Foreign Direct Investment | Foreign Direct Investment in Different States of India

Foreign Direct investment

Foreign Direct investment in different states of India

In this article, we will cover Foreign Direct investment (“FDI”) in different states of India. A complete guide on understanding the key sectors in these states and benefits.

Foreign Direct investment – STATES

1. Andhra Pradesh

Andhra Pradesh state, known as “India’s rice bowl,” “is mostly dominated by the agriculture and livestock sector. It has created major international players like Intel Volkswagen, and their production units are here. Amaravati, the upcoming capital of Andhra Pradesh in the green field, is being built in cooperation with the governments of Japan, Singapore, and the United Kingdom. 

  • The largest offshore a gas field in India in the KG Basin (Krishna-Godavari Basin)
  • India is # 1 country in marine exports
  • The second-largest producer of cotton and raw silk in India

 Key sectors

 Textile and Apparel

Andhra Pradesh is the second-largest producer of cotton and silk in India and contributes 13% to India’s net textile exports. The textile-based industries have a strong presence in Guntur, Chittor, Kadaba, and Cornwall. With Visakhapatnam’s unique integrated clothing city, through an innovative concept of “fiber to store,” the state owns 7% of India’s total yarn capacity and aims to generate total revenue of Rs. 6000 crore (the US $ 960 million) in investments and 300,000 new jobs by the year 2020. Foreign Direct investment

 Infrastructure and urban development

123,334 km of the available road network within the country, along with 888 km of national waterways and railways 2,660 km, facilitating easy and convenient transportation.


The country ranks # 1 in fish and shrimp production, as well as food and spice production. With the establishment of the next mega food

complex in the Krishna region, it is expected to attract new investments of $ 800 million by 2020.

Power and Energy

Andhra Pradesh is ranked # 1 in the World Bank’s Energy Efficiency Readiness Index and has the lowest transport and distribution losses in India. The world’s largest solar garden with one location is located in the Cornwall region. 

Information technology and electronics

Andhra Pradesh is home to over 20% of electronic

manufacturers in India. Andhra Pradesh has approximately 44,000 km of fiber optic cable network with public and private connections.

Automobiles and Auto Components

Kia Motors has established its first industrial unit in India. There are planned auto groups under development in Nellore and Chittoor, with new investments estimated at $ 3.2 billion by 2020.

 Aerospace and Defence

The eastern naval headquarters is located in Visakhapatnam. A world-class facility for maintenance, repair, and repair (MRO) has been proposed as part of the planned Bhogapuram Aerotropolis company near Visakhapatnam. The country is expected to attract $ 3.2 billion in investment and create 5,000 jobs by 2020.

 2. Arunachal Pradesh

Arunachal Pradesh is situated in the northeastern region of India. The land is mostly mountainous, with the Himalayas running from north to south. They are five river valleys in AP- Cumming, Subanseri, Siang, Lohit, and Terrapin. These river valleys have huge potential for hydroelectric power, currently estimated at 50,328 MW, or nearly 22% of India’s current generation capacity. Foreign Direct investment

Arunachal Pradesh is home to the largest monastery in India and the second largest monastery in the world – Tuang Monastery. Rich in flora and fauna, the state has a forest cover of more than 82%. The geographical location of Arunachal Pradesh provides opportunities for international trade with the countries of South Asia. 

The largest producer of kiwis in India and the second-largest producer of a kaleidoscope. The second-largest producer of okra in India.

The Key sectors

Agriculture and forestry industries

The main agricultural and forest-based industries in Arunachal Pradesh are associated with tea, fruits, non-wood plywood, and cane. 


As of February 2019, Arunachal Pradesh had a total power generation capacity of 300.56 MW, comprising 116.55 MW of hydroelectric power, 112.49 MW of renewable energy sources (RES) and 71.52 MW of thermal energy.


The “Textile Enhancement Scheme in the Northeastern Region” has facilitated 24 marine livestock projects for the overall development of mariculture in the state. Projects were approved for implementation from FY15 to FY 2019, at the cost of Rs. 920.78 crore (the US $ 127.4 million). The state’s raw silk production reached 54 tons in 2017-2018 and 44 metric tons in the fiscal year 2019 (through December 2018).


The country is considered an “orchid paradise,” which represents 601 types of orchids. The number of tourists to the state reached 4,51,152 in 2017, with 4,44,005 domestic visitors and 7,147 foreign visitors.

3. Assam

The largest tea producing area in the world.

Assam is located in northeast India and is the highest producer of wild natural gas in the country. The state produces over half of the tea in India. Assam is also the third-largest oil and natural gas producer in the country and has abundant limestone reserves. 

According to the Ministry of Industry and Domestic Trade Promotion, the cumulative flows of foreign direct investment in the northeastern states during the period from April 2000 to December 2018 amounted to USD 113 million. During the period 2017-2018, the total exports from the state reached 382.35 million USD. The value of exports from the state reached $ 316.80 million during 2018-2019.

Key sectors


The northeastern states of India have a hydroelectric potential of 63,257 MW, which represents about 43% of the total estimated hydropower potential in the country. From this, Assam has the capacity to produce 680 MW of hydroelectric power. The state’s solar energy is estimated at 14,000 megawatts.

Textile, Handloom, and Handicraft

Assam has a global monopoly in terms of producing muga silk (also known as golden silk). The country accounts for about 95% of global moga production. Moreover, Assam is the main producer of silk in the country (accounting for 65% of the country’s silk production). Raw silk production in Assam and Podoland reached 4,587 metric tons in 2018-2019 (until December 2018). The state also has 51 different types of bamboo.

Tourism and hospitality

The state recorded the arrival of 6.07 million tourists in 2017. The tourism sector contributes about 5.5% of the country’s gross domestic product and provides about 10.5% of job opportunities in the country.

Agricultural gardening and food processing

The total production of horticultural crops in the state in 2018-2019 was 7.18 million tons, with 702.53 thousand hectares under production.

Information Technology

The state government has plans to develop an IT park in Bunjora, Guwahati, covering an area of ​​40 hectares, with an estimated $ 700 million in investment.

Pharma and Medicinal

The state is home to more than 952 plant species used in medical practices. About a dozen pharmaceutical units have started production in the state, with a cumulative investment of $ 142 million.

Plastic and petrochemicals

Assam represents approximately 15% of India’s total crude oil production. It has crude oil reserves of 1.3 billion tons and 156 billion cubic meters of natural gas and is, therefore, an ideal destination for energy.

River transportation and Port Township

Fifteen of the 111 declared national waterways, including the route northwest of -2 from the Brahmaputra, pass through Assam. The state government plans to increase the share of transport across inland waterways from cargo traffic from 3% to 10%, making it 35 metric tons annually.

4. Bihar

India is the largest producer of vegetables. The % of the population working in agricultural production in Bihar is about 80 percent, which is well above the national average. It is the fourth-largest producer of vegetables and the eight largest fruit producers in India. Food processing industries, dairy products, sugar, manufacturing, and healthcare are among the fastest-growing industries in the state. 

The country has a large base of cost-effective industrial employment, which makes it an ideal destination for a wide range of industries. Between 2000 to 2018, the total foreign direct investment in Bihar and Jharkhand amounted to the US $ 113 million, which made Bihar one of the main areas of foreign direct investment.

Processing food and dairy products

Primarily an agricultural economy, the state’s total vegetable production reached 14.3 million tons in 2016-2017, which is the third-highest in the country.

Textile and Leather

The country produced about 72.2 tons of raw silk during the 2015-2016 period and is home to about 1,000,000 textiles. Bihar also produces more than 2.5 million cowhides and five million skins annually. Silk Tasar from Bhagalpur is an exclusive product from Bihar, which has the ability to bring premium prices.

Renewable energy

Bihar has more than 12.5 gigawatts of renewable energy. Moreover, the state government has begun taking steps to address the electricity supply and demand gap by implementing large energy projects.


Antiques and antiques attract huge numbers of tourists. The birthplace of two of the world’s great religions: Buddhism and Jainism.

5. Chandigarh

Often regarded as ‘The City Beautiful,’ Chandigarh is true to its name with a high quality of social infrastructure, large green expanses, and its comfortably compact size.

Chandigarh is one of the best-planned cities in the country. The city is home to 2,900 small scale and 15 medium scale units. 40% of industries are auxiliary units that manufacture components for tractors. Other industries in the city include pharmaceuticals, IT, electronics, plastics, and machine tools. The Rajiv Gandhi Chandigarh Technology Park (RGCTP), which was developed in two phases, was given the SEZ status in 2006, and the city’s Capitol Complex was declared a UNESCO World Heritage site in 2016. Foreign Direct investment

  • Chandigarh’s total exports for the year 2017-18 amounted to a total of $ 70 million.
  • The city attracts over 1.5 million tourists each year.
  • It has over 1,150 ancillary units that make components for tractor industries.·
  •  The GSDP for the year 2016-17 stood at a total of $ 4.8 billion

6. Chhattisgarh

The main producer of coal, tin, and dolomite in India. Chhattisgarh is at present one of the few that have surplus energy. Kuba is known in Chhattisgarh, the energy capital of India. As of February 2019, Chhattisgarh had a combined power generation capacity of 13,526.79 MW.

The country accounts for 35.4 percent of India’s tin ore reserves. The state was hailed as “one of the best financially managed states” by the Reserve Bank of India (RBI) and attracted cumulative direct investments of $ 1.42 billion from April 2000 to December 2018.

  • The second-largest producer of iron ore in India
  • It ranks at 4 in Ease of Doing Business by the World Bank and KPMG
  •  It contribute 17% to India’s total exports of herbs and medicinal plants
  • The main producer of coal, steel, tin, and aluminum in India

Key Sectors

Metals and Minerals

It is the only state of India that produces tin concentrates and accounts for 36 percent of the tin ore reserves in the country. Dante Wada is the only tin producing region of 6 mines. From April to February 2018, the state’s tin concentration production was 15,650 kg. The country contributes 32% and 37% to the production of iron and sponge in India, respectively.

Electronic system design and manufacture

The second-largest deployment of fixed WiMAX in the country. Chhattisgarh has an Operating Software Technology Company of India (STPI), in the region of 1.7 million hectares, with units in software development, medical transcription, KPO, financial control, and accounting.

7. Delhi

 Delhi is home to various major ministries and government Departments.

The national capital of India, Given its location, connectivity, and rich cultural history, Delhi has always been a major tourist attraction in the country. The Delhi Metro is the seventh busiest rail network in the world, with 178.9 million people using this service in 2017. Delhi, a popular tourist attraction, is famous for its street shopping, rich heritage, and a variety of cuisines. Acc. DIPP, FDI inflows in Delhi, including part of Uttar Pradesh and Haryana, amounted to the US $ 82.77 billion from 2000 to 2018. Foreign Direct investment

The National Capital Region (NCR) is the largest milk market in India. The market for regulated milk in the region, which is estimated at five million liters per day, is growing at 6-8 percent annually.

  • The most urbanized area in India, with an urbanization rate of 98%.
  • The tallest brick minaret in the world, Qutub Minar, is in Delhi.

Key sectors

Tourism and hospitality

The influx of about 2.4 million tourists in 2015-2016, which represents 10.2% of the total foreign tourists visiting in India which makes Delhi a tourist center. The capital is famous for its monuments depicting Mughal architecture, such as Burana Kila and the Red Fort. Other popular attractions include the Akshardham Temple, Birla Mandir, Dilli Hat, The Five Senses Garden, India Gate, Jame Mosque, Parliament.

Construction and real estate

Delhi offers profitable opportunities in the real estate market too and attracts investors not only from India but abroad as well. 

Information Technology and ITES

The city is a hub for software companies, providing services such as ERP, server provider, document management systems, customer relationship management, and software development, among others.

Agricultural and food manufacturing

Delhi is mainly known for producing livestock and dairy products with cooperatives such as Dairy Mother, Delhi Milk Supply, and AMOL. Delhi produced 2,81,000 tons of milk in 2015-2016.

8. Goa

The second highest concentrated iron ore in India.

The state is also well connected by rail and road. Beautiful heritage sites, white sandy beaches make Goa a haven for tourists around the world. it is the smallest state of India is also the wealthiest state with the highest per capita GDP. 

It also has a great port infrastructure. The country has a solid base for the pharmaceutical industry and an emerging destination for knowledge-based industries such as biotechnology and information technology. According to the Ministry of Promotion of Industry and Internal Trade, FDI flows to the state of Goa, from April 2000 to December 2018, amounted to the US $ 981 million. The highest growth in cargo traffic (60% 0 registered by Mormogao Port during 2016-17 Foreign Direct investment

Key sectors


Tourism is the largest contributor to the country’s GDP. Goa is a collection of multiple social and cultural events on a global scale. It is the “ultimate destination for parties” in India.


Pharmaceutical exports of Goa recorded 5,076 metric tons during the 2015-2016 period.


Goa has a mining belt that covers a large area, which is mainly concentrated in Bicholim, Salcete, Sangem, and Quepem. The mining industry has experienced significant growth over the past decades, as it produced 3.57 million tons in the 2015-2016 period, from 0.6 million tons in the 2014-2015 period.

Information Technology and ITES

According to the 2016-17 state budget, the government of India has given approval to the state government to build the electronics manufacturing group in Twim by providing central assistance of $ 7.6 million to the state government.

9. Gujarat

The world leader in curing diamonds. With a stunning coastline of 1,600 km, Gujarat is one of India’s leading industrial states. The World Bank ranked Gujarat, which was one of the fastest-growing economies in the world, in # 4 India in Ease of Doing Business (EoDB) in 2017.

The country provides the best-in-class infrastructure in the form of 42 ports, 18 domestic airports, and one international airport, connecting it directly to major cities and commercial centers in the world. There are 106 product groups and 60 special economic zones that have been notified. Large-Scale investment in Gujarat is expected to be made as part of the $ 90 billion Delhi Mumbai Industrial Corridor (DMIC). Foreign Direct investment

  • The world’s largest oil refining center in Jamnagar
  • As of January 2019, Gujarat has 17 operating special economic zones. Total exports from Gujarat increased by 22% in 2017-2018 to reach USD 66 billion
  • Global account as a leader in the production of processed diamonds
  • # 3 Global in denim manufacturing
  • The highest position in the Government Investment Opportunities Index (N-SIPI) at the National Council for Applied Economic Research in 2016 as well as 2017

Key sectors

Food processing

Gujarat has more than 30,000 food processing units, 560 cold stores, and fish processing units. With a total of 51 dairy factories, the state’s total milk production exceeded 12 MMT in 2015-16, making it the second-highest milk producer in India.

Automotive and automotive components

The country accounts for 9% of India’s production of equipment to move and has established vehicle groups in Sananda, Hallo, and Rajkot. 


The state of Gujarat is # 1 in India’s chemical industry. It contributes to 62% of the country’s petrochemical production, 35% of diversified chemical production and 18% of chemical exports.

Pharmaceuticals and biotechnology

Gujarat is a pioneer in the pharmaceutical industry in India, representing 33% of the sector’s business volume in the country and 28% of exports. With an impressive turnover of $ 615 million in 2014, Gujarat is one of the top 5 biotechnology destinations in India.

Gems and Jewellery

Gujarat accounts for 72 percent of the global market share of processed diamonds. The country has reached a “cluster development” initiative to enhance competitiveness and cost-efficiency.

Information technology and business process management

The size of the IT industry in Gujarat is estimated to be the US $ 1.1 billion in 2015-2016, and the state expects to increase tenfold by 2021 with support from the state’s new IT policy.

Tourism and hospitality

The state is home to many heritage sites identified by UNESCO, the largest temple complex in the world, and Black Asian. The country registered 42.6 million tourists, both domestic and foreign, in 2015-2016.

10. Haryana

The leading manufacturer of tractors and excavators. it is a prominent center of trade and consumption with Gurugram it’s business capital. The state is one of the largest auto centers in India, accounting for two-thirds of passenger cars, 50 percent of tractors, and 60 percent of motorcycles manufactured in the country. Foreign Direct investment

The country’s gross domestic product is divided into 52 percent of services, 30 percent of industries, and 18 percent of agriculture. Haryana ranked third as the best state in the ease of doing business in the country in the Business Reforms Action Plan for 2017.

  • The highest source of basmati rice from India
  • The highest concentration of BPO workforce in the world
  • The largest producer of horticultural crops – strawberries, carrots, cucumbers, and radishes

Key sectors

Automotive and Light Engineering

Haryana is the favorite destination for major cars and auto component manufacturers. Exports of cars and auto components from Haryana amounted to about $ 1.39 billion in fiscal 2018 and amounted to $ 945.55 million between April and December 2018.

Renewable energy

With a rural electrification rate of 100%, Haryana’s energy sources are composed of thermal (81%), hydro (17%), renewable energy sources (2%), and nuclear (1%) 51.89 MW of renewable energy projects Haryana has been run and 239.5 projects MW is in progress as of 2016.

Information Technology and ESDM

The information technology sector in Haryana contributes 9.4% to the country’s GDP and 54% to the country’s exports. Haryana is the global hub of BPO, where 5% of Indian BPO staff come from Gurugram.


Haryana is the fourth largest cotton producer in the country. About $ 1.3 billion of garments are exported annually from Haryana. About a million workers work in the textile sector, along with Panipat, known as “the city of weavers” for their tolerance in loom products.

11. Himachal Pradesh

Himachal Pradesh is located to the west of the Himalayas and is famous for its beautiful hill stations. The state is known for its natural environment and attracted tourists three times the size of its population in 2015-16. 

Agriculture is only the main source of income and employment in Himachal. Himachal is the second-largest apple producer in the country and is home to the largest drug center in Asia. The state (including Chandigarh, Punjab, and Haryana) attracted FDI stock inflows of $ 2.07 billion from 2000 to 2018, acc. to data from the Department of Industrial Policy and Promotion (DIPP). Foreign Direct investment

  •  It represents 26% of Heidel’s total energy potential in India
  •  The second-largest producer of apples in India
  •  The highest growth in the number of technical institutions in the past six years

Key sector


Himachal Pradesh is famous for its natural scenery in the Himalayas and famous hill stations. In 2015-16, the country witnessed tourists three times the size of its population. The tourism sector contributed more than 6.6% of the country’s GDP in 2017.

Agricultural and food manufacturing

The agriculture and food processing sector contribute about 10 percent of the country’s GDP. The main crops grown in Himachal Pradesh include rice, corn, potatoes, ginger, etc. The country is one of the major producers of off-season vegetables.


With five perennial rivers flowing across the state, Himachal Pradesh has the potential to contribute 26% of India’s total hydropower needs. The installed hydropower capacity in the state is 2910 MW.


Himachal is home to the largest drug center in Asia. More than 300 pharmaceutical companies, including Ranbaxy, Dr.Reddy, Morepen, and Torrent Pharmaceuticals, have established operations in the state. 

12. Jammu and Kashmir

All over the world known for its luxurious pashmina wool. The beauty of Jammu and scenic Kashmir has made it a favorite destination for tourists around the world. Jammu Kashmir, the country’s most northern state. The economy of Jammu and Kashmir is mostly dependent on agriculture, especially horticulture and floriculture. Known for handloom, the state is the second-largest wool producer in the country and famous for pashmina wool. Kashmir is also famous as the largest producer of saffron and is one of the most expensive spices in the world.

  • India is the largest producer of saffron and one of the most expensive spices globally
  • The Indian state only has an independent constitution and science

Key sectors


Kashmir attracts tens of thousands of pilgrims every year due to its beauty.


700,000 families, comprising of 33 lakh people are engaged in the horticulture industry in Jammu and Kashmir, India. The state exported $ 945 million worth of dry fruits in the 2015-16 year.

 Handicrafts and Handloom

The state has over 520 registered handlooms co-operative societies with approximately 38,000 handlooms and 3018 handicrafts societies. 

13. Jharkhand

The largest producer of Tasar Silk in India. Jharkhand is one of the richest mineral regions in the world and boasts 40% and 29% of India’s mineral and coal reserves, respectively. Mineral production during the 2017-2018 period in the state was 2,070.39 crores ($ 286.96 million) and 844.38 crores ($ 120.82 million) between April and July 2018.

It hosts one of the largest commercial manufacturing units in India by Tata Motors. Jharkhand is an ideal destination for power projects, cement factories, automotive component units, etc. due to its high availability of minerals and minerals such as steel and coal. Foreign Direct investment

  • The second-largest producer of horticultural crops – green peas and tomatoes
  • Contributes to over 20% of all steel production in India
  • The largest producer of Tassar silk in India with 76.4% of the total output
  • It owns about 40% of the country’s mineral wealth

Key sectors


The country is the largest producer of silk Tassar (non-mulberry silk) in the country, with a 76.4% share in total output. In 2017-2018, the state’s raw silk production reached 2,220.0 million tons and 949.3 million tons for the fiscal year 19-19 to December 2018. 

Food processing

Jharkhand is a producer of a wide range of fruits and vegetables, both for local consumption and export requirements. Throughout the year, essential crops such as broccoli and cabbage are facilitated and promoted, due to the favorable climate of Jharkhand.


Jharkhand currently contributes to about 25% of the total steel produced in the country.


A total of 12.3 GW of power is slated to be installed by 2018. Availability of power 24 * 7 is critical to support its rapid industrialization and economic growth plan. 

Automobile and auto components

Over 800 auxiliary cars and modular automobile components are present in Jamiesedpur and Adityapur Auto Mass. This group creates 20,000 + direct jobs and 50,000 indirect jobs. 


The country is home to tremendous biodiversity, temperate climate, rich cultural and historical heritage, places of religious worship, and ethnic aspects, making it the ultimate destination for tourists.

Health and medical education

The state is keen on establishing highly specialized hospitals, medical colleges, nursing colleges, paramedical institutes, and other health services within the framework of the public-private partnership model.


The country has launched Jharkhand’s IT / International Communications policy, BPO / BPM policy, ESDM Policy, and start-up policy to attract investments in this sector, aiming to accelerate the growth of the IT sector.

14. Karnataka

Karnataka is the largest software exporter in India, the second-largest chip design center, the fourth largest auto producer and the fourth largest contributor to industrial electronic production. Karnataka is the center of information technology in India and home to the fourth-largest technology group in the world. In the period 2017-2018, the total exports of commodities from the state reached 18.05 billion USD. Foreign Direct investment

Karnataka boasts varied flora and fauna and a natural coastline of 320 km, which makes it a natural tourist paradise. The number of tourists visiting the state increased from 36.7 million in 2006 to 102.3 million in 2017. The country attracted FDI inflows of $ 35.69 billion during the period from 2000 to 2018, 

Acc. to data published by the Ministry of Industry Promotion Internal trade (DPIIT).

  • The largest source of software in India
  • The largest manufacturer of space and defense equipment in India
  • The second-largest chip design center

Key sector


Karnataka is home to 20% of India’s $ 1.6 billion total garment production, and Karnataka accounts for 65% of silk production, 12% of wool manufacturing, and 6% of the country’s cotton production. 

Heavy engineering and machine tools

Karnataka is the second highest producer of special purpose and heavy electric machines in India. Bengaluru produces about 60% of the total machine tools in India by value.

Automobile and Auto Components

Karnataka is the fourth largest state in automobile production, contributing 8.5% to the national product. 

Information Technology

Karnataka has emerged as an IT center in India. The country is the fourth largest technology group in the world, and it has more than 3,500 IT companies employing four million direct and indirect professionals.

Agricultural and food manufacturing

Karnataka accounts for 75% of flower production, 70% of coffee production, and 47% of silk production in India. There are seven dining gardens, a spice garden, and a seafood garden established in the state.


More than 60% of India’s biotechnology companies have a base in Bangalore, and the state pays 50% of the total revenue in India’s biotechnology sector.

Electronic system design and manufacture

Karnataka has contributed 10% of the country’s electronic industrial product and is home to 70% of chip designers in India, making it the second-largest chip design center in India.

Aerospace and Defence

The country attracts 65% of the country’s airspace investments. Karnataka is the first country to come out with the country’s airspace policy. The Karnataka Aerospace Policy has identified an investment potential of $ 12.5 billion in this sector during the period 2013-2023 and plans to develop airspace groups in different areas of the state.

15. Kerala 

With the highest literacy % in India. Kerala known as the country of God itself is one of the few countries that have successfully marketed its natural beauty to the leisure tourism sector. The country’s unique heritage and cultural diversity have attracted tourists from all over the world. Foreign direct investment has made technological progress in various industrial sectors and has resulted in a growth in export production. Foreign Direct investment

  • The largest producer of Coir and Coconut in India
  • The highest literacy rate is 93.91% in the country
  • India’s highest distance and fiber optic cable penetration
  • Kerala represents 75% of spice exports from India

Key sectors


Beaches, wildlife reserves, remote areas, and hill stations make Kerala a popular holiday destination for tourists. It is also famous for medical tourism and offers medical treatments such as Ayurveda.

Food processing

The country is a major source of spices, marine products, cashew nuts, coffee, and pickles. Two-thirds of the country’s export earnings come from the food processing industry.

Textile and Handlooms

The country is home to 48 cooperative societies and produced manual loom worth $ 53.4 million in the 2015-2016 period. Handicrafts with ivory, bamboo, palm leaves, and stones are famous in Kerala. 

Information Technology

The country is a hub of more than 500 IT companies, employing more than 50,000 professionals. IT organizations such as Techno Park in Thiruvananthapuram and Kollam make Kerala state a major developed country in IT-related infrastructure.

16. Madhya Pradesh

Madhya Pradesh is one of the states of India with rich in natural resources – fuels, minerals, agriculture, and biodiversity. It is also the sole diamond-producing state. Production of Diamond in the state stood at 8,039 carats from. It is the no. 1 state on India for agricultural products. It produced 14% of India’s total cement. It is a leader in producing coal, manganese, copper and glass sand.

Key sectors

Agriculture and Food Processing

As we all know Agriculture is only the source of livelihood for the people. In the year 2017-18, the state produced approx. 42.14 million mt of food grains in the country. 


The textile industry is one of the key sectors of Madhya Pradesh. The state is one of the major cotton-producing states in India.


The twenty-five sanctuaries, 10 natural parks, 6 projects to save tigers, and 2 Jyotirlingas attracts a huge crowd every year. 

Renewable Energy

The renewable energy capacity is stood at 7,200 MegaWatt till 2018, which is more than fourfold if we compared it with 1,790 in 2012.


The state is emerging as a pharmaceutical manufacturer having more than 280 pharmaceutical units in the states only. 

16. Maharashtra

Home to the world’s largest movie industry: Bollywood.

It is the third-largest state in the country, occupying approximately 9.4% of the total geographical area. The country is well connected to all major markets with three international airports, more than 303,000 km of the road network, and 6,165 km of the rail network. Foreign Direct investment

The world’s largest film industry by viewership – Bollywood is based on Mumbai. The largest crude oil producer (overseas) in India in Upper Bombay The second-largest producer of cotton, sugar cane and bananas in India Contributes to 35.1% of India’s car production by value

Key sector


This sector is the second-largest generator of employment for skilled and unskilled labor in the country. The country has 14 private textile parks and ten government parks that are formed with delivery and operation facilities.


Maharashtra provides a wide range of tourist attractions such as caves, streams, beaches, mountains, monuments, and Fort to attract tourists. In 2017, the country had 119.2 million domestic tourists and 5.08 million foreign tourists.

Food processing

The country’s major processing industries include sugar, milk, poultry, rice, flour mill, edible oil, and fruit and vegetable units. The country is the largest grape producer in India and gives impetus to grape processing and winemaking through a dedicated industrial policy and three wine parks.

Gems and Jewellery

Maharashtra is one of the major states of India with gem reserves and mining potential. 

Automobile and Auto-Components

The country represents 35% of the country’s production of cars by value. Major auto centers in the state include Pune, Nashik, Aurangabad, and Nagpur.

Information Technology

The state occupies 20% of Inia’s software exports. The govt. have launched services related to Wi-Fi , which will connect 500 hotspots across Mumbai, as part of the Smart City project.

Pharmaceutical and biotechnology

Maharashtra accounts for more than a third of the country’s biotechnology revenue. The state contributes 20% to India’s pharmaceutical production.

17. Manipur

Manipur is India’s largest passion fruit producer. Manipur has the advantage of operating as a “gateway to the east” in India through the town of Moreh, the only possible overland route for trade between India, Myanmar, and other Southeast Asian countries. With about 3,268 sq km of the area covered by bamboo forests, Manipur is one of the largest bamboo producing states in India and a major contributor to the country’s bamboo industry. In 2017, the country accounted for 10,687 square kilometers of bamboo. Foreign Direct investment Manipur has the largest number of handicraft units, as well as the largest number of craftsmen consisting of skilled and semi-skilled craftsmen in the entire northeastern region. 

  • Rows # 4 in a number of looms in India
  • One of the largest bamboo producing countries in India
  • Kacha Limon Festival celebrated every year to encourage
  • investment in the geographical indication crop (GI)

Key sectors

Agriculture and the Allied Sector

The agricultural sector contributes a large share of the country’s GDP. Rice is the staple food and is grown in the hills and plains, and accounts for about 98% of the total food grain production in the state.


Manipur has four varieties of silk, berries, Eri, Muga, and Oak Tasar and the Manipur Syria Agricultural Farming Project has started to provide employment opportunities, especially for women. Raw silk production in Manipur during the period 2018-2019 (to December 2018) reached 335 metric tons.

Bamboo production industries

Manipur is one of the largest bamboo producing states in India and a major contributor to the country’s bamboo industry. Manipur represents about 25% of the total growing stock of bamboo in the northeastern region of India and 14% of the country. Three joint bamboo processing centers have been established in Taminglong, Churashanpur, and Imphal. The Manipur government is taking a bamboo technology park in Kadamtala, Jiribam, with an estimated cost of $ 104.3 million USD.

18. Meghalaya

Producer of One of The Finest Varieties of Turmeric, The Lakadong Turmeric. Meghalaya, with an average annual rainfall of 1150 cm, receives the highest amount of rain in the country. The variety of soils, including red pickles and lapis, supports various agricultural crops such as rice, corn, pulses, oilseeds, cotton, and jute. During 2018-2019, the country produced 324.67 thousand tons of fruits and 91.70 thousand tons of spices. Foreign Direct investment Meghalaya’s capital, Shillong, also known as the “Rock Capital of India,” “has received visits from world-famous rock bands. Acc. to the DIPP, flows have reached Cumulative foreign direct investment to the northeastern states, from April 2000 to December 2018, which is the US $ 113 million.

  • One of the finest quality turmeric products, turmeric lakadong
  • One of the top strawberry producers in India
  • Cherrapunji is the most humid region in the world
  • Shillong: “The Rock Capital of India” has received visits from world-famous rock bands

Key sectors

Agriculture and horticulture

81% of the state’s population depends on agriculture. The turmeric in Meghalaya, cultivated in the hills of Gentia, is considered the best in the world.

Mineral industry

Gifted with a rich natural resource base of coal, limestone, uranium, and granite, the country offers tremendous investment opportunities in this sector.


The state is home to Nongnum Island, the largest river island in India and the second largest river island in Asia. There are two national parks and three wildlife reserves in Meghalaya. This makes Meghalaya one of the most beautiful states in India.

Hydroelectric power

Meghalaya has a proven hydroelectric capacity of 387.2 MW as of January 2018, and the total hydroelectric potential is estimated at 3,000 MW.

19. Odisha

The largest producer of metals and minerals – aluminum, steel, bauxite, chromite, and iron ore. Odisha has emerged as a major country in the metallurgical and metal industries. Odisha has contributed the largest share of India’s mineral production by value. The second-largest publicly owned port in the cargo handling capacity in Paradip The main product of horticultural crops – brinjal, cabbage, sweet potato, cashew nut The largest producer of minerals and metals – aluminum, steel, bauxite, chrome, and iron ore The second-largest producer of tiger shrimp in the country

Key sectors

Chemicals and petrochemicals

Odisha is one of four states in India where the Oil, Chemical, and Petrochemical Investment District (PCPIR) is established with a refinery of 15 MMTPA of expected energy. 

Food processing

With ten climatic, agricultural regions, and eight major soil types favorable to the production of a variety of crops, the country is the fourth-largest producer of vegetables in India. The country ranks # 2 in terms of the production of tiger prawns in the country.


Odisha’s tourism sector contributes 13% to its GDP. With a record of 12.6 million arrivals in 2016, the state government has set up tourism circles such as Golden Triangle Tours and Lake Chilica.

Metal Sector

The state owns 99% of the chromite deposits in India, 51% of the iron ore deposits, and 39% of the bauxite deposits. Odisha produced $ 579 million worth of mineral resources in 2016-2017.

20. Punjab

India’s “grain warehouse,” Punjab, has the largest irrigation farming region in India. The state’s very fertile lands produce rice, cotton, sugar cane, pearl and corn millet, barley, and fruit. The largest crop grown here is wheat. The confluence of five rivers makes the Punjab farmland rich and productive. About 82% of the country’s land is cultivated, compared to the national average of 40%. The Punjab Roads, Railways, and Air Transport Network, Communication, Bridge Building, and Infrastructure Facilities are among the best. Foreign direct investment will facilitate research and encourage new technology. This can efficiently solve the points of tension in the Punjab agriculture sector.

• The largest producer of machine tools, hand tools, and bicycle

components in India

• India # 1 in terms of wheat and rice production

• The main product of horticultural crops – carrots, peas,

mandarin, radishes, and melons

Food processing

The government has made various efforts to assist investments owed to the food processing industry. Basmati rice exports from Punjab amounted to US $ 991.14 million in fiscal 2018 and the US $ 597.22 million between April and December 2018. Agriculture and related sectors account for nearly 21% of GSDP in Punjab compared to an average in India of 14%.

Textiles and garments

In the fiscal year 2019, Punjab exported cotton yarn worth $ 510.65 million, and ready-to-wear (man-made fibers) worth $ 105.39 million. The country accounts for 95% of woolen knitting production in India and India, 85% of sewing machine production in India, and 75% of India’s sporting goods production in India.

Lighting engineering

With a rich industrial base of MSME units, the country accounts for 92% of India’s bicycle parts production and 75% of India’s bicycle production.

Renewable and non-renewable energy

It was ranked # 1 among all Indian states for solar energy progress at the World Bank in 2015. The country plans to generate an estimated 5,400 megawatts of renewable energy through renewable resources by 2022.


Leading pharmaceutical manufacturer and exporter. Telangana, India’s 29th state, was formed in June 2014, and its

capital is Hyderabad. The state’s installed power capacity is more than 15,000 MW, with more than 40% of green energy sources contributing. There are 67 SEZ notices in the state. Foreign Direct investment The capital, Hyderabad, is the center of the information technology (IT) and pharmaceutical sectors. During the 2017-2018 period, exports of IT and ITeS products from Telangana amounted to Rs 93,422 crore (the US $ 14.50 billion). IT companies are there like Facebook, Google, IBM, and Microsoft have a big presence in Hyderabad. 

  •  India’s highest solar power in 2017
  •  The second-highest number of (30) operational export regions
  • in India
  • The third-largest producer of long-staple cotton in India

Key sectors

Information Technology

Telangana contributes 10% to India’s IT exports, and Hyderabad is the second-largest contributor to the country’s IT export earnings.

 Life science

The Hyderabad region in the state contributes more than 30% of the country’s drug production and accounts for 44% of the total exports. Anan intelligent environmental environment that creates a new international standard for sustainable industrial cities.


Telangana is home to about 49,112 power looms and 627 woven cooperative societies. The state has more than 120,000 weaver loom in everything and will be home to the largest textile park in India, which comes in Wandaghal.

Metals and Minerals

Government coal deposits account for a 20% stake in coal deposits in India. Granite, coal, limestone, bauxite, and mica are the main mineral resources in Telangana.

22. Tamil Nadu

The highest contributor to renewable energy capacity in India. Tamil Nadu, the land of Sars Kangivaram, houses the largest

spinning industry in the country. The urban state has the second-largest coast– 1,076 km – in India and an excellent network of roads and railways. It ranks one among the states in terms of a number of factories and industrial workers. According to the Department of Public Information in the Ocean, the cumulative flows of foreign direct investment in Tamil Nadu and Puducherry, from April 2000 to December 2018, amounted to $ 29.28 billion. During the period 2017-2018, the total merchandise exports from the country reached USD 29.75 billion. During the period 2018-2019, the value of exports amounted to 22.53 billion USD.

  • The largest number of (37) operational export regions in
  • India
  • The largest producer of eggs and the second largest number
  • of poultry in India 
  • Ranked # 1 in the country by number of local tourists arriving
  • in 2017
  • 1 India by number of factories and industrial workers
  • The main producer of loose flowers is tapioca, banana, and
  • coconut
  • The largest producer of cotton yarn

Key sector


The only Indian state of Tamil Nadu with four international airports, SEZs (Sparks), is planning to boost investments in this sector, which is expected to create 100,000 direct and indirect jobs for highly skilled resources.

Food processing

Tamil Nadu has different types of soil, and seven climatic, agricultural regions provide a great opportunity to grow a variety of horticultural crops. Seafood and spices are also a major part of the country’s agricultural exports.

Textiles and garments

Tamil Nadu ranks first in garment production and second in textile production in India. It includes India’s largest yarn industry, accounting for nearly 40% of the country’s total installed capacity.


Tamil Nadu is the 4th largest software exporter. The state has the largest bandwidth of telecom and the highest distance in India, with 14.8 terabytes in the urine. IT exports from the country represent more than 10% of the country’s total IT exports. IT and ITeS exports from Tamil Nadu increased to 1,111.79 billion rupees ($ 17.25 billion) in 2017-2018, with an annual growth rate of 8.55%.


Tamil Nadu ranked first in terms of a number of domestic tourist arrivals and second in a number of foreign tourists arriving in 2017. The state is also one of the leading medical and health tourism destinations in India.

23. Uttarakhand

India’s third highest hydropower potential UttarakhandLargely hilly terrain, Uttarakhand is a relatively new country formed in the year 2000. It has almost all the agro-climatic regions, which provide commercial opportunities for flower growing and horticulture. The presence of numerous hill stations, wildlife parks, pilgrimage sites and excursions make Uttarakhand an attractive tourist destination. In 2017, the number of domestic tourists to the state was 34.36 million, and the number of foreign tourists exceeded 0.13 million. Uttarakhand is one of the fastest-growing states in India, thanks to the massive growth in capital investment resulting from favorable industrial policy and generous tax benefits. The country currently produces about 3,750 MW of hydroelectric power, while it has the capacity to generate more than 18,000 MW. According to the Ministry of Industry and Domestic Trade Promotion, the cumulative flows of foreign direct investment during the period from April 2000 to December 2018 amounted to approximately US $ 686 million.

  • The second-largest producer of mineral minerals in India
  • The main producer of apples and nuts in India
  • Home to the first agricultural university in India

Key sector

Agriculture-based industries

The Mega Food Park was established in Haridwar as part of the Mega Food Park plan of the Ministry of Food Processing

Industries. Four agricultural export regions have also been announced as part of the AEZ plan of the Government of India to fade out and grow flowers, herbs, medicinal plants, and basmati rice.

Information Technology and ITES

With the establishment of India’s Software Technology Gardens (STPI) earth station and other stations planned in Dehradun, Uttarakhand provides a high-speed connection. IT product exports reached $ 350 million in 2015.

Pharmaceutical and aromatic preparations

The state has three main pharmaceutical groups, with over 300 units having the expertise to manufacture a full range of

pharmaceutical products. Aromatic plants such as lemongrass, citronella, marmoset, chamomilla, Sarasota and Japanese mint are widely used in the cosmetic industry.


Over a million tourists visited Uttarakhand in 2015-2016. The Tourism Policy of Uttarakhand was launched in 2017, which aims to create new parks and install new rope routes that can be exempt from paying the entertainment tax. Encouraging and developing tourism as a major source of employment and revenue generation in the country.

24. West Bengal

The largest producer of rice and jute in India. West Bengal is the third largest rice producer in India. The country’s rice production reached 11.68 million tons in 2018-2019. The country is also a major fish producer. During the period 2017-2018, the country produced a total of 1.74 million tons of fish, and it is expected that fish production for the period 2018-2019 will reach 1.85 million tons. West Bengal is the second largest tea producer in India and is home to the internationally acclaimed Darjeeling tea set. It obtained high foreign direct investment, which led to the development of infrastructure in the country.

  • The second-largest tea producer in India
  • The largest producer of vegetables in India
  • The largest inland waterways in the country in terms of
  • prevalence, density, and access
  • The third-largest in terms of road coverage in India
  • 11th place amongst Indian states in the rankings based on EoDB and implementation of reforms.

Key sectors

Information Technology

The state is a major IT hub with over 500 IT companies employing more than 135,000 people directly or indirectly. It is estimated that total exports from the state’s IT sector exceeded Rs 19,000 crore ($ 2.83 billion) in 2016-2017.


The West Bengal region, which is located in India, with a total number of 17,900 units, aims to increase the sector’s share to 10% of the country’s GDP by the period 2022-2023.

Agriculture and horticulture

West Bengal provides a diversified environment for agricultural and horticultural production with six climatic, agricultural regions. The production of fruits and vegetables in West Bengal between 2016-2017 was between 3.7 million and 25.5 million tons, respectively. The state is the third-largest rice producer and the second-largest potato producer in the country.

Tea production

During the period 2017-2018, the country produced 387.86 million kg of tea, which represents 29.27% ​​of the total tea

production in India. Tea production between April and October 2018 was 289.32 million kg. The state is the second largest state of tea growing in India.


The coast, which spans more than 150 km, provides many opportunities for inland fishing and fish farming. West Bengal is also a major fish producer. During the period 2017-2018, the country produced a total of 1.74 million tons of fish, and it is expected that fish production for the period 2018-2019 will reach 1.85 million tons.

Metals and Minerals

The country represents about 10% of the total steel production capacity in the country. Durgapur is popularly known as the “Steel City of East India,” and it has two main steel mills: Durgapur Steel Factory and its alloy steel factory. West Bengal is the third largest metal producer in India. Coal accounts for 40% of the minerals mined in the state.


The state government has identified 11 potential tourist sites in the state, where it will develop the tourism infrastructure by establishing partnerships between the public and private sectors. The state saw the arrival of nearly 76 million domestic and foreign tourists in 2016.

25. Uttar Pradesh

is the most populous state in India, with a large pool of skilled, semi-skilled, and unskilled labor. Alternately, its population is also seen as the largest consumer base in the country, with a population of about 200 million people.  Foreign Direct investment The high number of livestock in the country makes it one of the major producers of leather products. The country is the leader in the production of multiple foods and horticultural crops such as wheat, potatoes, mangoes, etc. Uttar Pradesh is the third-largest producer of thermal energy and the second-largest producer of Heidel energy in India. With an industrialized economy, Uttar Pradesh is one of the main attractions of foreign direct investment.

  • The country’s largest milk producer produced 27,770,000 tons
  • of milk in 2016-2017
  • The largest farms for horticultural crops: oscar, guava,
  • mango, peas, and potatoes
  • The Taj Mahal, the world’s first Seven Wonders of the World is
  • located in Agra, Uttar Pradesh
  • Uttar Pradesh occupies the third position among the Indian

states in terms of the number of small and medium-sized enterprises (Ministry of Micro, Small and Medium Enterprises).

Key sectors


The capital, Lucknow, which is also the capital of the state’s biotechnology has about 3,000 highly qualified scientists working in the city’s drug research laboratories. The state aims to bridge the gap between potential and actual yields with the help of biotechnology.

Automatic components

In 2016-2017, state and automobile and two-wheel sales reached 2.6 million units and 21.1 million units, respectively. The state is home to a large group of suppliers, mainly in Noida and Ghaziabad. The auto industries in Uttar Pradesh also benefited from the newly built 165 km industrial Yamna Rapid Industrial Development Authority, which ensures the planned development of areas along the road.

Food processing

The country, which is a leader in the production of wheat and sugar cane, has a total of 9 climatic, agricultural regions. It produced 134 million tons of sugar in the 2015-2016 period, which represents 21% of the country’s total milk production.

Information Technology and ESDM

UP Electronics Co., Ltd. was established to promote and develop information technology and electronic industries in the state. De Kore Science and Technology, a manufacturer of optical optic devices, has plans to produce lamps from India’s first advanced semiconductor laboratory (Alingan facility) in Noida SEZ. The country is the fourth-largest source of software, issuing services worth $ 4 billion in 2014-2015.

Chemicals and petrochemicals

The country accounts for nearly 6% of all chemicals produced in India. The abundance of raw materials for fertilizer production in Bundelkhand is an incentive for chemical companies to establish their plants. An Indian oil company refinery is located in Matura, with a capacity of 8 million metric tons annually.


Uttar Pradesh has 12 large cement factories with a combined capacity of 7.2 million tons and is ranked ninth in cement production in India. Limestone production in the state reached three million tons in 2014-2015


Uttar Pradesh is one of the most preferred states in the tourism field where the Taj Mahal, is one of the 7 wonders of the World is located in Agra. Other prominent tourists and historical destinations are Varanasi, Bebrahua, Kaushambi, Shravasti, Kochi Nagar, Agra, Lucknow, Chitrakot, Jhansi, Allahabad, Vrindavan, and Beirut. The country ranked second and third in terms of the number of domestic and foreign tourists, respectively, in 2017.


Uttar Pradesh is the second-largest producer of leather goods and contributes about 25% to the total production of leather and leather products in India. Kanpur and Agra are the major leather and shoe manufacturing centers in India. The state is the largest exporter of saddle goods in India.

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