NITI Aayog has released the inaugural Investment Friendliness Index (IFI), ranking Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha as India’s Top Performers for creating investor-friendly ecosystems. The index evaluates states and Union Territories on infrastructure, governance, business climate and policy reforms to strengthen competitive federalism.
Key Highlights
- Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha ranked as Top Performers in NITI Aayog’s Investment Friendliness Index.
- The index evaluates all 28 states and 8 Union Territories/J&K on investment attractiveness.
- States were assessed across infrastructure, business climate, governance, regulatory ease and financial health.
- The initiative aims to promote competitive and cooperative federalism under the Viksit Bharat @2047 vision.
New Delhi, July 18: NITI Aayog has released the country’s first Investment Friendliness Index (IFI), recognising Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha as Top Performers for creating favourable conditions for investment and economic growth. Announced in the Union Budget 2025-26, the index is designed to strengthen competitive and cooperative federalism by encouraging states and Union Territories to undertake reforms that improve the investment ecosystem.
The Investment Friendliness Index assessed all 28 states and 8 Union Territories, including Jammu & Kashmir, on their ability to create, enable and sustain an environment conducive to investments. The evaluation covered key parameters such as infrastructure, business climate, natural and human resources, government policy, regulatory ease, institutional environment, financial health and environmental resilience.
Based on their overall performance, the states and Union Territories were classified into four categories. Top Performers secured scores above 50, while Frontrunners scored between 45 and 50. States with scores between 40 and 45 were placed in the Emerging Performers category, while those scoring below 40 were designated as Aspiring States. Alongside the five Top Performers, 15 states were categorised as Frontrunners, while eight states and Union Territories each were placed in the Emerging Performers and Aspiring States categories.
To ensure fair comparisons, NITI Aayog grouped the states and Union Territories into Large States, Hilly and North-Eastern States, and Union Territories and City States, taking into account variations in geography, economic scale and administrative context. Gujarat emerged as the highest-ranked Large State, followed by Maharashtra and Tamil Nadu, with these three also leading the overall national rankings.
Among the Hilly and North-Eastern States, Uttarakhand secured the top position, followed by Assam and Himachal Pradesh. In the Union Territories and City States category, Goa ranked first, followed by Jammu & Kashmir, Delhi and Chandigarh, reflecting their strong investment ecosystems and governance frameworks.
The report highlights that while national policies provide strategic direction, state governments play a critical role in attracting investments through quality infrastructure, transparent regulations, efficient institutions and stable policy frameworks. The Investment Friendliness Index is expected to encourage continuous reforms, facilitate the adoption of best practices and strengthen India’s competitiveness as it works towards the Viksit Bharat @2047 vision.
The launch of the Investment Friendliness Index marks an important step in promoting healthy competition among states while encouraging reforms that improve the ease of doing business, attract investments and accelerate inclusive economic growth across India.
