Gujarat Tops NITI Aayog's First Investment Friendliness Index for States

NITI Aayog released its first-ever Investment Friendliness Index (IFI) on July 18, 2026, ranking Indian states on parameters gauging their attractiveness for investment. Gujarat emerged as the top-ranked state in this maiden edition, reflecting its infrastructure readiness, ease of doing business reforms and policy stability.

Historical Background

NITI Aayog has published several state-ranking indices in recent years, including the SDG India Index and School Education Quality Index, to promote competitive and cooperative federalism among states.

Previous Related Events

Earlier state investment attractiveness assessments were largely conducted by the Department for Promotion of Industry and Internal Trade (DPIIT) through the Ease of Doing Business (EoDB) rankings; the IFI is a distinct, broader NITI Aayog framework.

Why Important for TNPSC

NITI Aayog reports and state rankings are a recurring Reports/Indexes topic in TNPSC exams, testing both the index's parameters and top-ranked states.

Economic Relevance

Such indices influence investor perception and inter-state competition to attract capital, directly shaping industrial policy across states, including Tamil Nadu's own investment promotion strategy.

Key Highlights

• NITI Aayog's Investment Friendliness Index (IFI) launched July 18, 2026.
• Gujarat ranked number one among states.
• Aims to gauge states' investment climate holistically.

Important Facts

• NITI Aayog (National Institution for Transforming India) replaced the Planning Commission in 2015.
• NITI Aayog is headquartered in New Delhi; its ex-officio Chairman is the Prime Minister of India.

Important Years and Dates

• 2015 - NITI Aayog established.
• July 18, 2026 - First Investment Friendliness Index released.

Ministries Involved

NITI Aayog functions directly under the Prime Minister's Office.

Organisations and Headquarters

NITI Aayog, headquartered in New Delhi.

Reports / Indexes / Committees

Investment Friendliness Index (IFI) - new NITI Aayog index; other related indices include the SDG India Index and Multidimensional Poverty Index (also by NITI Aayog).

Related Static GK

NITI Aayog's Vice-Chairperson and CEO are key functionaries; the Governing Council includes all state Chief Ministers.

Important Terms and Definitions

Ease of Doing Business (EoDB): a distinct DPIIT ranking evaluating regulatory simplicity for businesses, separate from the newer Investment Friendliness Index.

Exam-Oriented Notes

Do not confuse DPIIT's Ease of Doing Business ranking with NITI Aayog's new Investment Friendliness Index - they are separate frameworks from separate bodies.

Memorization Points

• IFI released: July 18, 2026.
• Top state: Gujarat.
• Publishing body: NITI Aayog.

TNPSC-style MCQs

1. Which state topped NITI Aayog's first Investment Friendliness Index?

• A) Tamil Nadu
• B) Maharashtra
• C) Gujarat
• D) Karnataka

Answer: C) Gujarat

Explanation: Gujarat ranked first in NITI Aayog's maiden Investment Friendliness Index, released July 18, 2026.

2. NITI Aayog replaced which earlier body in 2015?

• A) Finance Commission
• B) Planning Commission
• C) National Development Council
• D) Election Commission

Answer: B) Planning Commission

Explanation: NITI Aayog was formed in 2015, replacing the Planning Commission established in 1950.

3. The Ease of Doing Business ranking of Indian states is compiled by which body?

• A) NITI Aayog
• B) DPIIT
• C) RBI
• D) SEBI

Answer: B) DPIIT

Explanation: The Department for Promotion of Industry and Internal Trade (DPIIT) compiles the Ease of Doing Business ranking, distinct from NITI Aayog's IFI.