NITI Aayog Investment Friendliness Index 2026
Analysis based on 88 articles · First reported Jul 17, 2026 · Last updated Jul 31, 2026
The index is expected to influence investment decisions by providing an evidence-based comparison of state-level investment environments, potentially directing capital toward top-ranked states like India — Gujarat, India — Maharashtra, and India — Tamil Nadu. It may also encourage states to implement reforms to improve their rankings, thereby enhancing India's overall investment attractiveness and supporting economic growth.
India — NITI Aayog released its first Investment Friendliness Index (IFI) on July 17, 2026, ranking 28 states and 8 union territories across 84 indicators and eight pillars: infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environmental resilience. The index classifies states into Top Performers (score above 50), Frontrunners (45-50), Emerging Performers (40-45), and Aspiring States (below 40). India — Gujarat topped the large states category with a score of 56.6, followed by India — Maharashtra and India — Tamil Nadu. India — Goa led city states, and India — Uttarakhand topped hilly and northeastern states. Five states - India — Gujarat, India — Maharashtra, India — Tamil Nadu, India — Goa, and India — Odisha - were declared Top Performers. The index aims to foster competitive federalism and guide state-level reforms to improve investment climates. India — NITI Aayog Vice Chairman Ashok Lahiri noted India's investment rate is around 25%, lower than China's at a comparable stage, and emphasized the role of states in driving reforms. The report was prepared by S&P Global — CRISIL Ratings under India — NITI Aayog's Research Scheme. State leaders, including Chief Ministers Bhupendrabhai Patel, Mohan Charan Majhi, Himanta Biswa Sarma, Vishnu Deo Sai, and Sukhvinder Singh Sukhu, welcomed their states' rankings and highlighted ongoing reform efforts.
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