India’s position as a global hub for Global Capability Centres (GCCs) continues to strengthen in 2026, emerging as one of the most compelling structural shifts in the country’s investment story. What began as back-office outsourcing two decades ago has evolved into a sophisticated ecosystem supporting advanced engineering, AI development, finance and strategic operations for multinational corporations.

For global investors, Economic Development Boards (EDBs) and Investment Promotion Agencies (IPAs), the GCC expansion wave presents both immediate opportunities and long-term strategic implications.

From Cost Arbitrage to Strategic Value

The GCC model in India has undergone a fundamental transformation. Earlier centres focused largely on cost efficiency and process support. Today’s GCCs are increasingly responsible for high-value functions such as:

• Artificial intelligence and data science
• Product engineering and R&D
• Cybersecurity and cloud operations
• Global finance and risk analytics

India’s large pool of STEM talent, improving digital infrastructure and supportive policy environment have made the country the preferred destination for multinational firms looking to build capability hubs at scale.

This shift is significant because GCCs now influence core business strategy rather than merely supporting operations.

Policy and State-Level Competition Intensifies

Indian states are actively competing to attract GCC investments through targeted incentive frameworks, plug-and-play infrastructure and faster regulatory clearances. Dedicated GCC policies in states such as Karnataka, Telangana, Tamil Nadu and Uttar Pradesh are helping decentralise growth beyond traditional metro clusters.

For IPAs globally, this trend offers an important lesson: investment attraction is increasingly sector-specific and capability-driven, not just location-based.

Moreover, India’s broader push toward ease of doing business, digital governance and infrastructure expansion continues to strengthen the operating environment for large multinational back-end and innovation centres.

Why Multinationals Are Doubling Down

Several structural factors explain the sustained GCC momentum in India:

Talent depth: India produces one of the world’s largest annual cohorts of engineers and technology professionals.

Scale economics: Companies can build large teams quickly while maintaining operational efficiency.

Digital maturity: India’s rapid digital adoption supports advanced analytics, fintech and AI deployment.

Geopolitical diversification: Many global firms are pursuing “China+1” and multi-location strategies, with India emerging as a key pillar.

As a result, GCCs are no longer viewed as experimental investments but as core components of global operating models.

Strategic Implications for Investment Stakeholders

For EDBs and IPAs worldwide, India’s GCC surge carries broader implications. First, it reinforces the importance of specialised talent ecosystems in attracting high-value investment. Second, it highlights how policy clarity and state-level coordination can accelerate sectoral growth. Third, it signals that future FDI competition will increasingly centre on knowledge-intensive industries rather than purely manufacturing capacity.

The IAC Perspective

At the International Advisory Council, we see GCC expansion as one of the most durable pillars of India’s next growth phase. The convergence of talent, technology and targeted policy support is creating a powerful platform for multinational investment.

For global stakeholders evaluating Asia strategies, India’s GCC ecosystem is no longer optional to assess — it is becoming central to long-term global operating and innovation frameworks.

India’s investment environment continues to send strong positive signals in early 2026. A combination of policy liberalisation, deepening bilateral capital flows and a sharper technology push is reinforcing the country’s position as one of the most closely watched growth markets globally.

For international investors, Economic Development Boards (EDBs) and Investment Promotion Agencies (IPAs), several recent developments merit close attention.

100% FDI in Insurance: A Major Liberalisation Step

Among the most significant policy moves is India’s decision to allow 100% foreign direct investment in the insurance sector under the automatic route. This reform removes prior government approval requirements for full foreign ownership and is expected to unlock fresh capital into a sector that remains underpenetrated relative to the size of the economy.

The move serves multiple strategic objectives. It aims to deepen insurance coverage across the country, strengthen balance sheets of insurance providers and attract long-term global financial players seeking exposure to India’s expanding middle class.

For global insurers and financial investors, the signal is clear: India continues to pursue calibrated but meaningful liberalisation in key financial sectors.

Japanese Investment Momentum Remains Strong

Bilateral investment trends are also reinforcing confidence. Japanese FDI stock in India has crossed ₹2.7 lakh crore, with approximately 1,400 Japanese firms now operating in the country. The partnership has matured significantly over the past decade.

Japanese companies remain active across infrastructure, manufacturing, mobility and engineering. More recently, collaboration has expanded into advanced areas such as semiconductors, clean energy and digital technologies.

This sustained engagement highlights an important structural shift. India is increasingly viewed not only as a cost-efficient production base but as a long-term strategic technology and innovation partner.

NITI Aayog’s Global Tech Outreach

India’s policy focus is also becoming more outward-looking. NITI Aayog has proposed structured tech-services trade missions targeting key markets including Japan, Germany and the Middle East. The initiative aims to create a unified global brand for India’s technology capabilities while helping firms access international markets more efficiently.

This reflects a broader evolution in India’s growth model. The country is moving beyond traditional IT services toward a more comprehensive digital and AI ecosystem. For investors, this signals expanding opportunities across data, artificial intelligence, digital infrastructure and knowledge services.

Strategic Outlook for Global Stakeholders

Taken together, these developments point to a consistent policy direction. India is simultaneously liberalising capital-intensive sectors, strengthening trusted bilateral investment corridors and positioning itself more aggressively in future-focused technology domains.

For IPAs, EDBs and institutional investors, the implications are clear. Financial services, advanced manufacturing and AI-enabled sectors are likely to remain priority areas in India’s next investment cycle.

At the International Advisory Council, we see these moves as part of a broader structural transition. India is steadily evolving from a large emerging market into a multi-sector strategic growth platform for global capital.

Introduction

Environmental, Social and Governance (ESG) principles are no longer optional they’re strategic imperatives influencing global investment flows. India, too, is rapidly embedding ESG frameworks into its policy, finance and corporate governance systems. For international companies, understanding India’s ESG landscape is crucial to align with investor expectations, meet compliance mandates and unlock India market entry support through sustainability-led programs.

At the International Advisory Council (IAC), we help foreign businesses integrate ESG goals into their India strategy ensuring market relevance, long-term resilience and regulatory compatibility.

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India’s ESG Momentum: An Overview

India’s ESG momentum is being shaped by:

• Regulatory mandates from SEBI (Securities and Exchange Board of India)
  
• BRSR (Business Responsibility and Sustainability Report) requirements for large companies
  
• State-level green policies and climate-resilient infrastructure plans
  
• Rising ESG-focused investments by domestic and foreign funds
  
• Central programs like Green Hydrogen Mission, PM Gati Shakti and Net Zero 2070
  

This ecosystem creates both responsibility and opportunity for foreign companies entering India.

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ESG and Investment: The New Link

1. Access to Incentives and Green Capital

Many state and central programs now:

• Prioritize green businesses for land, CAPEX subsidies and tax breaks
  
• Enable access to green bonds, climate funds and blended finance tools
  
• Encourage cross-border business promotion aligned with global ESG norms
  

2. Investor Confidence

International investors increasingly demand:

• ESG compliance from portfolio companies
  
• Clear ESG disclosures (BRSR, SDG alignment)
  
• Sustainable sourcing and workforce practices
  Companies with strong ESG frameworks gain easier access to capital.
  

3. Supply Chain Pressure

Global OEMs require Indian suppliers and JVs to meet sustainability standards. Early compliance offers a competitive edge in B2B matchmaking India and international procurement.

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ESG in Action: Sector-Wise Impact

• Manufacturing: Adoption of cleaner production, water efficiency and waste management
  
• Logistics: EV fleets, energy-efficient warehousing, ESG-linked infrastructure
  
• Energy: Green hydrogen, solar manufacturing, carbon credit markets
  
• Edtech and Universities: Partnerships for climate education and academic collaborations India
  
• Tourism: Sustainable tourism certifications, local community integration, cultural exchange programs India
  

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Case Study: European MedTech Firm’s ESG-Driven Entry

A Germany-based medtech company approached IAC to enter India responsibly. We helped:

• Select a LEED-certified facility in Telangana’s medtech park
  
• Structure an ESG-aligned joint degree program in India with a local health sciences university
  
• Partner with an NGO for local healthcare access
  
• Develop a sustainability communication strategy for Indian media
  

The firm now enjoys brand credibility and eligibility for ESG-aligned funding.

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IAC’s Role in ESG-Oriented Market Entry

At IAC, we:

• Align your India investment facilitation with national and state ESG priorities
  
• Connect with state governments offering green investor support
  
• Identify partnerships for social impact and in-country representation India
  
• Assist with ESG disclosures, reporting frameworks and impact branding
  
• Help IPAs and EDBs communicate ESG leadership to international audiences
  

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India’s ESG Roadmap: What to Watch

• Expansion of mandatory ESG reporting to mid-sized companies
  
• Green finance taxonomy development for international alignment
  
• ESG-linked FDI promotion, especially in clean energy, mobility and infrastructure
  
• Growing integration of ESG into FDI attraction services India
  

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Conclusion

India’s ESG movement is not a trend it’s a transformation. For foreign investors, aligning with India’s sustainability vision enhances not just compliance but competitiveness, capital access and community engagement.

With IAC, you can lead the shift from responsible entry to resilient, ESG-aligned growth in India’s evolving investment landscape.

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.

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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
  

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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
  

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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.

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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.

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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.

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Sectors Gaining Traction

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

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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

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.

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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
  

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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.

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.

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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.

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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
  

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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.

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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.

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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
  

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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
  

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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.

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.

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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.

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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
  

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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.

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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.

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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
  

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Sectors Gaining Traction

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

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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.

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.

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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.

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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.
  

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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.

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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.

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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.

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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
  

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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.

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.

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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.

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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.

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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.

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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
  

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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
  

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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.

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.

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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.

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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.

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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.

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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
  

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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
  

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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.

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.

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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.

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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.

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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.

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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.

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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.

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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
  

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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.