Gujarat, Maharashtra, Tamil Nadu, Goa, and Odisha have been identified as the most investor-friendly states according to the Investment Friendliness Index (IFI) released by NITI Aayog. The IFI, introduced in the 2025-26 Union Budget, aims to enhance competitive and cooperative federalism by encouraging reforms and nurturing a favorable investment environment across states.
The index evaluates how effectively states and J&K establish, enable, and sustain an investment-friendly atmosphere. It examines various factors such as infrastructure, business climate, resources, government policies, regulatory ease, institutional environment, financial health, and environmental resilience to gauge investment attractiveness.
States and J&K have been categorized into “Top Performers,” “Frontrunners,” “Emerging Performers,” and “Aspiring States” based on their overall scores. Gujarat, Maharashtra, Tamil Nadu, Goa, and Odisha were recognized as “Top Performers,” while 15 others were classified as “Frontrunners.”
The report highlights the significance of state governments in shaping the investment climate through infrastructure development, regulatory frameworks, effective institutions, and consistent policy regimes. Strengthening these ecosystems is crucial for boosting India’s competitiveness, attracting more investments, and sustaining robust growth in the long run.
