During the 9th Governing Council Meeting of NITI Aayog held in July 2024, the PM tasked NITI Aayog with preparing an Investment-Friendly Charter comprising key policies, programmes, and processes required to attract investments.
The Union Budget 2025–26 announced the development of an Investment Friendliness Index to strengthen competitive and cooperative federalism by promoting reforms across States.

Purpose

Presents a structured, data-driven framework for assessing how effectively States/UTs create, enable, and sustain a conducive investment environment.
Evaluates key policy, institutional, regulatory, and infrastructure-related parameters influencing investment decisions.
Aim: foster competitive and cooperative federalism and support reforms toward Viksit Bharat @2047 (via “Viksit Rajya@2047”).

Coverage & Methodology

Detail	Value
States covered	All 28 states
UTs covered	8 Union Territories
Total indicators	84
Data type	Secondary data + perception-based measures from a primary investor survey

(Mnemonic tip: I-B-R-G-R-I-F-E)

Distribution: 15 States classified as Frontrunners, while eight States/UTs have been placed in each Emerging Performers and Aspiring States categories.

Gujarat, Maharashtra, Tamil Nadu, Goa, and Odisha have emerged as the Top Performers in the Investment Friendliness Index.

Peer-Group Rankings (accounts for differences in geography, economic scale, and administrative context):

Peer Group	Rank 1	Rank 2	Rank 3
Large States	Gujarat	Maharashtra	Tamil Nadu
Hilly & North-Eastern States	Uttarakhand	Assam	Himachal Pradesh
UTs & City States	Goa	Delhi	Chandigarh

Report presents detailed State Profiles benchmarking each State/UT against peers with comparable geographic/administrative traits.
Combines objective indicator scores with investor perception survey feedback for a balanced assessment.
Intended as practical tools for policymakers to identify targeted reform priorities, help States benchmark against peers, and help investors understand each jurisdiction’s climate.

Positions States as central to India’s investment story, since national reforms set direction but State Governments play a pivotal role in shaping the investment climate through infrastructure, regulatory frameworks, institutions, and predictable policy regimes.
Envisaged not just as a ranking exercise but as a strategic reform instrument guiding States to strengthen their investment ecosystems over time.