International Advisory Council -

India’s Emerging Tech Zones: Why Foreign Innovators Should Take Note

Posted on February 12, 2026 by iacindia

Introduction

India’s innovation ecosystem is evolving beyond traditional tech hubs like Bengaluru and Hyderabad. With strategic government backing, a wave of emerging tech zones is rising across India targeting fields such as semiconductors, AI, clean tech, biotech, EVs and deeptech R&D.

These zones are purpose-built to offer foreign tech companies, startups and R&D units a seamless platform for India market entry, joint innovation and cross-border academic collaboration.

At the International Advisory Council (IAC), we work closely with these clusters to help international companies identify innovation-ready locations aligned with both policy incentives and business goals.

What Are Emerging Tech Zones?

These are government-recognized innovation corridors, parks and R&D clusters, often tied to:

State industrial policies
Production-linked incentive (PLI) schemes
Central R&D and digital infrastructure missions
Institutional partnerships with universities and academic partnerships India

They offer:

Special incentives for R&D, IP development and prototyping
Access to skilled talent and local research networks
In-country representation India for real-time coordination and scale

Key Tech Zones You Should Know

1. Dholera Special Investment Region (Gujarat)

Focus: Semiconductors, electronics, smart mobility
Location for India’s first chip fabrication units under ISM scheme
Incentives: CAPEX subsidies, electricity waivers, high-speed connectivity

2. Yadadri-Bhuvanagiri (Telangana)

Home to India’s pharma and medtech park
Linked with Hyderabad’s deep biotech ecosystem
Offers shared testing labs, plug-and-play pharma zones and B2B matchmaking India

3. Tamil Nadu EV Cluster

Cities like Coimbatore and Hosur emerging as EV and battery tech hotspots
Foreign OEMs entering via joint ventures and tech partnerships
Linked with global supply chains and India’s green industrial policy

4. Karnataka Beyond Bengaluru

Emerging AI, drone and deeptech zones in Mysuru and Hubballi
Strong university network for joint degree programs India
State co-funds R&D for high-risk, high-reward startups

Opportunities for Global Innovators

Foreign tech firms can:

Establish pilot R&D centers with subsidized infrastructure
Tap into co-funded grants via state or central innovation missions
Build academic partnerships India for talent development and tech transfer
Localize offerings via India higher education consulting networks
Leverage India investment facilitation for fast-track approvals

These zones are designed for first movers, who benefit most from early partnerships and media visibility.

Case Study: Nordic Clean Tech Startup in Coimbatore

A Scandinavian clean-tech company approached IAC to assess India’s EV battery market. With our guidance, they:

Partnered with a local manufacturer in Tamil Nadu’s EV cluster
Set up an R&D hub with state-funded prototyping support
Engaged in education roadshows India to recruit local engineers
Secured ESG-aligned investments via India’s green tech platform

Outcome: A low-risk, high-visibility expansion into a booming sector.

IAC’s Role in Tech Zone Entry

We help:

Identify the best-fit tech zones by industry focus
Connect with state-level innovation councils and IPAs
Structure joint innovation models and funding access
Establish in-country representation India to fast-track execution
Align your branding with PR for international companies in India

We also support EDBs and investment promotion agencies in positioning their regions as tech partners for India.

Sectors Gaining Traction

Semiconductors and electronics
AI, robotics and automation
Battery storage and green hydrogen
Pharmaceuticals and medtech
Agri-tech and food innovation

Conclusion

India’s tech zones are not just local growth stories they are gateways to global collaboration. For foreign innovators, these zones offer talent, funding, policy alignment and access to one of the world’s fastest-growing tech markets.

With IAC as your partner, you can enter the Indian innovation ecosystem with clarity, credibility and competitive advantage.

India’s Emerging Tech Zones: Why Foreign Innovators Should Take Note

Introduction

These zones are purpose-built to offer foreign tech companies, startups and R&D units a seamless platform for India market entry, joint innovation and cross-border academic collaboration.

What Are Emerging Tech Zones?

These are government-recognized innovation corridors, parks and R&D clusters, often tied to:

State industrial policies
Production-linked incentive (PLI) schemes
Central R&D and digital infrastructure missions
Institutional partnerships with universities and academic partnerships India

They offer:

Special incentives for R&D, IP development and prototyping
Access to skilled talent and local research networks
In-country representation India for real-time coordination and scale

Key Tech Zones You Should Know

1. Dholera Special Investment Region (Gujarat)

Focus: Semiconductors, electronics, smart mobility
Location for India’s first chip fabrication units under ISM scheme
Incentives: CAPEX subsidies, electricity waivers, high-speed connectivity

2. Yadadri-Bhuvanagiri (Telangana)

Home to India’s pharma and medtech park
Linked with Hyderabad’s deep biotech ecosystem
Offers shared testing labs, plug-and-play pharma zones and B2B matchmaking India

3. Tamil Nadu EV Cluster

Cities like Coimbatore and Hosur emerging as EV and battery tech hotspots
Foreign OEMs entering via joint ventures and tech partnerships
Linked with global supply chains and India’s green industrial policy

4. Karnataka Beyond Bengaluru

Emerging AI, drone and deeptech zones in Mysuru and Hubballi
Strong university network for joint degree programs India
State co-funds R&D for high-risk, high-reward startups

Opportunities for Global Innovators

Foreign tech firms can:

Establish pilot R&D centers with subsidized infrastructure
Tap into co-funded grants via state or central innovation missions
Build academic partnerships India for talent development and tech transfer
Localize offerings via India higher education consulting networks
Leverage India investment facilitation for fast-track approvals

These zones are designed for first movers, who benefit most from early partnerships and media visibility.

Case Study: Nordic Clean Tech Startup in Coimbatore

A Scandinavian clean-tech company approached IAC to assess India’s EV battery market. With our guidance, they:

Partnered with a local manufacturer in Tamil Nadu’s EV cluster
Set up an R&D hub with state-funded prototyping support
Engaged in education roadshows India to recruit local engineers
Secured ESG-aligned investments via India’s green tech platform

Outcome: A low-risk, high-visibility expansion into a booming sector.

IAC’s Role in Tech Zone Entry

We help:

Identify the best-fit tech zones by industry focus
Connect with state-level innovation councils and IPAs
Structure joint innovation models and funding access
Establish in-country representation India to fast-track execution
Align your branding with PR for international companies in India

We also support EDBs and investment promotion agencies in positioning their regions as tech partners for India.

Sectors Gaining Traction

Semiconductors and electronics
AI, robotics and automation
Battery storage and green hydrogen
Pharmaceuticals and medtech
Agri-tech and food innovation

Conclusion

With IAC as your partner, you can enter the Indian innovation ecosystem with clarity, credibility and competitive advantage.

Why India’s New FTA Strategy Is a Game-Changer for Global Manufacturers

Posted on February 11, 2026February 11, 2026 by iacindia

Introduction

In recent years, India has recalibrated its trade and investment strategy to prioritize Free Trade Agreements (FTAs) that align with its long-term manufacturing and export goals. These FTAs are not just about reducing tariffs they’re designed to enhance market access, ease regulatory bottlenecks and encourage foreign manufacturers to view India as a global production base.

At the International Advisory Council (IAC), we help manufacturers and investment promotion agencies understand how India’s evolving FTA landscape can amplify their India market entry support, supply chain resilience and export potential.

India’s Shift in FTA Strategy: From Defensive to Assertive

India earlier maintained a cautious stance on trade agreements. Today, it is actively:

Negotiating and finalizing FTAs with key economic partners
Prioritizing market access for Indian goods and services
Securing provisions on investor protection and IP rights
Positioning India as a manufacturing and sourcing hub under global value chains

This strategic shift is driven by a desire to make Indian production globally competitive and to attract foreign direct investment (FDI) through more open, predictable markets.

FTAs Fueling Manufacturing Expansion

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

Eliminates duties on 90% of goods
Boosts exports in textiles, gems, auto parts, electronics
Enables duty-free access to Middle Eastern and African markets

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

Immediate duty cuts on 85% of Indian exports
Encourages Australian investment in India’s clean energy and minerals sectors
Opens space for joint ventures in agri-tech and machinery

3. Upcoming India–UK and India–EU FTAs

Will target automotive, medtech, chemicals, digital goods
Expected to align regulatory standards and ease cross-border investment promotion
Focus on green trade, ESG compliance and digital economy norms

What This Means for Global Manufacturers

Manufacturers based in treaty-partner countries can:

Expand production in India and re-export duty-free to FTA markets
Source raw materials or components from India at competitive rates
Set up India-based joint ventures to benefit from local policy support and international market access
Reduce costs through customs simplification and tariff exemptions
Access India’s rapidly growing domestic and export markets under preferential trade rules

This strengthens India’s positioning in China + 1 diversification strategies.

Case Study: European Appliance Manufacturer’s India Strategy

A European mid-size appliance company partnered with IAC to enter India in anticipation of the India–EU FTA. IAC:

Identified a production site in Gujarat with PLI scheme support
Facilitated dialogue with India’s trade ministry and state IPA
Supported B2B matchmaking India with regional distributors and suppliers
Developed a plan to re-export to Africa and the Middle East under the India–UAE CEPA

Result: Duty-free access, accelerated production and lower go-to-market costs.

IAC’s Role in Leveraging FTAs for Manufacturing Expansion

At IAC, we:

Guide companies on leveraging tariff benefits and non-tariff harmonization
Help interpret FTA provisions for in-country representation India and joint manufacturing models
Connect with local IPAs for site selection and tax planning
Support PR for international companies in India to highlight FTA-linked investments
Assist EDBs in building cross-border industrial collaboration with Indian states

Key Sectors Poised to Benefit from India’s FTAs

Auto components and EVs
Pharmaceuticals and medical devices
Textiles and garments
Engineering goods and capital machinery
Electronics and telecom equipment
Processed food and agro-products

Conclusion

India’s new FTA strategy is not just about trade it’s a calculated bet on transforming the country into a global manufacturing powerhouse. For foreign manufacturers, these agreements offer preferential access, operational efficiency and policy backing.

At IAC, we translate these policy shifts into actionable entry strategies that position you for long-term growth in India and beyond.

How India’s New Industrial Policy Aims to Reshape Global Supply Chains

Posted on February 9, 2026February 9, 2026 by iacindia

Introduction

In the post-pandemic world, global supply chains are being redesigned to prioritize resilience, diversification and geopolitical balance. India has responded with a comprehensive New Industrial Policy, designed to position itself as a key node in global production networks. This policy overhaul focuses on infrastructure, innovation, investment and inclusive growth making India an attractive choice for foreign companies rethinking their global footprint.

At the International Advisory Council (IAC), we work with international investors, EDBs and IPAs to align their India market entry strategies with this evolving policy framework.

What Is the New Industrial Policy?

India’s revised Industrial Policy (2024–2030) aims to:

Boost manufacturing’s share in GDP to 25%
Enhance exports and integration into global value chains
Encourage sustainability and Industry 4.0 adoption
Promote innovation through R&D and digital infrastructure
Offer in-country representation India support for smoother foreign investment facilitation

The policy supports sector-specific strategies, incentives and execution mechanisms across key industries.

Key Focus Areas for Global Investors

1. Manufacturing & Value Chain Integration

The policy promotes India as a China + 1 alternative, encouraging global firms to:

Set up regional manufacturing hubs
Source components from India
Participate in India’s expanding industrial corridors

States like Tamil Nadu, Gujarat and Uttar Pradesh are leading with their own aligned industrial policies.

2. Production-Linked Incentive (PLI) Expansion

Building on earlier success, the policy expands PLI schemes to:

Semiconductors
Green hydrogen
Textiles
Specialty steel
EVs and batteries

These schemes offer up to 10% incentives on incremental production, encouraging FDI attraction in India.

3. Digital & Green Industry Focus

The policy emphasizes Industry 4.0, AI, IoT and sustainability:

Tax breaks for green technologies
ESG-aligned investment zones
Digitization of manufacturing ecosystems
Integration with cross-border investment promotion platforms

Strategic Opportunity for Foreign Businesses

Foreign investors can:

Build assembly and manufacturing units in India for global re-exports
Integrate Indian suppliers into their global value chains
Co-invest in R&D, automation and joint ventures with local firms
Launch innovation programs via academic partnerships India

Companies entering now benefit from first-mover access to policy-linked incentives.

Case Study: ASEAN Auto Component Firm in Uttar Pradesh

An ASEAN-based auto component supplier chose Uttar Pradesh for its expansion. With IAC’s help, the company:

Leveraged incentives under the state’s auto policy aligned with the national industrial strategy
Accessed plug-and-play facilities in the Eastern Freight Corridor
Hired local engineering talent through a joint degree program India
Partnered with logistics providers for regional re-export

IAC managed policy navigation, India investment facilitation and B2B matchmaking India.

IAC’s Role in Industrial Policy-Based Entry

We assist:

Investors in identifying sectors aligned with national & state policies
EDBs and IPAs in promoting their regions in India as sourcing hubs
Companies in navigating PLI and other incentive mechanisms
With in-country representation India to monitor implementation and compliance
In executing PR for international companies in India to align with ESG and government goals

Sectors Gaining Traction

Electronics & Semiconductors
Textiles & Technical Apparel
EVs, Batteries & Green Hydrogen
Aerospace & Defence
Food Processing & Cold Chain Logistics

Conclusion

India’s New Industrial Policy is more than a vision it’s an execution-ready roadmap designed for global integration. For companies seeking resilient supply chains, localised production and scalable innovation, India is offering the infrastructure, incentives and investor support needed to thrive.

At IAC, we help global partners convert policy promise into business reality efficiently, strategically and sustainably.

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

Posted on February 6, 2026 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 February 5, 2026 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 February 4, 2026 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 February 2, 2026February 2, 2026 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 January 30, 2026January 30, 2026 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 January 28, 2026January 28, 2026 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

Why State-Level Incentives Matter

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

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 January 20, 2026January 20, 2026 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

Direct Investment in Startups
Setting Up an India-Based Fund Entity
Co-Investment with Indian Funds or Government Schemes
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.