Gujarat tops NITI Aayog’s Investment Friendliness Index followed by Maharashtra, Tamil Nadu

Gujarat topped the NITI Aayog’s Investment Friendliness Index (IFI) followed Maharashtra and Tamil Nadu. NITI Aayog today launched the index to assess the potential of Indian states and Union Territories to attract investments.

The index evaluates all 28 states and eight Union Territories, on the basis of the factors that make a region attractive for investors and the challenges businesses face.

“Based on the overall assessment, Gujarat, Maharashtra, Tamil Nadu, Goa, and Odisha have emerged as the Top Performers in the Investment Friendliness Index. In addition, 15 States have been classified as Frontrunners, while eight States/UTs have been placed in each Emerging Performers and Aspiring States categories,” the government said in a release.

“In the hilly and north-eastern states category, Uttarakhand emerged as the highest-ranked State, followed by Assam and Himachal Pradesh. Among the city states and union territories, Goa secured the top position, followed by Delhi and Chandigarh,” as per the release on the index.

“The Index evaluates key policy, institutional, regulatory, and infrastructure-related parameters that influence investment decisions and provides a comparative assessment of the investment ecosystem across States and Union Territories,” the release said.

“The report underscores that while national-level reforms provide the overarching policy direction for economic growth, State Governments play a pivotal role in shaping the investment climate through robust infrastructure, efficient regulatory frameworks, effective institutions, and predictable policy regimes,” it added.  

According to the release, strengthening these state-level investment ecosystems is essential for enhancing India's competitiveness, attracting greater domestic and foreign investment, and sustaining high economic growth. “The Investment Friendliness Index seeks to foster competitive and cooperative federalism by encouraging States and Union Territories to adopt best practices and undertake continuous reforms in pursuit of the vision of Viksit Bharat @2047,” it added.

The government said the index envisaged not merely as a periodic assessment exercise, but as a strategic reform instrument that will guide States in strengthening their investment ecosystems over time. “Through sustained collaboration between the Centre, States, industry, and other stakeholders, the Index seeks to create a more transparent, predictable, and resilient investment environment that reinforces India's position as a preferred global investment destination and supports inclusive, sustainable, and long-term economic growth,” it added.