Gujarat, Maharashtra and Tamil Nadu top NITI Aayog’s Investment Friendliness Index

NITI Aayog released the Investment Friendliness Index 2026 on 17 July 2026 to rank Indian States and Union Territories on investment-related conditions. The index covered 28 States and eight Union Territories across eight pillars, including infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environmental resilience.

Overall national rankings

Gujarat secured the first position with an overall score of 56.6 out of 100. Maharashtra ranked second with a score of 53.7, and Tamil Nadu ranked third with a score of 53.3. Goa and Odisha were placed among the top performers in the overall rankings.

Index framework and coverage

The Investment Friendliness Index was developed after a task assigned by Prime Minister Narendra Modi during the 9th Governing Council Meeting of NITI Aayog in July 2024. The initiative was announced in the Union Budget 2025-26 and was designed to benchmark sub-national investment conditions across India. The index uses eight pillars to assess State and Union Territory performance. These pillars cover physical infrastructure, business climate, resource availability, policy environment, regulatory processes, institutional quality, financial indicators, and environmental resilience.

State-wise performance features

Maharashtra ranked second mainly because of its performance in the business climate pillar. Tamil Nadu ranked third due to strong scores in infrastructure and business climate. Gujarat ranked first in the national list with the highest overall score among all assessed States and Union Territories.

Important Facts for Exams

• NITI Aayog is the policy think tank of the Government of India and was established in 2015.
• The Investment Friendliness Index 2026 assessed 28 States and eight Union Territories.
• Gujarat, Maharashtra, and Tamil Nadu occupied the top three positions in the 2026 rankings.
• Lakshadweep, Ladakh, and the Andaman and Nicobar Islands were placed among the lowest-ranked performers.

Exam-relevant context

The phrase “Viksit Rajya @2047” refers to a long-term state-level development vision linked to the centenary year of India’s independence in 2047. Investment friendliness indices are used in public policy to compare regulatory, infrastructural, and institutional conditions across sub-national units.