Gujarat Tops NITI Aayog’s First Investment Friendliness Index

NITI Aayog has released the country’s first Investment Friendliness Index, assessing 36 states and Union Territories across 84 indicators covering eight key areas. However, no state managed to score above 60 out of 100 in the assessment.

The index classified five states — Goa, Gujarat, Maharashtra, Odisha and Tamil Nadu — as “top performers” after they scored above 50.

Fifteen states were placed in the “frontrunner” category with scores between 45 and 50, while eight states were categorised as “aspiring states” after scoring below 40.

Among the 17 large states evaluated, Gujarat secured the highest position with a score of 56.6. It was followed by Maharashtra and Tamil Nadu, both scoring around three points lower, while Odisha ranked fourth with 52.4 points.

In the category covering 12 hilly and northeastern states, Uttarakhand emerged as the leader with 47.5 points, followed by Assam and Himachal Pradesh. Among seven city states and Union Territories, Goa topped the list with a score of 53.1, ahead of Delhi and Chandigarh.

The index measured states on eight pillars — infrastructure, business climate, resources, government policies, regulatory ease, financial health, institutional environment and environmental resilience.

NITI Aayog clarified that the index is not intended as a ranking competition but as a tool to help states identify strengths and areas requiring improvement.

Infrastructure was one of the major parameters, with Chandigarh recording the highest score among city states. Gujarat led large states in this category with 13.7 points due to factors such as efficient ports and reliable electricity supply, while Tamil Nadu followed closely.

For business climate, Maharashtra emerged as the leader among large states, supported by its strong private equity and venture capital ecosystem and extensive innovation infrastructure. Delhi topped the city-state category, while Sikkim led among northeastern and hilly states.

In the resources pillar, Goa recorded the highest overall score, supported by strong spending on skill development and healthcare. Odisha topped the large states category, while Himachal Pradesh led the hilly states.

Government policy scores were led by Madhya Pradesh among large states, Assam among northeastern states and Puducherry among city states. In regulatory ease, Goa, Meghalaya and Chhattisgarh emerged as leading performers in their respective categories.

The index aims to provide policymakers with insights into investment readiness and encourage states to improve their business ecosystems, infrastructure and governance systems.