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Foreign businesses often face a critical decision when planning export operations in India: which state or SEZ offers the best foundation for global markets. Ports like Mundra and JNPT load goods from nearby factories, while industrial corridors move products efficiently to overseas buyers. Location directly influences export speed, operational costs, and supply chain reliability.
Ports like Mundra, with 338 million tonne annual capacity and rail connectivity for 80 rakes daily, link factories to Middle East and Europe routes. JNPT complements this as a key gateway, fuelling SEZ exports up 4 percent to USD 163.69 billion.
For business in India aiming to serve customers overseas, picking the right state or Special Economic Zone matters a great deal. The smart choice of location unlocks quicker exports, tax savings, and easy approvals. This blog dives into the best states and SEZs for foreign businesses building export-focused setups. We back every point with fresh data from trusted government sources.
States vary widely in their export strengths. Some shine with strong ports and industrial belts. Others lead in services or advanced manufacturing. SEZs are built on the strengths of each state by creating duty-free zones. They allow business in India to import materials without taxes, handle taxes simply, and use one-stop approvals.
In FY 2023-24, SEZ exports hit USD163.69 billion, up 4 % from the year before. India runs 423 approved SEZs, with 280 active ones, home to thousands of units in manufacturing and services. Picking the right spot boosts access to ports, perks, rules support, and supply chain speed.
India’s export map is dominated by a few states that consistently deliver in merchandise exports, FDI, and infrastructure. In FY 2023-24, they contributed over 56 % of the country’s total exports of USD 437 billion. With robust ports, SEZs, and specialised clusters, Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh offer the ideal foundation for foreign businesses seeking global reach.
With USD 146.49 billion in exports, Gujarat is India’s top state for petrochemicals, chemicals, gems, and textiles. Its ports, GIDC estates, and 21 operational SEZs streamline duty-free operations, while FDI-friendly policies make high-volume exports seamless.
USD 72.50 billion in exports comes from engineering goods, pharma, and chemicals. SEEPZ and other SEZs provide manufacturing clusters for gems and jewellery. Mumbai and JNPT ports connect the state to international markets efficiently.
Exports of USD 40.67 billion are powered by automobiles, electronics, textiles, and smartphone shipments. 51 SEZs create dense clusters and provide skilled labour, while Chennai and Ennore ports support high-value goods.
USD 27.88 billion exports focus on electronics, engineering goods, and IT services. 37 SEZs combined with Mangalore port enable rapid delivery to global markets. Bengaluru’s IT ecosystem draws high-value FDI.
USD 21.69 billion in exports, led by electronics, textiles, and mobile units in Noida and Greater Noida. Inland clusters and emerging SEZs offer cost-effective expansion options for foreign investors.
India’s Special economic zones are pivotal in boosting exports, offering duty-free imports, GST exemptions, and streamlined approvals. In FY 2023-24, 280 operational SEZs hosted 5,711 units, employing 3.07 million people and generating approximately USD 163 billion in exports. Investments reached more than USD 75 Billion, with top markets including the UAE, US, and UK.
Tamil Nadu leads with 51 SEZs near Chennai and Ennore ports, supporting automobiles, electronics, textiles, and IT. Skilled labour and FDI-friendly policies make it a strong destination for high-value goods like smartphones.
Maharashtra’s 38 SEZs include multi-sector hubs like SEEPZ, specialising in gems, jewellery, engineering, and pharmaceuticals. Access to JNPT port and grants for textiles and pharma strengthen export capabilities.
With 37 SEZs, Karnataka focuses on electronics, pharma, and IT. Bengaluru’s tech ecosystem and Mangalore port support fast global shipments, attracting FDI and fostering R&D.
Gujarat’s 21 SEZs, including Kandla (USD38 billion exports), leverage Mundra and Kandla ports for petrochemicals, commodities, and chemicals. Industrial estates and FDI policies enhance manufacturing efficiency.
Telangana hosts 38 SEZs around Hyderabad, focused on pharma, IT, and biotech. Skilled talent and versatile zones attract foreign firms and promote high-value exports.
Andhra Pradesh’s SEZs near Visakhapatnam port cater to autos, electronics, and multi-product exports. Coastal logistics and policy support make it suitable for scalable, diverse operations.
Special economic zones deliver clear wins. Duty-free imports, zero-rated GST on exports, and single approvals lower hurdles. States pile on with cash aid, power cuts, and market help via schemes like EPCG for tax-free gear.
Gujarat aims for 15 percent of national exports through SME zones. Maharashtra backs textiles and pharma with grants.
Top Incentives:
Start with SPICe+ on the MCA site for quick setup and 100 percent FDI ease. Coastal spots like Gujarat suit heavy shipments. Check SEZ fit for your field.
Setup Steps:
Choosing the right state or SEZ is not just an administrative step. It defines how fast goods move, how easily operations scale, and how efficiently capital is used. Export success begins with alignment between your business model and your location. When incorporation is placed where systems, policy, and infrastructure work in your favour, daily operations become smoother and growth becomes easier to manage.
Foreign companies that treat location as a strategic advantage, not just a requirement, gain lasting benefits. The right incorporation base strengthens your supply chain, protects margins, and improves delivery timelines. For export driven businesses, where you start in India often decides how far you can go.
