Investment Friendliness Index: NITI Aayog’s State Ranking Plan
Why in the news
NITI Aayog was preparing a state ranking index that is likely to use four or more sub-indicators, two people aware of it said.
Key facts
| Dimension | Weight | Elements |
|---|---|---|
| Opportunity | 65% | Policies, infrastructure, innovation climate, land-talent-logistics |
| Risk | 35% | Natural, regulatory, financial and institutional |
- Perception inputs come from industry consultations on investor sentiment and compliance ease.
- Supports the National Manufacturing Mission.
Significance
- Guides investors to suitable states and promotes competitive cooperative federalism.
- Rewards top states and pushes laggards to improve.
Regional trends
- South (Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, Kerala): about 30% of GDP; strong in autos, electronics, mobiles.
- West (Maharashtra, Gujarat): leads in industrial infrastructure and FDI.
Exam angle
- Publisher: NITI Aayog; weights 65:35.