NEW DELHI: NITI Aayog’s new Investment Friendliness Index compares India’s states and Union Territories on infrastructure, business climate, regulation, institutions and skills. The index is expected to help foreign companies identify locations that best match their investment needs.
An article in India Narrative, written from the perspective of Turkish companies, argues that investors should not approach India as one uniform market. Although Turkiye–India trade reached US$6.88 billion in 2025–26, Turkish companies often begin their India strategy at the national level by attending trade fairs, appointing a distributor or opening offices in Delhi or Mumbai. The article says this approach overlooks the major differences between India’s states and industrial clusters.
India has become more integrated through the Goods and Services Tax, digital infrastructure and expanding transport corridors. However, factors such as land allotment, electricity costs, construction permissions, incentives, industrial estates and administrative efficiency continue to vary significantly across locations. Selecting a state is therefore an important part of determining product pricing, delivery timelines and investment risk.
Gujarat is highlighted as an attractive destination, with NITI Aayog pointing to its efficient ports, competitive industrial power and strong road and rail networks. These advantages could benefit Turkish companies in machinery, chemicals, food processing and components, particularly businesses that require reliable utilities and easy access to export markets.
Maharashtra also offers strong opportunities. Mumbai provides access to finance, headquarters and professional services, while Pune has a major automotive and engineering ecosystem. With thousands of manufacturing and ancillary units in Pimpri-Chinchwad, Pune is a significant automobile hub. Turkish automotive suppliers should therefore compare Pune with clusters such as Chennai–Hosur and Gujarat’s automobile belt based on potential customers, certification requirements and after-sales needs.
Karnataka, meanwhile, is well suited to technology-focused businesses. Bengaluru provides access to talent, venture capital, research institutions and corporate technology buyers in areas such as software, cyber-security and industrial digitalisation. However, NITI Aayog also identifies regulatory ease and land allotment as weaknesses. While Karnataka may be ideal for a software company, a manufacturing business must carefully assess land availability and the practical challenges of establishing a factory.
The article concludes that Turkish investors should adopt a location-specific strategy rather than treating India as a single market. (IANS)
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