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NITI Aayog Releases Investment Friendliness Index 2026 Ranking Gujarat, Maharashtra, and Tamil Nadu Top States

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On 17 July 2026, NITI Aayog published the Investment Friendliness Index 2026, ranking 28 Indian States and 8 Union Territories on investment-related conditions based on eight pillars including infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environmental resilience. Gujarat secured first place with a score of 56.6, followed by Maharashtra (53.7) and Tamil Nadu (53.3). Goa and Odisha were also among the top performers, while Lakshadweep, Ladakh, and Andaman & Nicobar Islands ranked among the lowest.

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Key Facts

  • The Investment Friendliness Index 2026 was released by NITI Aayog on 17 July 2026, assessing 28 Indian States and 8 Union Territories.
  • The index evaluates eight pillars: infrastructure, business climate, resource availability, government policy, regulatory ease, institutional environment, financial health, and environmental resilience.
  • Gujarat ranked first nationally with an overall score of 56.6 out of 100.
  • Maharashtra secured second place with a score of 53.7, bolstered by strong performance in the business climate pillar.
  • Tamil Nadu placed third with a score of 53.3, noted for robust infrastructure and business climate scores.
  • Other high performers included Goa and Odisha.
  • Lowest ranked performers were Lakshadweep, Ladakh, and the Andaman and Nicobar Islands.

Background & Context

The Investment Friendliness Index was developed following a task assigned by Prime Minister Narendra Modi during the 9th Governing Council Meeting of NITI Aayog in July 2024. Announced in the Union Budget 2025-26, the index benchmarks sub-national investment conditions across India. It aims to encourage states and union territories towards improving their investment environments aligned with India's long-term development vision 'Viksit Rajya @2047' — targeting developed states by India’s centenary of independence.

Why This Matters for Exams / Exam Relevance

The Investment Friendliness Index 2026 is a crucial current affairs topic for competitive exams focusing on economic development, governance, and policy in India. Understanding the ranking methodology, pillars of assessment, and top-performing states is vital. The role of NITI Aayog, the timeline from conceptualization to release, and the strategic importance of this index in India's economic planning are important points for exam answers.

Points to Remember

  • NITI Aayog, India's premier government policy think tank, was established in 2015.
  • The Investment Friendliness Index 2026 assessed 28 States and 8 Union Territories.
  • Top three states in the 2026 rankings were Gujarat (1st), Maharashtra (2nd), and Tamil Nadu (3rd).
  • The index encompasses eight comprehensive pillars, spanning from infrastructure to environmental resilience.
  • The release date of the index was 17 July 2026.
  • Lowest rankings were observed for Lakshadweep, Ladakh, and Andaman & Nicobar Islands.
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