Bhubaneswar: Odisha has secured a place among the country’s five most investor-friendly states, emerging as a Top Performer in the inaugural Investment Friendliness Index (IFI) released by NITI Aayog on Friday.
The state shares the highest-performing category with Gujarat, Maharashtra, Tamil Nadu and Goa, reflecting its improving business climate and growing attractiveness as an investment destination.
The Investment Friendliness Index, announced in the Union Budget 2025–26, has been introduced to promote competitive and cooperative federalism by encouraging states and Union Territories to undertake reforms that strengthen the investment ecosystem.
The index assesses how effectively states and Union Territories create, facilitate and sustain an environment conducive to investment. All 28 states and eight Union Territories, including Jammu & Kashmir, were evaluated on parameters such as infrastructure, business climate, resource availability, government policy, regulatory ease, institutional framework, financial health and environmental resilience.
Based on their overall scores, the states and Union Territories were classified into four categories—Top Performers (above 50), Frontrunners (45–50), Emerging Performers (40–45) and Aspiring States (below 40).
Besides Odisha, Gujarat, Maharashtra, Tamil Nadu and Goa were placed in the Top Performers category. Fifteen states were classified as Frontrunners, while eight states and Union Territories each were placed under the Emerging Performers and Aspiring States categories.
To ensure fair comparisons, the assessment grouped the states and Union Territories into three peer categories—Large States, Hilly and North-Eastern States, and Union Territories and City States—considering differences in geography, economic size and administrative structure.
Among the Large States, Gujarat ranked first, followed by Maharashtra and Tamil Nadu. These three states also occupied the top positions in the overall index. Uttarakhand topped the Hilly and North-Eastern States category, ahead of Assam and Himachal Pradesh. Goa emerged as the best performer among the Union Territories and City States, followed by Jammu & Kashmir, Delhi and Chandigarh.
The report noted that while the Centre provides the overall policy direction through national reforms, state governments play the most critical role in shaping the investment climate by building infrastructure, simplifying regulations, strengthening institutions and ensuring policy stability.
According to NITI Aayog, the index aims to encourage states and Union Territories to adopt best practices, undertake continuous reforms and improve governance standards to attract greater investments. It is also expected to enhance India’s competitiveness and support the country’s long-term vision of Viksit Bharat @2047.
