NITI Aayog released a report on "Investment Friendliness Index"

📌 Summary:

• NITI Aayog released the "Investment Friendliness Index (IFI)", a data-driven framework benchmarking how effectively States/UTs create and sustain an investment-conducive environment
• Origin: the 9th Governing Council Meeting (July 2024) tasked NITI Aayog with an Investment-Friendly Charter; Union Budget 2025-26 announced the Index to promote competitive and cooperative federalism
• IFI evaluates policy, institutional, regulatory and infrastructure parameters — industrial land availability, physical/digital infrastructure, regulatory efficiency, institutional capacity and policy predictability
• Rationale: while the Centre sets the macro policy framework, States shape the actual business environment; strengthening State ecosystems is key to attracting domestic/foreign investment
• Positioned as a catalyst for reform toward Viksit Bharat @2047 and "Viksit Rajya", encouraging States to adopt best practices

🎯 UPSC Relevance: GS3 — investment, growth and employment; GS2 — competitive and cooperative federalism and the role of States in economic reform.

📝 Prelims Facts:

• IFI announced in Union Budget 2025-26; mandated at NITI Aayog's 9th Governing Council Meeting (2024)
• Frames reform around "Viksit Bharat @2047" and "Viksit Rajya @2047"

🔑 Key Term: Competitive & Cooperative Federalism — States competing on reforms while cooperating with the Centre to improve the national investment climate.