Gujarat tops NITI Aayog's first Investment Friendliness Index 2026 among major States

📌 Summary:

• Gujarat has topped NITI Aayog's first-ever Investment Friendliness Index 2026 among major States, per the report released on Saturday, July 18, 2026

• Gujarat scored 56.6 points, ahead of Maharashtra (53.7) and Tamil Nadu (53.3)

• The assessment covered 17 major States

• The index evaluates States across 84 indicators grouped under 8 pillars spanning the entire investment lifecycle

• Pillars include policy and governance, infrastructure, business facilitation and fiscal management

• Significance: it institutionalises competitive federalism by ranking States on investment climate, creating peer pressure for regulatory reform

• It complements earlier exercises such as the Business Reform Action Plan (BRAP) and Ease of Doing Business rankings, but is broader as it covers the full investment lifecycle from entry to exit

🎯 UPSC Relevance: GS3 — Indian Economy: liberalisation, industrial policy, investment models and infrastructure; GS2 — competitive and cooperative federalism, role of NITI Aayog.

📝 Prelims Facts:

• NITI Aayog was established on 1 January 2015, replacing the Planning Commission; the Prime Minister is its Chairperson
• Investment Friendliness Index 2026 is NITI Aayog's first such index; 84 indicators, 8 pillars, 17 major States
• Top three: Gujarat 56.6, Maharashtra 53.7, Tamil Nadu 53.3
• Other NITI Aayog indices: SDG India Index, Composite Water Management Index, India Innovation Index, Fiscal Health Index

🔑 Key Term: Competitive Federalism — a governance model where States compete on policy performance and investment climate, with the Centre acting as facilitator and rating agency rather than controller.