NITI Aayog ranks Gujarat, Maha, TN, Goa, Odisha as top performers
New Delhi, July 17
Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha have emerged as the most investor‑friendly states as per the "Investment Friendliness Index" released by NITI Aayog on Friday.
The IFI was announced in the 2025‑26 Union Budget to strengthen competitive and cooperative federalism by promoting reforms and fostering a conducive investment ecosystem across states.
The report assesses how effectively states and J&K create, enable and sustain an environment conducive to investments.
The IFI covered all 28 states and 8 J&K, evaluating investment attractiveness based on infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health and environmental resilience.
Based on overall scores, states and J&K have been classified into four categories: "Top Performers" (scores above 50), "Frontrunners" (45-50), "Emerging Performers" (40-45) and "Aspiring States" (below 40).
In the report, Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha were declared "Top Performers", with 15 others as "Frontrunners". Eight states/J&K each were placed in the remaining categories.
The evaluators recognised India's diversity by dividing states and J&K into three peer groups - Large States, Hilly and North‑Eastern States, and Union Territories and City States - to account for differences in geography, economic scale and administrative context.
Gujarat secured the first rank among Large States, followed by Maharashtra and Tamil Nadu. These three also topped the overall index.
In the Hilly and North‑Eastern category, Uttarakhand led, followed by Assam and Himachal Pradesh. Goa ranked first among City States, followed by J&K, followed by Delhi and Chandigarh.
The report underscores that while national‑level reforms provide overarching policy direction, state governments play a pivotal role in shaping the investment climate through infrastructure, regulatory frameworks, effective institutions and predictable policy regimes.
Strengthening these ecosystems is essential for enhancing India's competitiveness, attracting greater investment and sustaining high growth.
The IFI aims to foster competitive and cooperative federalism by encouraging states and J&K to adopt best practices and undertake continuous reforms in pursuit of the Viksit Bharat @2047 vision.
— IANS
Reader Comments
Tamil Nadu makes me proud! Chennai's industrial backbone is strong. But I wish the report also looked at ease of doing business for small businesses, not just big investors. A major hub in Coimbatore or Madurai could transform the region.
Interesting ranking. As someone who's worked in Mumbai and Bangalore, I can say Maharashtra has the right mix of ports, talent, and policy flexibility. But Odisha surprising everyone? That's a great sign for eastern India's potential. 💪
I appreciate the competitive federalism angle, but the criteria need to be more transparent. For example, Goa being a city-state and ranked #1 is fine, but how does J&K compare with Delhi—they have very different governance issues. Also, environmental resilience should get more weight.
Happy for Odisha—finally our state is getting recognition! The new industrial corridor in Paradip is a game changer. But I hope the government also invests in education and skilling so local youth can actually benefit from these investments.
As a foreign investor looking at India, this index is helpful. Gujarat and Maharashtra have excellent infrastructure, but I'd love to see more data on labor laws and dispute resolution—those matter a lot to us. Good first step though! 👏
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