New Delhi: Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha have emerged as the most investor‑friendly states as per the “Investment Friendliness Index (IFI)” released by NITI Aayog on Friday.
The IFI was announced in the 2025‑26 Union Budget to strengthen competitive and cooperative federalism by promoting reforms and fostering a conducive investment ecosystem across states.
The report assesses how effectively states and J&K create, enable and sustain an environment conducive to investments.
The IFI covered all 28 states and 8 J&K, evaluating investment attractiveness based on infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health and environmental resilience.
Based on overall scores, states and J&K have been classified into four categories: “Top Performers” (scores above 50), “Frontrunners” (45–50), “Emerging Performers” (40–45) and “Aspiring States” (below 40).
In the report, Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha were declared “Top Performers”, with 15 others as “Frontrunners”. Eight states/J&K each were placed in the remaining categories.
The evaluators recognised India’s diversity by dividing states and J&K into three peer groups – Large States, Hilly and North‑Eastern States, and Union Territories and City States – to account for differences in geography, economic scale and administrative context.
Gujarat secured the first rank among Large States, followed by Maharashtra and Tamil Nadu. These three also topped the overall index.
In the Hilly and North‑Eastern category, Uttarakhand led, followed by Assam and Himachal Pradesh. Goa ranked first among City States, followed by J&K, followed by Delhi and Chandigarh.
The report underscores that while national‑level reforms provide overarching policy direction, state governments play a pivotal role in shaping the investment climate through infrastructure, regulatory frameworks, effective institutions and predictable policy regimes.
Strengthening these ecosystems is essential for enhancing India’s competitiveness, attracting greater investment and sustaining high growth.
The IFI aims to foster competitive and cooperative federalism by encouraging states and J&K to adopt best practices and undertake continuous reforms in pursuit of the Viksit Bharat @2047 vision.
(IANS)
