Here's how Gujarat, Maharashtra, and Tamil Nadu fared in NITI Aayog's Investment Friendliness Index
NITI Aayog Vice Chairman Ashok Lahiri underlined importance of investment in boosting demand, states should use index as an indicator to assess performance
- Jul 17, 2026,
- Updated Jul 17, 2026 6:20 PM IST
Gujarat, Maharashtra, and Tamil Nadu have come out on top in a new study of states based on their investment climate by the NITI Aayog on Friday.
The Investment Friendliness Index gave the top position to Gujarat, followed by Maharashtra and then Tamil Nadu. Goa and Odisha made up the next two states in the top five list, followed by Delhi, Madhya Pradesh and Andhra Pradesh.
Gujarat topped the list with a score of 56.6 out of 100 based on its efficient port operations and competitive power sector that ensures reliable electricity and a favourable business climate. Maharashtra followed closely with a score of 53.7, excelling in attracting significant private equity/venture capital (PE/VC) investments, along with the highest number of Atal Tinkering Labs (ATLs), supported by strong economic indicators. Tamil Nadu, with a score of 53.3, ranked high in both infrastructure and business climate, driven by efficient port operations, a near 100% memorandum of understanding (MoU) conversion rate and impressive export performance, said the report. Ranking is based out of 100 points.
Releasing the report, NITI Aayog Vice Chairman Ashok Lahiri however, underlined that it should not be considered as a pure race or ranking of states but as an indicator to understand their performance and areas of improvement.
"This is not a ranking exercise. It is an exercise to tell states where they are doing well and where they are not doing so well," he said.
Emphasising on the need for investments to not only maintain but boost India's economic growth momentum, Lahiri pointed out that India's investment rate is currently less than 25% of GDP.
He also underlined that it is not only consumption but also investments that help to boost demand and overall economic growth.
The Investment Friendliness Index is based on seven parameters or pillars including infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environmental resilience.
States are also divided into three buckets of large state, hilly and Northeastern States, and Union Territories and City states for a more comparative ranking.
While Gujarat was the top performer in terms of infrastructure and financial health in large states, Maharashtra topped business climate and Odisha- resources. Madhya Pradesh ranked the highest in government policy and Chhattisgarh in institutional environment and regulatory ease. Tamil Nadu had the best environment resilience.
The Index was developed following the ninth Governing Council meeting of the NITI Aayog where Prime Minister Narendra Modi called for an investment friendly charter for states and was followed up by an announcement in the Union Budget 2025-26.
Gujarat, Maharashtra, and Tamil Nadu have come out on top in a new study of states based on their investment climate by the NITI Aayog on Friday.
The Investment Friendliness Index gave the top position to Gujarat, followed by Maharashtra and then Tamil Nadu. Goa and Odisha made up the next two states in the top five list, followed by Delhi, Madhya Pradesh and Andhra Pradesh.
Gujarat topped the list with a score of 56.6 out of 100 based on its efficient port operations and competitive power sector that ensures reliable electricity and a favourable business climate. Maharashtra followed closely with a score of 53.7, excelling in attracting significant private equity/venture capital (PE/VC) investments, along with the highest number of Atal Tinkering Labs (ATLs), supported by strong economic indicators. Tamil Nadu, with a score of 53.3, ranked high in both infrastructure and business climate, driven by efficient port operations, a near 100% memorandum of understanding (MoU) conversion rate and impressive export performance, said the report. Ranking is based out of 100 points.
Releasing the report, NITI Aayog Vice Chairman Ashok Lahiri however, underlined that it should not be considered as a pure race or ranking of states but as an indicator to understand their performance and areas of improvement.
"This is not a ranking exercise. It is an exercise to tell states where they are doing well and where they are not doing so well," he said.
Emphasising on the need for investments to not only maintain but boost India's economic growth momentum, Lahiri pointed out that India's investment rate is currently less than 25% of GDP.
He also underlined that it is not only consumption but also investments that help to boost demand and overall economic growth.
The Investment Friendliness Index is based on seven parameters or pillars including infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health, and environmental resilience.
States are also divided into three buckets of large state, hilly and Northeastern States, and Union Territories and City states for a more comparative ranking.
While Gujarat was the top performer in terms of infrastructure and financial health in large states, Maharashtra topped business climate and Odisha- resources. Madhya Pradesh ranked the highest in government policy and Chhattisgarh in institutional environment and regulatory ease. Tamil Nadu had the best environment resilience.
The Index was developed following the ninth Governing Council meeting of the NITI Aayog where Prime Minister Narendra Modi called for an investment friendly charter for states and was followed up by an announcement in the Union Budget 2025-26.