
India's first Investment Friendliness Index from NITI Aayog scores 36 states and UTs; none cross 60. Gujarat leads large states at 56.6. The index aims to guide state-level reforms to attract investment.
NITI Aayog released its first Investment Friendliness Index on Friday, scoring 36 states and Union Territories on 84 indicators across eight pillars. None of them reached 60 out of 100.
Five states cleared 50 to be classed as top performers: Goa, Gujarat, Maharashtra, Odisha and Tamil Nadu. Fifteen states fell into the frontrunner band between 45 and 50. Eight aspiring states finished below 40.
Among the 17 large states, Gujarat topped the table with a score of 56.6, about three points ahead of Maharashtra and Tamil Nadu. Odisha rounded out the top four at 52.4.
In the 12 hilly and northeastern states, Uttarakhand led with 47.5, narrowly ahead of Assam and Himachal Pradesh. Among the seven city states and Union Territories, Goa dominated with 53.1, comfortably ahead of Delhi and Chandigarh.
The index aggregates eight pillars: infrastructure, business climate, regulatory ease, government policy, resources, financial health, institutional environment and environmental resilience. Each pillar is scored separately and presented across three groups of states. No single state dominates every pillar; leadership shifts sharply depending on what is being measured.
Ashok Lahiri, vice chairman of NITI Aayog, said at the launch that the exercise is not a competition. "This is not a ranking exercise," he said, adding that it was meant to inform states where they are performing and where improvements are needed.
On infrastructure, out of a possible 25 points, Chandigarh's score of 15 was the highest anywhere in the index, ahead of Goa and Delhi at 14 each among city states. Among large states, Gujarat led at 13.7, powered by fast port turnaround times and reliable power supply, with Tamil Nadu close behind at 13.6. Himachal Pradesh topped the hilly and northeastern group at 11.2.
On business climate, out of 20, Delhi led all city states at 9.3, just shy of Maharashtra's large-state-topping 9.4. Maharashtra's score was built on the country's highest share of PE/VC investment and the largest network of Atal Tinkering Labs. Sikkim led the hilly and northeastern group at 7.8.
On resources, out of 15, Goa posted the index's best score at 8.3, powered by the highest share of GSDP spent on skilling and healthcare. Odisha led large states at 8.2, and Himachal Pradesh topped the hilly group at 7.2.
Government policy, scored out of 10, was led among city states by Puducherry at 4.8, among large states by Madhya Pradesh at 5.4, and among hilly and northeastern states by Assam at 4.9.
Regulatory ease, out of 12, saw Goa and Meghalaya share the honours nationally with matching scores of 8.5 in the city-state and hilly categories respectively. Chhattisgarh led large states at 8.4.
Lahiri noted that the central government can do a few things, "but much of what has to be done, has to be done by the states." He added that investment will play a critical role in building the momentum needed to achieve the Viksit Bharat vision.
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