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Investment Friendliness Index: NITI Aayog State Ranking

18 July 20261 min read
REPORTS & INDEXESInvestmentFriendlinessIndex: NITI AayogState Ranking18 July 2026safalsetu.com

Why in the news

NITI Aayog released an index comparing how well States and UTs attract investment, to encourage competitive and cooperative federalism.

About the index

  • A data-driven benchmarking tool by NITI Aayog, tied to Viksit Bharat @2047 through Viksit Rajya @2047.
  • Origins: suggested at the 9th Governing Council Meeting (July 2024); announced in Union Budget 2025-26.
  • Coverage: 28 States and 8 Union Territories.
  • Pillars (eight): infrastructure, business climate, resources, government policy, regulatory ease, plus institutional setting, financial health and environmental resilience.

Score bands

BandScore
Top PerformersAbove 50
Frontrunners45 to 50
Emerging Performers40 to 45
Aspiring StatesBelow 40

Rankings

GroupFirst three
Overall (top five)Gujarat, Maharashtra, Tamil Nadu, then Goa and Odisha
Large StatesGujarat, Maharashtra, Tamil Nadu
Hilly and North-EasternUttarakhand, Assam, Himachal Pradesh
UTs / City StatesGoa, Delhi, Chandigarh

Exam angle

  • Publisher: NITI Aayog; pillars: eight; overall topper: Gujarat.
  • Hilly and North-Eastern leader: Uttarakhand.

Test yourself

1. Which State ranks first overall in NITI Aayog's Investment Friendliness Index?

Gujarat tops the overall list, ahead of Maharashtra and Tamil Nadu.

2. How many pillars does the Investment Friendliness Index use to assess States and UTs?

Eight pillars, from Infrastructure to Environmental Resilience, are assessed.

3. Which State leads the Hilly and North-Eastern States category in the Investment Friendliness Index?

Uttarakhand is first, followed by Assam and Himachal Pradesh.