SF Prep Notes

NITI Aayog releases Investment Friendliness Index; Gujarat ranks first among Large States

NITI Aayog released the Investment Friendliness Index (IFI) on 17 July 2026, naming Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha as Top Performers.

Summary

NITI Aayog released the Investment Friendliness Index (IFI) report on 17 July 2026, assessing how well all 28 States and 8 Union Territories create and sustain an investment-friendly environment across eight pillars and 84 indicators. Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha emerged as Top Performers (scores above 50), while 15 States were classified as Frontrunners. Gujarat ranked first among Large States, Uttarakhand topped the Hilly and North-Eastern States, and Goa topped the City States and Union Territories. The Investment Friendliness Index was announced in the Union Budget 2025–26, after the Prime Minister tasked NITI Aayog with an Investment-Friendly Charter at the 9th Governing Council Meeting in July 2024.

Key facts

Released
17 July 2026, NITI Aayog
Coverage
28 States and 8 UTs
Framework
8 pillars, 84 indicators
Top Performers
Gujarat, Maharashtra, Tamil Nadu, Goa, Odisha
Large States
1. Gujarat, 2. Maharashtra, 3. Tamil Nadu
Hilly & NE States
1. Uttarakhand, 2. Assam, 3. Himachal Pradesh
City States & UTs
1. Goa, 2. Delhi, 3. Chandigarh
Origin
Announced in Union Budget 2025–26

Practice MCQs 4 questions

Q1

Which State ranked first among Large States in NITI Aayog's Investment Friendliness Index released in July 2026?

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Correct answer: B — Gujarat

Gujarat ranked first among Large States, followed by Maharashtra and Tamil Nadu.

Q2 Advanced

Which State topped the Hilly and North-Eastern States category of the Investment Friendliness Index?

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Correct answer: C — Uttarakhand

Uttarakhand ranked highest among Hilly and North-Eastern States, followed by Assam and Himachal Pradesh.

Q3 Advanced

How many indicators does NITI Aayog's Investment Friendliness Index framework comprise?

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Correct answer: A — 84

The IFI framework has 84 indicators across eight pillars, including investor-perception measures.

Q4 Advanced

Consider the following statements about the Investment Friendliness Index (IFI): 1. The IFI covers all 28 States and 8 Union Territories. 2. Goa topped the City States and Union Territories category. 3. The development of the IFI was announced in the Union Budget 2025–26. Which of the statements given above are correct?

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Correct answer: D — 1, 2 and 3

All three statements are correct as per NITI Aayog's release.

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