NITI Index Reveals Gujarat and Maharashtra as Top States for Attracting Investors
NEW DELHI: Gujarat, Maharashtra, Tamil Nadu, Goa, and Odisha have emerged as the top-performing states in the inaugural ‘Investment Friendliness Index’ released by NITI Aayog. The index, announced by Finance Minister Nirmala Sitharaman during the 2025-26 budget presentation, evaluated all 36 states and Union Territories (UTs) on a scale of 1 to 100. The leading states scored above 50, indicating a strong investment climate.
Uttarakhand topped the list among hilly and northeastern states with a score of 47.5, followed closely by Assam at 47.3 and Himachal Pradesh at 46.1. In the category of city states and UTs, Goa led with a score of 53.1, followed by Delhi at 49.9 and Chandigarh at 47.1.
The index assesses states and UTs based on eight pillars encompassing 90 indicators, including infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environmental resilience. Responses from 1,850 investors were also incorporated to gauge perceptions on these parameters. Gujarat’s score of 56.6 was driven by efficient port operations, a favorable business climate, and a competitive power sector. Maharashtra, with a score of 53.7, excelled in attracting significant private equity and venture capital investments, supported by strong economic indicators.
NITI Aayog Vice Chairperson Ashok Lahiri emphasized that investors make location-specific decisions based on factors such as infrastructure quality, regulatory certainty, and the availability of skilled human resources. He noted that the index should serve as a tool for understanding state performance and identifying areas for improvement. Lahiri remarked on the current geopolitical volatility, urging immediate action rather than delay.
The index categorized states into three groups: large states, hilly and northeastern states, and city states & UTs. States were further classified based on their scores into top-performing (above 50), frontrunners (45-50), emerging performers (40-45), and aspiring states (below 40). In June, Prime Minister Narendra Modi called for states to consider investor feedback and reduce compliance burdens to enhance India’s attractiveness as an investment destination.
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