NEWS: NITI Aayog released the first-ever Investment Friendliness Index (IFI) 2026 to assess the investment attractiveness of Indian States and Union Territories.

About IFI 2026

• Released by: NITI Aayog.
• Objective: Assess the investment ecosystem of States/UTs, promote competitive federalism, and encourage policy reforms and ease of doing business.
• Coverage: All 28 States and 8 Union Territories.

Top Performers (2026)

• 1st: Gujarat
• 2nd: Maharashtra
• 3rd: Tamil Nadu

Assessment Framework

• Evaluates States/UTs on 8 pillars: Infrastructure, Business Climate, Resources, Government Policy, Regulatory Ease, Institutional Environment, Financial Health, Environmental Resilience
• Uses 84 indicators, combining: Secondary data (publicly available), Primary data (perception-based investor surveys)
• Scoring: 100-point scale.

Performance Categories

• Top Performers: Above 50
• Frontrunners: 45–50
• Emerging Performers: 40–<45
• Aspiring States: Below 40

Significance

• Helps improve Ease of Doing Business (EoDB).
• Attracts domestic and foreign investments (FDI).
• Encourages healthy competition among States.
• Supports industrial growth, employment generation, and balanced regional development.