Reasons to start IT business in India and the Top 5 Tech Cities.

The global IT sector is evolving at a lightning pace, and India is inarguably on the path to be the world leader. Owing to a myriad of tech cities in India, the country has emerged as the most sought-after place for starting a business. No wonder it is touted as a haven for start-ups looking to start on the right foot.

There is a multitude of factors to consider while starting a business in India, and IT is no exception either. Choosing the right place is one of the most important factors to consider while starting a new business. Here are a few reasons why you should set up your IT business in India.

Why Start an IT Company in India?

  • India is the 3rd largest software start-up ecosystem

This pretty much says it all! India is the world’s 3rd largest software start-up ecosystem and hence setting up an IT business in India opens new avenues for entrepreneurs.

  • Software companies contribute to the nation’s GDP

Every entrepreneur wants to register a software company in India, and there are statistics to back their decision. The Indian IT industry generated a whopping $200 billion in 2021 alone. 

  • India has enormous IT talent

India is known for its enormous IT talent, and with a multitude of tech cities in India, the nation’s IT sector promises growth and expansion. Rapid advancements in science & technology, infrastructure, English-speaking talent, and other advantages have made India the best destination to start an IT business.

Top 5 Tech Cities to Kick start IT company in India


Let’s quickly glance through the top 5 tech cities in India.

1. Bangalore

Touted as the Silicon Valley of India, Bangalore barely needs an introduction. It is the capital of Karnataka, and the boom in India’s IT sector is pretty much attributable to the city that’s home to some of the global IT giants, such as Accenture, Infosys, Cisco, and Wipro, to name a few.

This lively tech city in India happens to be the nation’s top IT exporter, with about 1/3rd of total software exports to its credit.

Indian Institute of Science, IIM Bangalore, Jawaharlal Nehru Centre for Advanced Scientific Research, and National Centre for Biological Sciences are renowned institutions producing exceptional talent. With so much at your disposal as an entrepreneur, you must certainly set up an IT company in Bangalore.

2. Hyderabad

The city of Hyderabad has a lot to offer to budding businesses. On the one hand, it has a talented workforce and great IT culture, & on the other, a fabulous IT culture. Hyderabad was a prime IT hub before Bangalore took over the crown. You will find several biotechnology parks, such as Nano Technology Park, Genome Valley, and Fab City, here.

Hyderabad makes a great choice for those looking to start an IT company in India. Reputed institutions such as Tata Institute of Fundamental Research, IIT Hyderabad, and NMIMS are recognized worldwide.

3. Mumbai

Mumbai offers infinite opportunities to entrepreneurs looking to set up an IT company in India. It provides access to a talented IT workforce and a readily developed infrastructure that solves the majority of your problems.

4. Pune

Pune is one of the major tech cities in India. One of the fastest-growing cities in the Asia-Pacific region, Pune is the epicenter of India’s IT sector. No wonder it ranked 145 out of 440 cities around the world on the ‘Mercer 2017 Quality of Living Rankings’.

Cybercity Magarpatta, ICC Towers, Rajiv Gandhi Infotech Park, Nanospace IT Park, Weikfield, and World Trade Center are some of the best IT parks in Pune.

Whether it is the ease of living, connectivity, lifestyle, IT talent, or education, Pune has everything that the IT sector needs to bloom.

5. Ahmedabad

Last but not least! Ahmedabad is one of the most preferred places to start an IT business. If you are looking to set up an IT company in Ahmedabad and wondering about the benefits, there are plenty of them.

Ahmedabad is the epitome of a diverse culture that offers unparalleled technical support and infrastructure. The city has some of the most prestigious institutions in India – IIM Ahmedabad, Mudra Institute of Communications, and Entrepreneurship Development Institute of India, to name a few.

The Bottom Line

It can be safely concluded that there is no stopping India at the moment, and starting an IT company in India is the best bet. Getting a software company registered in India involves numerous steps and paperwork for which you need a reliable company formation partner with you.

If you wish to know the steps to register a software company in India and need the necessary assistance, feel free to drop FinAccountants a line.

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