Source: PIB
Context
NITI Aayog released the Investment Friendliness Index (IFI) to assess and compare the investment ecosystem across States and Union Territories. The Index aims to promote competitive and cooperative federalism by encouraging reforms that attract domestic and foreign investments.
About Investment Friendliness Index (IFI)
What is it?
- A data-driven benchmarking framework developed by NITI Aayog.
- Measures how effectively States and UTs create a business-friendly environment for investment.
- Supports the vision of Viksit Bharat @2047 through Viksit Rajya @2047.
Background
- Proposed during the 9th Governing Council Meeting of NITI Aayog (July 2024).
- Announced in the Union Budget 2025–26.
Objectives
- Improve the investment climate across States and UTs.
- Encourage policy reforms and ease of doing business.
- Attract higher domestic and foreign investment.
- Promote competitive and cooperative federalism.
Coverage
- Covers 28 States and 8 Union Territories.
Eight Pillars of Assessment
- Infrastructure
- Business Climate
- Resources
- Government Policy
- Regulatory Ease
- Institutional Environment
- Financial Health
- Environmental Resilience
Performance Categories
- Top Performers: Score above 50
- Frontrunners: Score 45–50
- Emerging Performers: Score 40–45
- Aspiring States: Score below 40
Top Performers (Overall)
| Rank | State |
|---|---|
| 1 | Gujarat |
| 2 | Maharashtra |
| 3 | Tamil Nadu |
| 4 | Goa |
| 5 | Odisha |
Top States by Category
| Category | 1st | 2nd | 3rd |
|---|---|---|---|
| Large States | Gujarat | Maharashtra | Tamil Nadu |
| Hilly & North-Eastern States | Uttarakhand | Assam | Himachal Pradesh |
| Union Territories / City States | Goa | Delhi | Chandigarh |
