NITI Aayog Investment Friendliness Index 2026: Gujarat Ranks First, Followed by Maharashtra and Tamil Nadu

August 2, 2026

Gujarat has secured the highest rank in the NITI Aayog Investment Friendliness Index 2026, emerging as the best-performing state in India for its business and investment climate. Maharashtra and Tamil Nadu placed second and third respectively, demonstrating that western and southern states continue to dominate in attracting private investment and enterprise.

What Happened

The NITI Aayog Investment Friendliness Index 2026 evaluated states and Union Territories across India on key factors that influence their business environment. Gujarat topped the rankings with a score of 56.6. Maharashtra followed with a score of 53.7, while Tamil Nadu scored 53.3 to secure third position.

The evaluation measures performance across governance, infrastructure, policy support, and general ease of doing business. Other strong performers included Goa with a score of 53.1 and Odisha with 52.4. Among Union Territories and other states, Delhi recorded 49.9, Madhya Pradesh scored 48.9, and both Karnataka and Andhra Pradesh registered 48.7.

Key Highlights

Top Performers: Gujarat led the index with 56.6, followed by Maharashtra (53.7), Tamil Nadu (53.3), Goa (53.1), and Odisha (52.4).
Mid-Range Performers: Delhi (49.9), Madhya Pradesh (48.9), Karnataka (48.7), Andhra Pradesh (48.7), Rajasthan (48.1), Uttarakhand (47.5), Chhattisgarh (47.5), Assam (47.3), Telangana (47.3), Haryana (47.1), Chandigarh (47.0), Kerala (46.6), Himachal Pradesh (46.1), Uttar Pradesh (45.0), Tripura (45.0), Puducherry (44.9), and Punjab (44.7).
Emerging & Lower Scores: West Bengal (41.3), Jharkhand (41.3), Sikkim (41.2), Nagaland (41.2), Ladakh (40.2), Mizoram (39.9), Arunachal Pradesh (37.5), Dadra & Nagar Haveli and Daman & Diu (37.1), Bihar (36.6), Manipur (32.3), Andaman & Nicobar Islands (30.2), Jammu & Kashmir (27.0), and Lakshadweep (24.5).
Four Main Categories: Regions are grouped into top performers, frontrunners, emerging performers, and aspiring states to reflect their investment readiness.

Why This Matters

The index provides a benchmark for states to assess their readiness in attracting businesses and new projects. A higher ranking can increase a state’s appeal to investors seeking locations for factories, startups, manufacturing units, and logistics hubs. For state governments, the results highlight operational strengths and identify specific areas needing improvement as India pushes for faster economic growth and expanded private investment.

What to Watch Next

State governments can utilize these scores to address identified gaps in governance, policy support, and infrastructure. Future evaluations will indicate how effectively lower-ranking and mid-range regions improve their business environments to compete for domestic and global capital.

Frequently Asked Questions

Which state topped the NITI Aayog Investment Friendliness Index 2026?

Gujarat topped the index with a score of 56.6, making it the highest-performing state for business and investment climate.

Which states ranked second and third?

Maharashtra ranked second with a score of 53.7, and Tamil Nadu ranked third with a score of 53.3.

What factors does the index evaluate?

The index measures state performance based on governance, infrastructure, policy support, and the overall ease of doing business.

Source: Based on reporting from India Today.