In March 2026, a transformative insight into India’s investment landscape was offered by the Economic Advisory Council to the Prime Minister (EAC-PM). A critical working paper revealed through satellite imagery that India was already 63 percent urban as of 2015, challenging the official estimate of 31 percent. This phenomenon, termed “hidden urbanisation,” highlighted 17 Indian cities, such as Surat, Vijayawada, Rajkot, and Tiruchirappalli, which are expected to be among the world’s 20 fastest-growing urban centres by 2035.
The paper exposed a significant institutional oversight: these urban economies are still classified and managed as rural areas, leading to an infrastructure gap in governance, financing, and land policy. However, it overlooked a crucial professional services aspect—legal, financial, regulatory, compliance, and transactional expertise necessary for substantial capital deployment.
The Emerging Advantage of Proximity
Historically, sophisticated capital relied on expertise concentrated in a few major metropolitan areas. However, the emerging advantage is proximity—not just geographical, but regulatory and contextual. As India’s economic landscape becomes more distributed, so does the necessary professional infrastructure. Now, expertise is increasingly accessible within the same economic corridors where investments occur, becoming a competitive advantage.
The Capital Shift
India’s investment strategy aims for annual levels of 33 to 38 percent of GDP to achieve its 2047 development goals. Investments are no longer confined to primary metros; the Production Linked Incentive scheme has spread manufacturing capacity across 27 states. Notable commitments include Tata Electronics’ ₹27,000 crore semiconductor facility in Assam and Google’s $15 billion AI data centre in Visakhapatnam.
As the retail economy is projected to double to $2 trillion by 2030, tier-2 cities are generating 35 percent of new retail employment. With hiring growth in these areas outpacing primary metros, the professional infrastructure gap is narrowing, and economic geography is becoming more distributed.
Institutional Foundations and Regional Growth
The regional corridors of today are built on the foundation established by India’s leading full-service firms, which have anchored significant transactions across decades of growth. Practitioners trained at these firms are returning to regional markets, prioritizing quality of practice and life over metro prestige, while maintaining national and global connections.
This shift does not displace established firms; rather, it enhances their indispensable role in deploying sophisticated capital. Their comprehensive capabilities in governance, arbitration, and complex transactions remain critical, with expertise now diffusing to emerging economic corridors.
Professional Services in the Heartland
Contrary to the notion of a new trend, professional practices in India’s heartland have long been established. Firms like TLH Advocates and Solicitors in Hyderabad and Kumbhat and Co Chartered Accountants in Chennai have built substantial reputations through sustained, embedded practice. These firms have been preparing for capital influx long before it arrived, proving that the heartland’s professional capabilities are not new but rather unrecognized.
From Jaipur to Indore, specialized practices are advising on complex regulatory, tax, competition, and compliance matters, offering institutional-quality advice with local expertise. This professional layer is becoming indispensable to capital entering India’s fastest-growing markets.
Implications for Decision-Makers
For decision-makers, the availability of local expertise means choices are no longer compromises. Investors in manufacturing, logistics, or fintech can find professional infrastructure that mitigates risks previously associated with heartland investments. The professional services risk premium is compressing, enabling more agile local ecosystems.
Global Capability Centres (GCCs) are finding that professional services often precede economic density, indicating a market correction underway. India’s legal services market, projected to reach $67.4 billion by 2030, reflects this shift, with West India leading growth.
Ultimately, India’s next growth story will be defined not by capital availability but by how efficiently it can access trusted local capabilities. The infrastructure of excellence is already in place, and the race is on to see who capitalizes on it first.
About the Authors: Khushboo Luthra is the Founder of METPRO Advisors and LEXEL LegalTech Advisors. Navneet Bhatia is a lawyer with interests in startups, PE/VC, and public policy.
Disclaimer: The opinions in this article are those of the authors and do not necessarily reflect the views of Bar & Bench.
