1) Andhra Pradesh
Andhra Pradesh, in the Southern peninsula was bifurcated into two states: Telangana and residuary Andhra Pradesh (Seemandhra) in 2014. It has well-developed social, physical and industrial infrastructure with good connectivity. It also has good power, airport, IT and port infrastructure.
Not surprisingly, the state attracted Foreign Direct Investment (FDI) equity inflows worth US$ 18.469 billion during the period April 2000 to March 2019. The state had 19 operational SEZs across diversified sectors of IT, textiles and apparel, food processing, footwear and leather products, multi-product and pharmaceuticals.
It is at the forefront of industry policy reforms being the first state in the country to have enacted the Industrial Single Window Clearance. Andhra Pradesh has many strengths: it is home to many global and national pharma players and has rich oil and natural gas reserves. The state’s Krishna-Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes. The Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) is the platform to promote investments in this industry. Finally, it is an agricultural zone especially in the cultivation of rice.
2) Arunachal Pradesh
Arunachal Pradesh, the largest among the seven states located in the Northeast of India shares its borders with the neighbouring countries of Bhutan in the west, China (Tibet) in the north and northeast, Myanmar in the east and southeast and the Indian states of Assam and Nagaland in the south. This geographic location of the state provides immense opportunities for international trade with South Asian countries such as Myanmar, Bhutan and China.
The land is mostly mountainous with the Himalayan ranges running north-south. The state’s five river valleys have immense hydropower potential, currently estimated at 50,328 MW, or approximately 22 per cent of India's current power generating capacity.
The state's economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, pulses, sugarcane, ginger, oilseeds, cereals, potato, and pineapple. It is also strong in horticulture production.
Some of the other key industries of the state include art and crafts, weaving, cane and bamboo, horticulture, power and mineral based industry. Due to its topography, the state has varied agro-climatic conditions suitable for horticulture of flowers and aromatic and medicinal plants. Arunachal Pradesh is home to 601 species of orchids, or 52 per cent of the species of orchids known in India. The state is largest producer of kiwis in India and the second largest producer of large cardamom.
Assam is India's gateway to Northeast India and acts as a vital link for trade with Southeast Asian countries. The state is well known known for its tea, petroleum resources, muga silk and bio-diversity. It is also becoming an increasingly popular destination for wildlife tourism.
It is rich in water resources and is the third-largest producer of petroleum and natural gas in the country and with ample reserves of limestone. With its five national parks and 18 wildlife sanctuaries, the state is a biodiversity hotspot. Other potential areas of investment include power and energy, mineral-based industries, tourism and crude oil refining.
Assam has adopted numerous investor-friendly policies to attract investments and accelerate industrial development. Key areas of focus include the IT, tourism and power. An agrarian economy, the agro-climatic conditions support cultivation of a wide range of horticultural crops, including plantation crops and various fruits and vegetables, flowers, spices, medicinal and aromatic plants, nut crops and tuber crops.
Bihar located in the eastern part of India enjoys a unique location specific advantage because of its proximity to the vast markets of eastern and northern India, access to ports such as Kolkata and Haldia and to raw material sources and mineral reserves from the neighbouring states.
It is also one of the strongest agricultural states with about 80 per cent of its population employed in agricultural production. Besides it is the fourth largest producer of vegetables and the eight largest producer of fruits in the country. Food processing, dairy, sugar, manufacturing and healthcare are some of the fast growing industries in the state.
The state has planned initiatives for the development of other sectors such as education and tourism and also provides incentives for information technology and renewable energy.
Chhattisgarh is located in Central India. It is one of the few states that have surplus power. In fact, Korba district in Chhattisgarh is known as the power capital of India. It is also among the few profitable states in terms of utility-based electricity. Chhattisgarh has an approximate total installed power generation capacity of 14,044.10 MW.
Mineral resources are Chhattisgarh's biggest strength. It is a leading producer of minerals such as coal, iron ore and dolomite. Considerable reserves of bauxite, limestone and quartzite are also available in the state. It is the only state in India that produced tin concentrates with it accounting for 35.4 per cent of the country’s tin ore reserves.
For all the above reasons, Chhattisgarh has emerged as one of the most preferred investment destinations in India. The state has been acclaimed as “one of the best fiscally managed states” by the Reserve Bank of India (RBI). A wide range of fiscal and policy incentives for businesses have been announced under its Industrial Policy, 2014-19. Additionally, the state has well-drafted policies for the IT/ITeS, solar energy, agro and food processing, minerals and biotechnology sectors. Around 80 per cent employment in the state is dependent on agriculture. The state’s position as the ‘Rice Bowl of Central India’ and its reliance on agriculture has led to brisk growth in the food processing industry as a special-thrust industry. It is also one of the leading producers of tussar and kosa silks in the country.
Delhi is the capital of India and also a state for administrative purposes. It is one of the largest metropolises in the country and the centre of international politics, trade, culture and literature in India.
It is also one of the fastest growing states of the country. At current prices, the Gross State Domestic product (GSDP) of Delhi increased at a CAGR (in Rs) of 12.41 per cent between 2011-12 and 2018-19 to reach Rs 7.80 trillion (US$ 108.06 billion).
Owing to its location, connectivity and rich cultural history, Delhi has always been a prime tourist attraction of the country. Delhi Metro is the seventh busiest metro rail network in the world with 178.9 million people having used the service in 2017.
Under the State Budget 2019-20, Rs 3,914 crore (US$ 542.48 million) has been allocated for housing and urban development in Delhi, an increase of 33.49 per cent from revised estimates of 2018-19. The National Capital Region (NCR) is India’s biggest milk market. The real estate market in Delhi is lucrative and attracts investors from India and abroad. Startups in Delhi-NCR receive amongst the highest funding of close to US$ 3 billion a year.
Goa, located in the western region of India is a tourist paradise with its natural scenery, unique beaches and cultural diversity. It is also one of the fastest growing states in the country. The state’s economic growth is driven by the strong performance of industrial sectors such as mining, tourism and pharmaceuticals. Goa hasd a total installed power generation capacity of 550.19 MW and is one of the few states in India to achieve 100 per cent rural electrification.
Goa has a well-developed social, physical and industrial infrastructure and virtual connectivity. It has an international airport that is in line with its importance as a globally-recognised leisure destination. It also has significant port infrastructure. The state has an established base for the pharmaceuticals industry and an emerging destination for knowledge-based industries such as biotechnology and IT.
A second greenfield international airport is being developed in Mopa, Goa with an annual capacity to handle 30 million passengers by phase IV. The Goa government has approved the Rs 981 crore (US$ 144.1 million) proposal for Panaji Smart City which will have a major focus on eco-mobility, public transport system and improvement of conservation zones. It currently has a total of 38 operational mining leases with a reported production of 6.08 million tonnes in 2017-18.
Gujarat, located on the western coast of India has the longest coastline of 1,600 km among all the states in the country. It is one of the leading industrialised states in India. As of May 2019, Gujarat had a total installed power generation capacity of 32,374.04 megawatt (MW). Power generation in the state in same duration reached 7,764.52 GWH.
The state is considered the petroleum capital of India due to presence of large refining capacity set up by private and public sector companies. As of July 2018, Gujarat had four refineries with a combined capacity of 101.9 MMTPA.
It is also the world’s largest producer of processed diamonds, accounting for 72 per cent of the world’s processed diamond share and 80 per cent of India’s diamond exports. Eight out of 10 diamonds in the world are polished in Surat. With a contribution of 65 to 70 per cent to India’s denim production, Gujarat is the largest manufacturer of denim in the country and the third largest in the world. There are 42 ports, 18 domestic airports and one international airport. There are 106 product clusters and 60 notified special economic zones (SEZs). Large scale investment is expected in Gujarat as part of the US$ 90 billion Delhi-Mumbai Industrial Corridor (DMIC).
Gujarat had 17 operational SEZs, four SEZs with valid in-principle approvals, 28 SEZs with formal approvals and 24 SEZs with notified approvals, as of January 2019. According to the Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investments (FDI) inflows in the state of Gujarat reached US$ 20.545 billion during April 2000-March 2019. Gujarat accounted for about 5 per cent share in the overall FDI inflows in India.
Haryana is among the northern most states in India and adjacent to national capital Delhi. The state surrounds the national capital city, New Delhi, from three sides. Historically an agrarian state, Haryana today is a well-developed industrial state.
The state is one of India's largest automobile hubs and accounts for two thirds of passenger cars, 50 per cent of tractors and 60 per cent of motorcycles manufactured in the country. It has also emerged as a base for the knowledge industry, including IT and biotechnology. Haryana is the third- largest exporter of software and one of the preferred destinations for IT/ITeS facilities.
The state attracted Foreign Direct Investment (FDI) equity inflows worth US$ 82.77 billion during the period April 2000 to December 2018, according to data released by Department of Industrial Policy and Promotion (DIPP). Gurgaon has emerged as a preferred destination for the IT industry in North India, with more than 400 IT and ITeS companies.
10) Himachal Pradesh
Himachal Pradesh, located in the northern region of India is one of the fastest growing states in India.
As of March 2019, Himachal Pradesh had a total installed power generation capacity of 4,068.13 MW. With a hydro power potential of 27,436 MW (of which just 24,000 MW has been harnessed), Himachal Pradesh accounts for 25.9 per cent of the country's total hydro power potential. All the villages of Himachal Pradesh are electrified. The state has also attracted investments in other sectors including in pharmaceuticals, IT and food processing industries.
Agriculture is the main occupation and the major source of employment in the state, as 89.96 per cent of the population lives in rural areas. Horticulture production in 2017-18 is estimated at 2,423 thousand metric tonnes. Himachal Pradesh is one of the fastest-growing regions in the pharmaceutical industry in India, driven by incentives announced by the state Government in its Industrial Policy, 2004. The tourism sector of Himachal Pradesh contributes to 6.6 per cent in the state GDP. Domestic tourist inflows in the state reached 16.09 million in 2018 while foreign tourist arrivals reached 356,000.
Jharkhand is one of the leading states in terms of economic growth. The GSDP growth of the state stood at 10.22 per cent in 2017-18.
The state is one of the richest mineral zones in the world and boasts of 40 per cent and 29 per cent of India's mineral and coal reserves respectively. Due to its large mineral reserves, mining and mineral extraction are the major industries in the state. Other reserves include: iron ore (26 per cent of India’s reserves), copper ore (18.5 per cent of India’s reserves), uranium, mica, bauxite, granite, limestone, silver, graphite, magnetite and dolomite. Jharkhand is the only state in India to produce coking coal, uranium and pyrite.
The state’s industries enjoy a unique location-specific advantage as it is close to the vast market of eastern India. It is closer to the ports of Kolkata, Haldia and Paradip which helps in transportation of minerals.
The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 113 million during the period April 2000 to December 2018, according to data released by Department of Industrial Policy and Promotion (DIPP). Total exports from the state stood at US$ 1,116.53 million during 2017-18. During 2018-19 (Up to February 2019), exports from the state stood at US$ 1,136.84 million.
About 80 per cent of the rural population of the state depends on agriculture. Rice is the major food crop of the state, covering 80 per cent of the cropped area.
Karnataka has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 35.69 billion during the period April 2000 to December 2018, according to data released by Department for Promotion of Industry and Internal Trade (DPIIT). The state has a vibrant automobile, agro, aerospace, textile and garment, biotech and heavy engineering industries. It also has sector-specific SEZs for key industries such as IT, biotechnology, and engineering, food processing and aerospace.
Karnataka is the IT hub of India and home to the fourth largest technology cluster in the world. In 2017-18, merchandise exports from the state aggregated to US$ 18.05 billion. Karnataka has 47 IT/ITeS SEZs, three software technology parks and dedicated IT investment regions. As of February 2019, Karnataka had a total installed power generation capacity of 27,272.36 megawatt (MW).
Karnataka boasts of a diverse flora and fauna and a 320 km natural coast line, which makes it a nature tourist's paradise. Tourist arrivals in the state increased from 36.7 million in 2006 to 102.3 million in 2017. The state plans to develop and upgrade eight clusters around Bengaluru with an investment of US$ 348.4 million in coming years. More than 60 per cent of the biotechnology companies in India have a base in Bangalore and the state drives 50 per cent of the total revenues in India’s biotechnology sector.
The ITE&C (Information Technology, Electronics & Communication) department of the state has established a new IoT policy within the state with a view to attain a substantial market share in India’s IoT market by 2020. Karnataka is the first state which came out with an aerospace policy in the country.
Kerala is one of the few states to have marketed its natural beauty successfully to the leisure tourism sector. The state's unique heritage and cultural diversity have helped attract tourists from the world over.
Kerala can be termed as the land of spices, considering the large variety of spices grown in the state. Kerala is the largest producer of pepper in India and accounts for a lion’s share in India’s production. Apart from pepper, other spices produced in the state include ginger, cardamom, nutmeg and tamarind.
Kerala has a wide range of fiscal and policy incentives for businesses under the Industrial and Commercial Policy and has well-drafted sector-specific policies. The state has a techno park in Thiruvananthapuram which has been instrumental in attracting global electronics manufacturers, an info park in Kochi, and a cyber park in Kozhikode
14) Madhya Pradesh
Madhya Pradesh in Central India is rich in natural resources - fuels, minerals, agriculture and biodiversity. It is also the sole diamond producing state in the country. Diamond production in the state stood at 8,039 carats during April-July 2018.
To pull in investors and promote entrepreneurs, the state government has selected TRIFAC, an agency that encourages a single window system, for speedy approvals of different clearances and consents. Madhya Pradesh has a total installed power generation capacity of 23,334.40 MW, comprising 7,187.62 MW under state utilities, 5,692.38 MW under central utilities and 10,454.40 MW under private sector.
The state is home to three operational SEZs, five notified SEZs and ten formally approved SEZs. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in the state, between April 2000 and December 2018, totalled to US$ 1,416 million.
Textiles is one of the key sectors of Madhya Pradesh. The state is one of the major cotton producing states of India. In 2017-18, cotton and silk production in the state reached 2,859 million metric tonnes and 105 million metric tonnes, respectively. Exports of cotton yarn during April 2018-February 2019 stood at US$ 266.56 million.
Maharashtra’s gross state domestic product (GSDP) at current prices accounted for 14.89 per cent of India’s gross domestic product (GDP) in 2017-18, the highest among all states. The GSDP grew at a CAGR of around 11.77 per cent from 2011-12 to 2017-18 to reach US$ 387.36 billion. The net state domestic product (NSDP) grew at a CAGR of around 11.75 per cent from 2011-12 to 2017-18 to reach US$ 340.41 billion.
The state's capital, Mumbai, is the commercial capital of India and has evolved into a global financial hub. The city is home to several global banking and financial service firms. Pune, another major city in the state, has emerged as the educational hub. Maharashtra has emerged as a key hub for IT and ITeS, electronics and captive business outsourcing industries.
The state has a well-developed social, physical and industrial infrastructure. Apart from 16 airports, the state has two major and 48 minor ports. It also has a well-developed power supply grid. Maharashtra's infrastructure sector has grown significantly over the last decade, with a substantial rise in the number of industrial clusters and public-private partnership (PPP) projects.
According to the DPIIT, cumulative FDI inflows^ in the state of Maharashtra during April 2000 to December 2018 stood at US$ 123.73 billion. During 2017-18, total merchandise exports from the state stood at US$ 69.73 billion. During 2018-19**, exports stood at US$ 65.94 billion. Maharashtra accounts for approximately 35.1 per cent of the country’s output of automobiles by value. The state has launched a unique Unlimited Maharashtra marketing campaign to attract tourists. A half-hour ferry ride across Mumbai harbor takes visitors to view the superbly carved 1,300 years old cave temple on the little island of Elephanta, a favourite picnic spot.
Manipur is situated in the eastern-most corner of Northeast India. The state shares borders with other north-eastern states of Nagaland, Mizoram and Assam and the neighboring country of Myanmar. Due to its wealth of flora and fauna, Manipur is described as a ‘flower on lofty heights’, ‘a jewel of India’ and ‘Switzerland of the East’. Its breath-taking scenic beauty makes it a tourist’s paradise.
Manipur has the advantage of acting as India's 'Gateway to the East' through Moreh town, which is the only feasible land route for trade between India and Myanmar and other Southeast Asian countries. With about 3,268 square km of area covered by bamboo forests, Manipur is one of India’s largest bamboo producing states and a major contributor to the country’s bamboo industry. In 2017, the state accounted for 10,687 square km of bamboo bearing area.
Manipur has the highest number of handicrafts units as well as the highest number of craft persons comprising skilled and semi-skilled artisans in the entire north-eastern region. Handlooms is the largest cottage industry in Manipur and the state ranks among the top five in terms of the number of looms in the country.
Government of India has undertaken construction of a 125 km railway line connecting Jiribam, Tupul and Imphal. The railway line will provide railway connectivity to the state’s capital and is expected to be completed by 2020.
Manipur is the first state in India to have set up the 4-core infrastructure of the National e-Governance Plan, namely Common Service Centre, State Wide Area Network, State Data Centre and State Portal, State Service Delivery Gateway and e-forms. The government sees hydropower as a major industry and has given top-priority consideration to developing the state's hydropower potential. In view of this goal, it has decided to invite private investors in the hydropower generation industry.
Meghalaya is located in the Northeast of India. The state shares its border on the north and east with Assam and on the south and west with Bangladesh.
Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country. The diverse range of soil types, including red-loamy and laterite, support various agricultural crops like rice, maize, pulses, oilseeds, cotton, jute and mesta. The state has achieved success in the cultivation of non-traditional crops like tea, cashew nut, oilseeds, tomato, mushroom and wheat. Turmeric produced in Meghalaya is considered to be one of the best in the world as it contains 7.5 per cent of curcumin.
As of May 2019, Meghalaya had a total installed power generation capacity of 582.21 MW, comprising 354.53 MW from state utilities, 0.12 from private utilities and 227.56 MW from central utilities. Of the total installed power generation capacity, 394.27 MW was contributed by hydropower, 155.29 MW by thermal power and 32.65 MW by renewable power. estimated to be 2,298 MW.
Meghalaya, with abundant deposits of coal, limestone, kaolin feldspar, quartz, granite, industrial clay and uranium and a small deposit base of sillimanite, bauxite, base metals and apatite has great industrial potential.
It is one of the most picturesque states in the country, has two National Parks and three wildlife sanctuaries. It offers many adventure tourism opportunities like mountaineering, rock climbing, hiking and trekking.
Mizoram is one of the seven states in the North-East of India. Industries in the state enjoy a unique location-specific advantage. Bordering Myanmar and Bangladesh, Mizoram offers a gateway for engaging in international trade with Southeast Asian countries. With improving road, rail and air connectivity and the establishment of trade routes with neighbouring countries, trade facilitation has improved over the last decade.
Bamboo forests cover 3,267 square kilometre of Mizoram’s geographical area. There is an estimated growing stock of 25.26 million metric tonnes of 35 varieties of bamboo in the state. It offers immense potential for commercial exploitation of the natural resources for export-oriented industries.
The climatic conditions in the state provide a conducive breeding ground for commercial exploitation of all kinds of silkworms. Sericulture remains one of the state's key industries. Raw silk production in Mizoram stood at 75.00 metric tonnes during 2018-19 (up to December, 2018).
With a literacy rate of 91.33 per cent, Mizoram offers a highly literate workforce. Knowledge of English is an added advantage for the Mizo workforce. The natural resources, climatic conditions and policy incentives in the state support investments in bamboo, sericulture, tourism, agro-products and agro-processing sectors. During 2017(P), 67.77 thousand domestic tourists and 1.16 thousand foreign tourists visited the state. In June 2017, Government of Mizoram had introduced ‘Mizoram Eco-Tourism’ Policy to promote understanding of heritage, values, nature and wildlife conservation keeping bio-diversity, eco-system functioning and socio-economic development on priority. The policy will also help in employment generation. With abundant natural resources and supporting policies, the food processing sector offers potential for investment.
Nagaland is among the seven North-Eastern states and is located in India’s farthest east side. The state is flanked by Myanmar in the east, Arunachal Pradesh in the north, Assam in the west and Manipur in the south.
The state has considerable resources of natural minerals, petroleum and hydropower. It has unexploited reserves of around 600 million metric tonnes (MT) of crude oil and more than 20 MT of hydrocarbon. Moreover, the state has 315 MT of coal reserves and 1,038 MT of limestone reserves.
As of May 2019, Nagaland had total installed power generation capacity of 170.03 MW, of which 138.36 MW was under central sector, 30.67 MW was under state utilities and private sector accounted for 1.00 MW. Of the total installed power generation capacity, 81.03 MW was contributed by thermal, 57.33 MW by hydro and 31.67 MW by renewable energy.
The agro-climatic conditions in Nagaland provide commercial opportunities for floriculture and horticulture. The state has 650 indigenous species of medicinal and aromatic plants. The state is estimated to have the potential to produce 15,000 MT of honey and 100 MT of wax, which together could generate around US$ 100 million annually. Moreover, the production of honey during 2017-18 (October) was recorded to be 590 metric tonnes.
Bamboo is found extensively in Nagaland, with bamboo growing stock covering nearly five per cent of the total stock in the country. As of 2018, Nagaland has 46 species of bamboo. During 2017-18, production of raw silk in the state of Nagaland stood at around 615 MT.
Odisha shares its borders with West Bengal on the north-east, Jharkhand on the north, Andhra Pradesh on the south, Chhattisgarh on the west, and the Bay of Bengal on the east.
It has emerged as a key state with regard to the mineral and metal based industries. At 34.3 per cent in 2018, Odisha contributed the largest share of mineral production India in terms of value. It is the first state in India to have undertaken reform and restructuring initiatives in the power sector. As of 2019, the state had a total installed power generation capacity of 7,653.58 megawatt (MW).
The state has attracted Foreign Direct Investment (FDI) inflows worth US$ 549 million during the period April 2000 to March 2019, according to data released by Department for Promotion of Industry and Internal Trade(DPIIT).
Odisha has a well-developed social, physical and industrial infrastructure, and the state government has undertaken several infrastructural projects to further promote overall development. The state's infrastructure includes well-connected road and rail networks, airports, ports, power, and telecom. Its industries are based mainly on the natural resources available in the state. It carries more than 35 per cent of country’s natural resources. The state has significant reserves of iron ore, bauxite, nickel, coal, etc. Hence, it is an attractive destination for mineral-based industries.
Punjab, one of the northernmost states of India, is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest.
Punjab’s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are rated among the best. As of October 2018, Punjab had a total installed power generation capacity of 13,432.44 megawatt (MW).
The state attracted Foreign Direct Investment (FDI) equity inflows worth US$ 1.472 billion during the period April 2000 to June 2018. The state government had set up a Bureau of Investment Promotion (BIP) in December 2013 for one-stop clearance of investment proposals. Punjab’s agricultural land is rich and productive. The state is also known as the ‘Bread Basket of India’ and led to first Green Revolution in the country. By 2025, it is expected that the state will be among the leading producers of non-food grains as well as exporter of various agri-products. During 2017-18, gross area sown was estimated at 7.9 million hectares.
Rajasthan, the largest (area-wise) state in India, is located in the north-western part of the subcontinent. The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. It is among the largest mineral-producing states in India. Around 81 varieties of minerals are available in the state and 57 minerals are produced on a commercial scale in the state. It also contributes significantly to production of dimensional and decorative stones, such as marble, sandstone, and granite.
The state is one of the leading tourist destinations in India. Historic palaces, especially those in Jaipur and Udaipur, offer opportunities to expand the luxury tourism segment, with increasing number of tourists visiting wild life sanctuaries and desert locations.
The Gross State Domestic Product (GSDP) of Rajasthan expanded at a Compound Annual Growth Rate (CAGR) of 11.37 per cent (in Rupee terms) over 2011-12 to 2018-19. The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 1.96 billion between April 2000 and March 2019, according to data released by Department for Promotion of Industry and Internal Trade (DPIIT).
The policy environment has been favourable for the establishment of industrial units. A single window clearance system (SWCS) for investment approvals is operational in the state and the Bureau of Investment Promotion (BIP) was set up to focus on investments above US$ 2.2 million. The state is the leading producer of cement grade limestone in India. Limestone production in the state between Apr-Jun 2018 reached 19.26 million tonnes. Tourism is one of the key sectors in the state. In 2017, 45.92 million domestic tourists and 1.61 million foreign tourists visited Rajasthan.
Sikkim is surrounded by vast stretches of Tibetan Plateaus in the north, the Chumbi Valley of Tibet and the Kingdom of Bhutan in the east, the Kingdom of Nepal in the west and Darjeeling district of West Bengal in the south.
The state is richly endowed with rare and exotic flora and fauna, which includes 5,000 species of flowering plants, 515 rare orchids, 60 primula species & 36 rhododendron species. This makes it one of the leading states in the Northeast region in terms of production & supply of cut flowers to mainland consumer markets. Of the 6,000 medicinal plants in India, over 424 plants (including the famous Artemisia vulgaris that is used as an antiseptic) are grown in Sikkim.
Sikkim has several snow-capped peaks including Kanchenjunga, the world's third highest peak that attracts a large number of tourists from across the globe. Tourism in Sikkim has emerged as the new profession of the Sikkimese people with its vast natural potential. Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori–tourism and adventure tourism has given fillip to the tourism trade in the state. Government of India has introduced North East Industrial Development Scheme 2017 under which all new industrial units located in eight north-eastern states in manufacturing and services sector of the state will be eligible for various incentives.
Sikkim's geographical and environmental conditions are quite conducive for development of floriculture at a higher altitude. The state is also considered to be the Kingdom of flowers and is an innovator in cultivating Gladiolus. Tourism in Sikkim has emerged as the new profession of the Sikkimese people with its vast natural potential.
24) Tamil Nadu
Tamil Nadu is the fourth largest state of India. It has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto components, engineering, pharmaceuticals, garments, textile products, leather products, chemicals, plastics, etc. It ranks first among the states in terms of number of factories and industrial workers. According to the DPIIT, cumulative FDI inflows in Tamil Nadu and Puducherry during April 2000 to March 2019 stood at US$ 29.84 billion. During 2017-18, total merchandise exports from the state stood at US$ 29.75 billion. During 2018-19, the exports stood at US$ 30.52 billion.
Tamil Nadu has a well-developed infrastructure with an excellent road and rail network, three major ports, 15 minor ports, and seven airports across the state providing excellent connectivity. As of May 2019, the state had a total installed power generation capacity of 31.30 GW. It has 50 formally approved SEZs, 47 notified SEZs and three with in- principle approval SEZs and 38 exporting SEZs, as of July 2018.
Telangana, the 29th state of India, was formed in June 2014, with Hyderabad as its capital. The state was formed as a result of the split of erstwhile Andhra Pradesh state.
The capital city of Hyderabad (also the capital for earlier larger Andhra Pradesh state) is a hub for information technology (IT) and pharmaceutical sectors. During 2017-18, export of IT and ITeS products of Telangana was Rs 93,422 crore (US$ 14.50 billion). Leading IT companies like Facebook, Google, IBM and Microsoft hold significant presence in Hyderabad.
Hyderabad also accounts for approximately 20 per cent of India's total pharma exports. The state government plans to set up a pharma city and promote public private partnership to develop the state's pharma sector.
The central government recently announced formation of an Information Technology Investment Region (ITIR) near Hyderabad. With the establishment of the ITIR, the government plans to generate 1.5 million direct and 5.3 million indirect jobs in the IT sector in the next five years. The state government has undertaken the task of establishing Hyderabad Pharma City which will be the first of its kind, smart ecosystem creating a new international benchmark for sustainable industrial cities.
Tripura, one of the north-eastern states, is endowed with rich and diverse bamboo resources. It is also the second largest natural rubber producer in the country after Kerala. Tripura accounts for about 6 per cent of bamboo sticks, used for making incense sticks in India. Around 21 of the 130 bamboo species known in India are grown in the state.
It holds a strong tea plantation base in India, with 54 tea gardens covering an area of over 7,482.27 hectares as of 2015-16. Due to large availability of land along with appropriate climatic conditions, a gradual boost to the tea production in the state has been witnessed. In 2017-18, tea production in the state stood at 8.72 million kg.
The state is also rich in natural gas deposits, glass sands, limestone, plastic clay and hard rock. As of May 2019, Tripura had a total installed power generation capacity of 752.14 megawatt (MW).
With its pleasant climate and scenic landscape, Tripura is a favoured tourist destination. The state offers tourists attractions such as historical Hindu and Buddhist sites, temples, rivers and rock carvings. The state has favourable climatic conditions for cultivating various fruit and horticultural crops including rice, jackfruit, pineapple, potato, sugarcane, chilli and natural rubber. Rice is the major crop of the state and is cultivated in 91 per cent of the cropped area. The state has a wide variety of medical plants having 266 medicinal plants, 379 species of trees, 581 herbs, 320 shrubs and 165 climbers.
Tripura has 87.8 per cent literacy rate, higher than the national average rate, making it an ideal destination for knowledge sectors. It also has vast natural gas reserves. 27)
Uttar Pradesh is the most populous state in India with a population of ~200 million people. Uttar Pradesh shares its borders with Nepal on the north, the Indian states of Uttarakhand and Himachal Pradesh towards the northwest, Haryana, Delhi and Rajasthan on the west, Madhya Pradesh on the south, Chhattisgarh and Jharkhand to the southeast and Bihar in the east.
It is a favoured tourist destination in India due to the location of Taj Mahal, one of the Eight Wonders of the World, in Agra. In 2017, domestic tourist arrivals in the state were 234 million1 and stood second. Uttar Pradesh had a total installed power generation capacity of 25,072.25 megawatt (MW) as of February 2019. Power generation in the state for 2018-19^ reached 122,730.05 GWH.
Uttar Pradesh is the largest producer of food grains in India and accounted for about 17.83 per cent share in the country’s total food grain output in 2016-17. Food grain production in the state in 2016-17 stood at 49,903.1 thousand tonnes and 51,252.7 thousand tonnes in 2017-18. Major food grains produced in the state include rice, wheat, maize, millet (bajra), gram, pea and lentils. Production of vegetables stood 28.23 thousand tonnes in 2017-18 and the state remains the largest producer of vegetables in India.
Owing to the state’s large base of skilled labourers, it has emerged as a key hub for IT and ITeS industries, including software, captive business process outsourcing (BPO) and electronics. The state has become a hub for the semiconductor industry with several major players having their offices and R&D centres in Noida.
India Brand Equity Foundation
Uttarakhand is located at the foothills of the Himalayan mountain ranges. The state has close proximity to the national capital Delhi, a leading market of the country and excellent connectivity with neighbouring states. Uttarakhand has abundant natural resources due to hills and forests. Its agro-climatic conditions support horticulture-based industries. The vast water resources available in the state are also favourable for hydropower.
The presence of several hill stations, wildlife parks, pilgrimage places and trekking routes make Uttarakhand an attractive tourist destination. In 2017, domestic tourist arrivals in the state were 34.36 million and foreign tourist arrivals had crossed over 0.13 million.
Uttarakhand is one of the fastest growing states in India, thanks to the massive growth in capital investments arising from conducive industrial policy and generous tax benefits. Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.85 per cent to Rs 2.37 trillion (US$ 32.87 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.06 per cent to Rs 2.12 trillion (US$ 29.44 billion).
The state offers a wide range of benefits in terms of interest incentives, financial assistance, subsidies and concessions. Uttarakhand has a robust social and industrial infrastructure, virtual connectivity with over 39,000 km of road network, two domestic airports, 345.23 km of rail routes and an installed power generation capacity of 3,400.42 Mega Watt (MW) as of February 2019.
29) West Bengal
West Bengal in eastern India is the largest producer of rice in India. Rice production for the state totalled 14.99 million tonnes in 2017-18. It is also a major producer of fish. West Bengal is the second largest tea-producing state in India and is home to the globally acclaimed Darjeeling tea variety.
Its location advantage makes the state a traditional market for eastern India, the Northeast, Nepal and Bhutan. It is also a strategic entry point fosr markets in Southeast Asia. The cost of operating a business is lower in Kolkata than in other metropolitan cities.
Total export from IT sector of the state is estimated to have crossed Rs 19,000 crores (US$ 2.83 billion) in 2016-17. The state government introduced the West Bengal Information Technology and Electronics Policy 2018 which envisions the state as one of the leading states in India in the IT, ITeS, ICT and related sectors.