Tamil Nadu MoU conversion rate near 100%, Niti Aayog index shows

Tamil Nadu has the second-highest number of Atal Tinkering Labs in the country, which also boosted its score.

The report flags several areas for improvement. Logistics infrastructure is a weak point: container freight station and inland container depot capacity is about 33% below the large-state average relative to manufacturing output. Congestion around Chennai Port is a specific problem, with trucks facing waiting times of up to 36 hours to enter and exit.

Chennai airport's international connectivity needs expansion, the report says. The city has relatively few direct flights to Europe despite hosting multiple European multinational companies.

Water availability for industrial use is a concern in parts of the state, particularly in landlocked and rain-shadow regions.

Tamil Nadu's financial health score was marginally below average. Interest payments amount to 3.4% of GSDP, and outstanding liabilities equal 31% of GSDP.

Gujarat topped the rankings on the strength of its efficient ports, reliable power sector, and favorable business climate. Maharashtra followed, driven by its ability to attract large private equity and venture capital investments and by having the highest number of Atal Tinkering Labs.