Top Investor-Friendly States: Gujarat Leads Niti Aayog Index, Followed by Maharashtra and Tamil Nadu
Gujarat, Maharashtra, and Tamil Nadu have emerged as the top three states in NITI Aayog’s Investment Friendliness Index, according to a report released on Friday. Gujarat secured the highest score of 56.6, followed by Maharashtra at 53.7 and Tamil Nadu at 53.3. The index evaluates states and Union Territories (UTs) based on eight key pillars, including infrastructure, business climate, and regulatory ease.
Performance Overview
Gujarat’s leading position is attributed to its strong performance in infrastructure, business climate, financial health, and regulatory ease. The report notes that while Gujarat excels in these areas, it has room for improvement in resources, institutional environment, and environmental resilience. The state’s high infrastructure score is largely due to the efficiency of its ports and power sector, along with competitive electricity tariffs for industrial users.
Maharashtra ranked second overall, bolstered by its top performance in the business climate pillar. The state also showed strength in resources and financial health, although infrastructure and regulatory ease were identified as areas needing enhancement. Tamil Nadu, in third place, demonstrated strong results in infrastructure and business climate, but financial health was noted as an area for improvement.
Rankings by Category
Among large states, Bihar, Jharkhand, and West Bengal occupied the bottom three positions. Odisha, Madhya Pradesh, and Andhra Pradesh ranked fourth, fifth, and sixth, respectively. In the hilly and northeastern states category, Uttarakhand, Assam, and Himachal Pradesh led the rankings.
NITI Aayog Vice Chairman Ashok Kumar Lahiri emphasized the importance of increasing India’s investment rate, which currently stands at around 25%. He pointed out that this figure is lower than China’s during its rapid economic expansion. Lahiri stated that achieving the vision of Viksit Bharat @2047 will require a significant acceleration in investments to enhance productive capacity and foster innovation.
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