Gujarat, Maharashtra, Tamil Nadu top Investment Friendliness Index for states
This story was originally published at 21:07 IST on 17 July 2026
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NEW DELHI – Gujarat emerged as the top performer across geographical categories in the maiden Investment Friendliness Index, with a score of 56.6 on the back of efficient port operations and competitive power sector, according to a report by the NITI Aayog. Among the top five states on the index, Gujarat was closely followed by Maharashtra with a score of 53.7, Tamil Nadu with 53.3, Goa with 53.1, and Odisha with 52.4, according to the report, released Friday.
Maharashtra showed strong economic indicators with significant private equity and venture capital investments, the NITI Aayog said in its 'Investment Friendliness Index' report. The state also has the highest number of Atal Tinkering Labs. Tamil Nadu, ranking high in infrastructure and business climate, was among the top states due to its near 100% memorandum of understanding conversion rate, efficient port operations, and export performance.
The index tracks the capability of Indian states to attract investments, as well as the challenges faced by investors. The index aims to encourage collaboration and informed decision-making by measuring states based on eight key areas: infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environment resilience, according to the report. The scores are computed out of 100.
The government had announced the launch of the index in the Budget for 2025-26 (Apr-Mar), and had asked the NITI Aayog to work on an 'Investment-friendly Charter' of parameters including policies, programmes, and processes needed for attracting investments. With this index, the government seeks to create a more transparent and resilient investment environment to help position India as a preferred global investment destination, NITI Aayog said in a press release.
The index, which covers all 28 states and eight Union territories, has classified them into four categories based on the scores as top performers, frontrunners, emerging performers, and aspiring states. Among the frontrunners, there are 15 states, including Delhi, Uttar Pradesh, and Andhra Pradesh. Jammu and Kashmir, West Bengal, and Bihar were among the eight states and Union Territories in the emerging performers' category, while an equal number is in the aspiring states' category, the report said.
States and Union Territories have also been assessed within three peer groups – large states, hilly and north-eastern states, and Union Territories and city states. Under the large states group, Gujarat, Maharashtra, and Tamil Nadu were the top performers. Uttarakhand, Assam, and Himachal Pradesh led in the hilly and northeastern states group. Goa, Delhi, and Chandigarh topped the city states and Union Territories group.
"By acting on the insights from this index, states can foster a healthier business environment, thereby attracting more capital," the report said. This could enable stronger economic growth across states, percolate capital and, thereby, development across regions, strengthen investment attractiveness, it added. End
Reported by Shweta
Edited by Avishek Dutta
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