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22 July, 2026
Investment Friendliness Index (IFI) 2026: NITI Aayog
Sat 18 Jul, 2026
Context:
- NITI Aayog has released the first-ever Investment Friendliness Index (IFI) 2026.
Key Highlights:
- Origin: The idea of the Index was conceived during the 9th Governing Council Meeting of NITI Aayog in July 2024, following the Prime Minister’s directive to prepare an "Investment-Friendly Charter."
- Announcement: It was formally announced in the Union Budget 2025–26 to promote state-level reforms.
- Main Objective: To strengthen Competitive and Cooperative Federalism among States by addressing policy gaps and improving the investment ecosystem.
- Vision 2047: The Index aims to increase private investment and Foreign Direct Investment (FDI) to achieve the vision of Viksit Bharat @2047.
What is the Investment Friendliness Index (IFI)? :
- IFI is a data-driven assessment framework that measures how effectively a State creates an investment-friendly environment.
- It evaluates the entire Investment Ecosystem, rather than focusing only on Ease of Doing Business.
Eight Key Pillars and Weightage :
- Infrastructure – 25% (Highest Weightage – Physical & Digital Connectivity)
- Business Climate – 20% (Ease of Investment & Business Ecosystem)
- Resources – 15% (Industrial Land, Human & Natural Resources)
- Regulatory Ease – 12% (Ease of Starting and Operating Businesses)
- Government Policy – 10% (Policy Stability & Investment Promotion)
- Financial Health – 7% (Fiscal Deficit & Budgetary Management)
- Institutional Environment – 6% (Transparency & Administrative Capacity)
- Environmental Resilience – 5% (Sustainable Development & Climate Adaptation)
Key Findings and Classification of States :
Based on the overall scores, States and Union Territories have been classified into four performance categories:
- Top Performers (Above 50 marks)
- Leading States (45–50 marks)
- Emerging Performers (≥40 – <45 marks)
- Aspirational States (Below 40 marks)
- Top Performing States (Overall): Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha
- 15 States have been classified as Leading States, while 8 States/UTs each have been placed under the Emerging Performers and Aspirational States categories.
Top States Across Different Categories :
Large States :
- Gujarat
- Maharashtra
- Tamil Nadu
Hilly & North-Eastern States :
- Uttarakhand
- Assam
- Himachal Pradesh
Union Territories & City States :
- Goa
- Delhi
- Chandigarh
Ranking of Large States :
| State | Overall Score (Out of 100) | GVA (Agriculture %) | GVA (Industry %) | GVA (Services %) | Combined Pillar Average |
| Gujarat | 56.6 | 8.5 | 29.6 | 60.6 | 56.8 |
| Maharashtra | 53.7 | 3.4 | 31.0 | 62.4 | 53.3 |
| Tamil Nadu | 53.3 | 12.5 | 41.3 | 61.1 | 51.1 |
| Odisha | 52.4 | 3.5 | 40.8 | 61.5 | 49.2 |
| Madhya Pradesh | 48.9 | 6.5 | 20.2 | 69.8 | 48.7 |
| Andhra Pradesh | 48.7 | 3.4 | 31.3 | 61.3 | 48.3 |
| Karnataka | 48.7 | 10.5 | 31.6 | 60.7 | 48.5 |
| Chhattisgarh | 47.5 | 5.6 | 26.2 | 60.6 | 47.5 |
| Telangana | 47.3 | 8.5 | 30.8 | 61.2 | 47.1 |
| Haryana | 46.6 | 1.1 | 19.4 | 53.1 | 45.6 |
| Uttar Pradesh | 45.0 | 8.6 | 15.7 | 53.5 | 44.7 |
| Punjab | 44.7 | 10.5 | 31.3 | 60.1 | 44.7 |
| West Bengal | 41.3 | 5.6 | 20.0 | 49.3 | 34.5 |
| Jharkhand | 41.3 | 6.4 | 20.9 | 48.1 | 34.3 |
| Bihar | 41.2 | 3.9 | 28.3 | 48.8 | 31.2 |
Why did Gujarat rank first? :
- Overall Score: 56.6
- Infrastructure: 65%
- Business Climate: 63%
- Government Policy: 61%
- Regulatory Framework: 68%
- Institutional Environment: 69%
- Environmental Health & Resilience: 74%
- Resources: 42% (Weakest Performing Area)
Important Facts for Examinations :
- Report: Investment Friendliness Index (IFI), 2026
- Released by: NITI Aayog
- Total Pillars: 8
- Total Indicators: 84
- Coverage: 28 States + 8 Union Territories
- Overall Top State: Gujarat
- Top Five States: Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha
- Top Hilly & North-Eastern State: Uttarakhand
- Top Union Territory/City State: Goa