coordinate with in-country representation India partners for execution

We also assist EDBs looking to align their promotional strategies with India’s state-level demand trends.

Case Study: EU-Based Auto Component Manufacturer

An automotive components firm from Europe chose Tamil Nadu over two other states due to:

  • A customized package offered via the Single Window Portal
  • Immediate land allotment near Chennai port
  • IAC’s support in negotiating workforce training subsidies

The plant now exports to Southeast Asia and employs 300+ people locally.

Conclusion

When it comes to FDI in India, location matters and so does alignment with state-level priorities. Each Indian state offers a unique mix of infrastructure, incentives and talent. For global businesses, the key is to find the right fit and act fast.

With IAC as your guide, you don’t just pick a destination; you invest in a competitive, future-ready strategy.

Which Indian States Are Leading in Investment Incentives for Foreign Firms?

Introduction

India’s transformation into a global investment hub is not just powered by central policies but significantly driven by its states. With competitive incentive packages, sector-specific policies and dedicated investment cells, Indian states are actively courting foreign companies.

For international firms looking to expand business in India, understanding the regional landscape is essential. At the International Advisory Council (IAC), we help navigate these subnational opportunities and align clients with state-level investment promotion agencies, ensuring a smoother and more strategic India market entry.

Why State-Level Incentives Matter

India operates under a federal structure, where states enjoy considerable autonomy over industrial policies, land allocation, taxation and labour rules. This has sparked a “race to the top” among states to attract foreign direct investment (FDI), resulting in investor-friendly ecosystems.

Some states go beyond the central government’s offerings by:

  • Subsidizing capital and land
  • Offering sector-specific tax rebates
  • Setting up single-window clearance systems
  • Running business delegation India programs abroad

Top Investment-Friendly States for Global Firms

1. Maharashtra

  • India’s most industrialized state, home to Mumbai, Pune and Nagpur.
  • Focus sectors: Auto, EVs, aerospace, fintech and logistics.
  • Offers: Stamp duty exemption, electricity duty waivers, capital subsidies.
  • Hosts MIDC (Maharashtra Industrial Development Corporation) for business setup India support.

2. Tamil Nadu

  • A manufacturing powerhouse, especially for textiles, EVs and electronics.
  • Offers tailored packages under the Industrial Policy 2021.
  • Foreign players benefit from high ease of doing business and skilled workforce.
  • State has strong ties with Japanese, Korean and German investors.

3. Gujarat

  • The state of choice for petrochemicals, semiconductors and logistics.
  • Known for hosting the Vibrant Gujarat Global Summit, a major FDI platform.
  • Offers plug-and-play parks and special export zones.
  • Gujarat is proactive in cross-border investment promotion via its IPA-iNDEXTb.

4. Karnataka

  • Bengaluru leads in IT, deeptech and startups.
  • Government actively promotes innovation zones and R&D incentives.
  • Startups receive land rebates, seed funding support and patent grants.
  • Ideal for foreign VCs, R&D labs and academic partnerships India.

5. Uttar Pradesh

  • India’s most populous state and a rising industrial force.
  • Focus sectors: Electronics, defence, textiles and warehousing.
  • Offers capital interest subsidies, training incentives and mega investment policies.
  • Location advantage for North India market access.

Sectors Driving State Competition

  • Electric Vehicles: Maharashtra, Tamil Nadu and Gujarat lead the EV policy wave.
  • Renewables: Rajasthan and Gujarat are ramping up green energy incentives.
  • Semiconductors: UP and Gujarat are front-runners under India’s chip strategy.
  • Agri-tech and Food Processing: Punjab and MP offer tailored policies for agri-investment.

These sectors are supported by FDI attraction services India and sector-focused investment campaigns run at both state and central levels.

IAC’s Role in Navigating State Incentives

At IAC, we help:

  • Compare and assess state-wise incentive packages
  • Facilitate dialogues with regional Investment Promotion Agencies
  • Identify industrial parks, logistics corridors and export zones
  • Structure incentive applications for foreign companies entering India
  • Coordinate with in-country representation India partners for execution

We also assist EDBs looking to align their promotional strategies with India’s state-level demand trends.

Case Study: EU-Based Auto Component Manufacturer

An automotive components firm from Europe chose Tamil Nadu over two other states due to:

  • A customized package offered via the Single Window Portal
  • Immediate land allotment near Chennai port
  • IAC’s support in negotiating workforce training subsidies

The plant now exports to Southeast Asia and employs 300+ people locally.

Conclusion

When it comes to FDI in India, location matters and so does alignment with state-level priorities. Each Indian state offers a unique mix of infrastructure, incentives and talent. For global businesses, the key is to find the right fit and act fast.

With IAC as your guide, you don’t just pick a destination; you invest in a competitive, future-ready strategy.

How India’s Startup Ecosystem and FDI Relaxations Support Foreign Venture Capital

Posted on by iacindia

Introduction

India has emerged as the world’s third-largest startup ecosystem, with over 110,000 startups and 100+ unicorns as of 2025. Fuelled by digital transformation, government support and global investor interest, the startup landscape offers fertile ground for foreign venture capital (VC), private equity and strategic investors.

India’s relaxed Foreign Direct Investment (FDI) norms and investor-friendly policies make it easier than ever for international players to participate in its innovation boom. At the International Advisory Council (IAC), we help investors explore these opportunities, providing tailored India market entry support and strategic insights.

Why India’s Startup Ecosystem is Attractive to Foreign Investors

1. Liberalised FDI Norms

India allows 100% FDI via the automatic route in most startup-relevant sectors like:

  • Technology and SaaS
  • E-commerce
  • Fintech and Insurtech
  • Edtech and Healthtech
  • Green energy and agri-tech

The ease of entry reduces friction for global funds and strategic investors.

2. Regulatory Sandboxes

The Reserve Bank of India (RBI), SEBI and other regulators operate regulatory sandboxes for fintech, blockchain and digital banking innovations. This offers a controlled yet flexible environment for pilot projects, attracting global innovators and investors alike.

3. Startup India Initiative

Through the Startup India program, the government offers:

  • Tax holidays and faster IP registration
  • Access to Fund of Funds for co-investments
  • Support for international patent filings and global exposure
  • Dedicated startup cells in state governments

These initiatives significantly reduce operational and legal overheads for both startups and investors.

Where Venture Capital is Flowing

Key verticals seeing active foreign VC participation include:

  • Fintech: Driven by UPI, open banking and digital lending
  • Healthtech: AI-driven diagnostics, telemedicine, wellness platforms
  • Climate tech: Clean mobility, carbon tech, energy storage
  • Enterprise SaaS: Automation, HR tech, cybersecurity, analytics
  • Deep tech: Drones, space-tech, quantum computing, IoT

India’s maturing startup market is seeing more late-stage deals, while Tier-2 and Tier-3 cities are producing next-gen innovation hubs.

Strategic Role of IAC in Venture-Focused Market Entry

At IAC, we support venture funds, corporate VC arms and global accelerators in:

  • Navigating investment guidelines and SEBI regulations
  • Identifying high-potential Indian startups aligned to their portfolio thesis
  • Conducting cross-border business promotion and startup scouting events
  • Facilitating B2B matchmaking India with startups, incubators and state innovation agencies
  • Setting up local presence through in-country representation India

We also assist IPAs and EDBs that want to connect their local startups with India-based investors and accelerators.

Case Study: Middle East Fund Enters India’s Climate Tech Market

A $150 million climate-focused fund from the UAE approached IAC to enter India. We:

  • Identified 12 pre-Series A startups in clean mobility and energy
  • Organized a virtual India delegation with founders and policy experts
  • Supported the legal setup of their India fund entity
  • Connected them with a government-led green innovation challenge

Outcome: 3 investments made, with a pipeline of 7 more by Q4 2025.

Key Entry Points for Foreign VC & PE Firms

  1. Direct Investment in Startups
  2. Setting Up an India-Based Fund Entity
  3. Co-Investment with Indian Funds or Government Schemes
  4. Corporate Accelerators or Innovation Labs in India

India’s vibrant academic partnerships and education roadshows also attract university-affiliated VC arms and R&D centers.

Conclusion

India’s startup ecosystem is dynamic, scalable and increasingly global. For foreign investors, this is the perfect time to participate in the next chapter of innovation. From fintech to deep tech and from metros to smaller towns—opportunity abounds.

IAC stands ready to connect you with India’s brightest startups and support you every step of the way—from strategy to setup to scale.

Green Growth in India: New Incentives for Clean Energy and ESG-Driven Investment

Posted on by iacindia

Introduction

As the world accelerates toward a sustainable future, India has positioned itself as a leading destination for clean energy investment. With ambitious climate goals, robust policies, and sectoral incentives, the country is opening vast opportunities for foreign investors, especially those prioritizing ESG (Environmental, Social, Governance) metrics.

At the International Advisory Council (IAC), we help international companies, EDBs, and IPAs align their goals with India’s evolving green economy, offering hands-on India investment facilitation and cross-border business promotion in high-potential clean energy sectors.

India’s Green Growth Vision

India aims to:

  • Achieve 500 GW of non-fossil fuel energy capacity by 2030
  • Reach net-zero carbon emissions by 2070
  • Electrify its transport sector and decarbonize manufacturing
  • Make India a global hub for green hydrogen, solar PV, and EVs

These goals are supported by policies and incentives that lower the barriers for business setup in India across clean energy value chains.

Key Government Incentives for Green Investment

1. PLI Schemes for Solar and Battery Storage

The Production-Linked Incentive (PLI) schemes offer billions in incentives to firms that manufacture:

  • High-efficiency solar PV modules
  • Advanced chemistry cell (ACC) batteries
  • EV components and power electronics

Foreign firms are encouraged to apply and set up green tech facilities under joint ventures or independently.

2. Green Hydrogen Mission

With a budget of ₹19,744 crore, the National Green Hydrogen Mission aims to make India a global hub for the production and export of green hydrogen and its derivatives.

This is a major pull for clean energy startups, electrolyzer manufacturers, and international chemical companies seeking India market entry support.

3. Faster Clearances and Single-Window Systems

The National Single Window System (NSWS) now includes green project approvals, making it easier to secure environmental and land permits.

Sectors Ripe for Foreign Investment

  • Solar & Wind Energy: Project development, EPC, and component manufacturing
  • Electric Vehicles: Battery packs, charging infrastructure, software integration
  • Green Buildings: Materials, certification platforms, smart grid technologies
  • Carbon Markets: ESG consulting, credit trading, emission management platforms

ESG Compliance: A Strategic Advantage in India

India’s regulators and investors are embracing ESG. Stock exchanges now mandate ESG disclosures, and international capital increasingly flows toward sustainable businesses. Foreign firms entering India with robust ESG strategies:

  • Gain faster investor traction
  • Attract government and multilateral support
  • Build long-term reputational value

At IAC, we help investors craft ESG-aligned proposals and connect them with relevant sector-focused investment campaigns in India.

Real-World Snapshot: APAC Clean Energy Fund

An APAC-based green energy fund worked with IAC to explore solar manufacturing in India. We:

  • Aligned the project with PLI scheme criteria
  • Connected them with Indian EPC firms through B2B matchmaking India
  • Managed in-country representation India to handle permits, CSR, and PR
  • Helped them participate in a national investment roadshow for clean tech

The result: A 30 MW solar panel facility in Gujarat, with plans to expand capacity in 2026.

How IPAs and EDBs Can Collaborate

Foreign IPAs and EDBs can co-host sustainable investment delegations with IAC, showcasing India’s green growth story to investors in their regions. We also assist in:

  • Crafting ESG-aligned investment promotion materials
  • Organizing India delegation support for cleantech sectors
  • Curating virtual and in-person roundtables for green investors from India

Conclusion

India’s green growth momentum is real—and global investors stand to benefit from its scale, policy clarity, and innovation-friendly ecosystem. Whether you’re a manufacturer, fund, or technology partner, the opportunities are rich and expanding.

At IAC, we bridge the gap between India’s sustainability goals and your strategic interests—turning environmental action into business opportunity.

Green Growth in India: New Incentives for Clean Energy and ESG-Driven Investment

Introduction

As the world accelerates toward a sustainable future, India has positioned itself as a leading destination for clean energy investment. With ambitious climate goals, robust policies and sectoral incentives, the country is opening vast opportunities for foreign investors, especially those prioritizing ESG (Environmental, Social, Governance) metrics.

At the International Advisory Council (IAC), we help international companies, EDBs and IPAs align their goals with India’s evolving green economy, offering hands-on India investment facilitation and cross-border business promotion in high-potential clean energy sectors.

India’s Green Growth Vision

India aims to:

  • Achieve 500 GW of non-fossil fuel energy capacity by 2030
  • Reach net-zero carbon emissions by 2070
  • Electrify its transport sector and decarbonize manufacturing
  • Make India a global hub for green hydrogen, solar PV and EVs

These goals are supported by policies and incentives that lower the barriers for business setup in India across clean energy value chains.

Key Government Incentives for Green Investment

1. PLI Schemes for Solar and Battery Storage

The Production-Linked Incentive (PLI) schemes offer billions in incentives to firms that manufacture:

  • High-efficiency solar PV modules
  • Advanced chemistry cell (ACC) batteries
  • EV components and power electronics

Foreign firms are encouraged to apply and set up green tech facilities under joint ventures or independently.

2. Green Hydrogen Mission

With a budget of ₹19,744 crore, the National Green Hydrogen Mission aims to make India a global hub for the production and export of green hydrogen and its derivatives.

This is a major pull for clean energy startups, electrolyzer manufacturers and international chemical companies seeking India market entry support.

3. Faster Clearances and Single-Window Systems

The National Single Window System (NSWS) now includes green project approvals, making it easier to secure environmental and land permits.

Sectors Ripe for Foreign Investment

  • Solar & Wind Energy: Project development, EPC and component manufacturing
  • Electric Vehicles: Battery packs, charging infrastructure, software integration
  • Green Buildings: Materials, certification platforms, smart grid technologies
  • Carbon Markets: ESG consulting, credit trading, emission management platforms

ESG Compliance: A Strategic Advantage in India

India’s regulators and investors are embracing ESG. Stock exchanges now mandate ESG disclosures and international capital increasingly flows toward sustainable businesses. Foreign firms entering India with robust ESG strategies:

  • Gain faster investor traction
  • Attract government and multilateral support
  • Build long-term reputational value

At IAC, we help investors craft ESG-aligned proposals and connect them with relevant sector-focused investment campaigns in India.

Real-World Snapshot: APAC Clean Energy Fund

An APAC-based green energy fund worked with IAC to explore solar manufacturing in India. We:

  • Aligned the project with PLI scheme criteria
  • Connected them with Indian EPC firms through B2B matchmaking India
  • Managed in-country representation India to handle permits, CSR and PR
  • Helped them participate in a national investment roadshow for clean tech

The result: A 30 MW solar panel facility in Gujarat, with plans to expand capacity in 2026.

How IPAs and EDBs Can Collaborate

Foreign IPAs and EDBs can co-host sustainable investment delegations with IAC, showcasing India’s green growth story to investors in their regions. We also assist in:

  • Crafting ESG-aligned investment promotion materials
  • Organizing India delegation support for cleantech sectors
  • Curating virtual and in-person roundtables for green investors from India

Conclusion

India’s green growth momentum is real—and global investors stand to benefit from its scale, policy clarity and innovation-friendly ecosystem. Whether you’re a manufacturer, fund, or technology partner, the opportunities are rich and expanding.

At IAC, we bridge the gap between India’s sustainability goals and your strategic interests—turning environmental action into business opportunity.

Understanding India’s New Digital Personal Data Protection Act: Opportunities and Risks for Tech Investors

Posted on by iacindia

Introduction

As the world grows increasingly data-driven, regulatory landscapes are evolving to ensure user privacy and data governance. India, home to over 800 million internet users, has taken a major step with the enactment of the Digital Personal Data Protection (DPDP) Act, 2023. For international companies and investors looking at India market entry, especially in tech, SaaS, fintech and digital services, understanding this law is crucial.

At the International Advisory Council (IAC), we help global investors navigate India’s legal frameworks, balance compliance with opportunity and unlock growth in one of the world’s most dynamic digital economies.

What is the DPDP Act?

The DPDP Act governs the collection, processing and storage of personal data of individuals. Key highlights include:

  • Consent-based data processing
  • Obligations for data fiduciaries (companies that process personal data)
  • Rights of individuals over their data
  • Cross-border data transfer provisions
  • Financial penalties for non-compliance (up to ₹250 crore per violation)

The Act aligns India with global norms such as the EU’s GDPR and provides a clear framework for digital business operations.

Why This Matters for Foreign Investors

1. Legal Clarity = Lower Risk

Until recently, India’s data laws were fragmented. The new Act provides legal certainty for companies planning to invest in or expand digital operations in India. For tech companies entering India, this is a key de-risking factor.

2. Cross-Border Data Transfers Now Permitted

The Act allows personal data to be transferred to countries or territories notified by the Indian government removing a major obstacle for international SaaS, cloud and e-commerce businesses.

3. Boost to Data Infrastructure and Services

With stricter compliance needs, demand for local data centers, cybersecurity tools and audit services will rise creating new investment opportunities in India’s digital infrastructure ecosystem.

Sector-Wise Impact

  • Fintech & SaaS: Need for secure cloud infrastructure, consent management systems and encrypted data practices.
  • E-commerce & Retail: New standards for storing user preferences, purchase data and customer communications.
  • Healthcare & Edtech: Sensitive data processing regulations will require additional layers of protection and reporting.

For all these sectors, in-country representation in India becomes essential for risk management, stakeholder engagement and real-time compliance.

IAC’s Role: Enabling Compliant Market Entry

At IAC, we provide:

  • Legal ecosystem mapping for tech investors
  • Support in localising data practices to Indian standards
  • Identification of regional data partners and cloud vendors
  • Compliance frameworks for business setup in India
  • Strategic communication with data protection boards and regulators

We also advise IPAs and EDBs on how to showcase their tech ecosystem’s compliance readiness to attract Indian investors.

Real-World Snapshot: EU-Based HealthTech Startup

A European healthtech firm offering AI-based diagnostics wanted to enter the Indian market but was unsure about data compliance. IAC:

  • Evaluated their data flow structure against Indian norms
  • Advised on setting up a local data processor in Hyderabad
  • Introduced legal partners for documentation and consent architecture
  • Guided through onboarding with India’s data compliance sandbox

The firm is now live in two metro cities and part of India’s growing AI-medtech ecosystem.

Strategic Advantages for Investors

While compliance may appear burdensome, it actually offers:

  • Brand differentiation: Companies that prioritize privacy gain consumer trust
  • Early mover advantage: Especially for firms in sectors like digital health, SaaS and edtech
  • Policy alignment: Helps investors tap into India’s digital public infrastructure like Aadhaar, UPI and ONDC

Conclusion

India’s DPDP Act signals a mature and responsible digital economy one that invites foreign investment with transparency and accountability. For global firms ready to comply, this is an opportunity to enter a billion-user market and contribute to the next generation of digital innovation in Asia.

IAC is your trusted partner in navigating this landscape. With the right guidance, compliance becomes a launchpad, not a roadblock.

How India’s Gati Shakti Master Plan Enhances Infrastructure-Led Investment

Posted on by iacindia

Introduction

Infrastructure is the backbone of any thriving economy and India is building a formidable one. Launched in October 2021, the PM Gati Shakti National Master Plan aims to revolutionize how infrastructure is planned, executed and integrated across sectors. For global investors, it signals a massive opportunity to plug into India’s growth engine.

As a cross-border business promotion agency, the International Advisory Council (IAC) helps international companies, Investment Promotion Agencies (IPAs) and Economic Development Boards (EDBs) leverage Gati Shakti to navigate India market entry, regional expansion and long-term investment planning.

What is the Gati Shakti Master Plan?

Gati Shakti is a ₹100 lakh crore (~$1.2 trillion) infrastructure vision that integrates 16 ministries on a single digital platform. It aims to boost connectivity across:

  • Roads, rail, airports, ports
  • Energy networks
  • Industrial corridors and logistics parks
  • Special economic zones (SEZs) and manufacturing clusters

The plan focuses on multi-modal connectivity, reducing logistics costs and enhancing ease of doing business.

Why Gati Shakti Matters for Global Investors

1. Improved Logistics = Lower Costs

India currently has among the highest logistics costs globally (~13–14% of GDP). Gati Shakti aims to reduce this to 8–9% by creating unified and efficient transportation corridors. This means better margins for international firms establishing or expanding operations in India.

2. Industrial Clusters with Plug-and-Play Infrastructure

The plan supports the creation of smart industrial zones with:

  • Ready-built factories
  • Power and water connections
  • Skill development centers
  • Proximity to ports and rail hubs

This makes business setup in India faster and more efficient.

3. Data-Driven Site Selection

Using GIS-enabled tools, investors can now assess infrastructure quality, connectivity and growth projections at a granular level before committing capital.

Target Sectors Attracting FDI Through Gati Shakti

  • Automotive & EVs: Integrated clusters in Maharashtra and Tamil Nadu
  • Pharmaceuticals: API parks with rail-port-air connectivity
  • Semiconductors: Zones planned with uninterrupted utilities and global-standard logistics
  • Renewable Energy: Solar and hydrogen corridors with export access

All supported by complementary policies like the PLI scheme and National Logistics Policy.

How IPAs and EDBs Can Leverage Gati Shakti

Foreign Investment Promotion Agencies can promote their regions as part of India’s supply chain, targeting Indian manufacturers looking to relocate or co-invest. Similarly, EDBs working with India can attract investment by aligning with corridors supported under Gati Shakti.

At IAC, we facilitate:

  • India delegation support to Gati Shakti-linked regions
  • Cross-matching with Indian investor lead generation campaigns
  • Local partnerships through B2B matchmaking India
  • Representation for IPAs via our in-country representation India service

Real-World Example: Logistics Investment from Southeast Asia

A Southeast Asian logistics firm approached IAC to explore entry into India. We:

  • Identified 3 Gati Shakti-aligned logistics zones
  • Facilitated meetings with state industrial boards and Invest India
  • Structured a phased investment model with local warehousing partners
  • Managed compliance, workforce sourcing and PR

Result: Investment signed within 6 months, with operational launch set for Q3 2025.

What’s Next for Investors?

Gati Shakti is being integrated with India’s National Logistics Policy, PLI schemes and Make in India initiatives. For investors, this creates a layered advantage:

  • Physical infrastructure
  • Policy incentives
  • Digital transparency
  • Institutional support

With IAC as your partner, you can move faster, mitigate risks, and align with India’s infrastructure momentum.

Conclusion

Gati Shakti is not just a master plan it’s India’s invitation to global investors to become part of its next growth chapter. Whether you’re in logistics, manufacturing, renewable energy, or high-tech, this initiative makes India more connected, competitive and investor-ready.

Let IAC help you tap into this transformation on the ground, with insight and impact.