Ahmedabad, the best Indian city for SME businesses

Bangalore: The growth of any country’s economy is backed by the strength of small and medium enterprises (SME) in the country. The SME sector contributes atleast eight to nine percent of India’s GDP and employs more than four crore people.

Now the question is which city is the best to start an enterprise? In a recent report by Ernst & Young (E&Y) and Franchise India Ahmedabad is the frontrunner in the list of cities for successfully running small scale businesses. The city has a good scope in the pharmaceutical, leather footwear, textile machinery parts, gems and jewellery health and wellness services. Gujrat is known for being the best state for entrepreneurs and it has seen micro, small and medium enterprises (MSMEs) growing. 

Bengaluru, which is the ideal city for B2B services, ranks second in the list. The city is known for supplying hand tools, auto component and hosiery sectors and it ranks second in the list of all cities for electrical goods and apparel manufacturing.

Mumbai, the commercial capital of India ranks third in the list as it serves an ideal environment for machine tools, electronic goods and B2B services.

Hyderabad, which is ideal for information technology-enabled services (ITeS), offshore services, bulk drugs, and leather tanning has been ranked as India's fourth best city to start a business.

New Delhi is rated as the fifth best city to start small business in sectors like rubber, auto components and food processing. It ranks 5th among the best Indian cities to do business in.

Some of the other cities that could find a ranking in the chart are Chennai, Surat, Faridabad, JAipur and Gurgaon.