NITI Aayog Ranks Gujarat Top in Investment Friendliness Index

NITI Aayog released the Investment Friendliness Index (IFI) on July 17 and 18, 2026, to benchmark investment ecosystems across 28 states and eight Union Territories. The index, first announced in the 2025-26 Union Budget following a 2024 directive from Prime Minister Narendra Modi, evaluates regions across eight pillars using 84 indicators and investor surveys.

Gujarat ranked first among large states, leading the overall index due to its infrastructure, business climate, and financial health. Gujarat's top position is supported by a high industry share of Gross Value Added at 50.5%, $7.3 billion in FDI inflows for FY24, and a low fiscal deficit of 2.81% of GSDP. Other top performers include Maharashtra, Tamil Nadu, Goa, and Odisha, with Goa ranking first among City States.

In the Hilly and North-Eastern category, Uttarakhand secured the top rank, placing 11th nationally within the Front Runner category. Chief Minister Pushkar Singh Dhami attributed this result to transparent governance and investor-friendly policies.

Vice Chairman Ashok Kumar Lahiri noted that India's current investment rate is approximately 25 per cent and argued for more investment to boost demand. The IFI aims to foster competitive federalism and support the Viksit Bharat @2047 vision by identifying policy gaps and encouraging the adoption of best practices, such as single-window clearance systems.