STATE FOCUS | INDIANA
key industries – automotive, steel, aerospace, advanced materials, pharmaceuticals and more. The Indiana Economic Development Corporation (IEDC) reports that the state has the highest percentage of manufacturing jobs in the US. More than 540,000 people are employed across automotive, aerospace, primary metals, machinery, chemicals, plastics and medical device manufacturing. Furthermore, it is the country’s biggest producer of steel – more than a quarter of US steel is made there – and it is home to many major automotive companies, among them GM, Toyota and Subaru. Eli Lilly and other global pharmaceutical companies have also made it their home. Its business tax climate is also highly attractive and a key economic driver. Indeed, the Tax Foundation’s 2026 Business Tax Index shows the state as 10th in the nation on its tax competitiveness index, and best in the Midwest. It has a flat 3% individual income tax rate, 4.9% corporate income tax rate, 7% state sales tax rate and 0.77% effective property tax rate on owner-
occupied housing value. Furthermore, there is no estate tax or inheritance tax. “Our favourable tax climate is clearly a
key component of Indiana’s business-friendly environment,” says Indiana Chamber president and CEO Vanessa Green Sinders. “But our diversity of industries, centralised location and abundance of higher education institutions fuelling innovation are key contributors too. Our legislative leaders are generally business- focused as well, having recently created the Indiana Office of Entrepreneurship and Innovation, largely to help our main street businesses thrive, as just one example.” “Companies and site selectors often have Indiana on their radar and the Indiana Chamber is pleased to have played a major part in building that climate,” she adds.
The rich history of hoist The state is taking a very forward-looking approach to attracting investment. It is targeting
$1trn in investment from tech companies over the next five years, $13bn of investment in the development of battery technology for electric vehicles and further fuel to build on its leading position as the biggest exporter of pharmaceuticals in the US. “Indiana’s economic climate today is stronger than its Midwest neighbours, thanks to powerful growth in manufacturing and pharmaceuticals,” says Jon Harkrider, VP of sales at Hoosier Crane, the largest Indiana-based crane company. “It is stable but slowing. Growth continues, but at a more modest pace than recent years.” Tariffs and trade volatility are driving up costs and, to some extent, hurting employment momentum. Life sciences and AI infrastructure are giving the local economy a welcome boost, but they cannot offset manufacturing headwinds alone. Nevertheless, the state is not about to enter a recession. Forecasts for 2026 show continued, albeit slower, economic expansion for Indiana.
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