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Gujarat top rank in NITI Aayog Investment Friendliness Index

Source:dst-news ↗

આ શા માટે મહત્વનું છે

NITI Aayog's state performance indices (like the Health Index, Innovation Index, and the newly launched Investment Friendliness Index) are highly relevant for GPSC and UPSC prelims. Gujarat's economic performance and its standing in investment and industrial production indicators are frequently asked in Gujarat PSC examinations.

સારાંશ

According to the first-ever Investment Friendliness Index 2026 released by NITI Aayog, Gujarat has topped the list of 17 major States in India with a score of 56.6. Maharashtra secured the second position with a score of 53.7, followed by Tamil Nadu in third place with a score of 53.3. The index measures and ranks the investment environment and policy attractiveness of various Indian states.

મુખ્ય મુદ્દા

  • NITI Aayog has released its first-ever Investment Friendliness Index in 2026.
  • The index assessed and ranked 17 major States of India on various investment-friendliness parameters.
  • Gujarat secured the top position among the major States with a score of 56.6, reinforcing its status as a premier investment destination.
  • Maharashtra ranked second with a score of 53.7, closely followed by Tamil Nadu in third place with a score of 53.3.

મહત્વપૂર્ણ શબ્દો

Investment Friendliness Index 2026

A NITI Aayog framework assessing Indian states and UTs across eight pillars—including infrastructure, regulatory ease, and business climate—to measure their readiness in attracting and sustaining domestic and foreign investments.

UPSC context

Highly relevant for GS Paper 2 and 3. Tests cooperative and competitive federalism, ease of doing business, and state-level governance reforms.

Source
NITI Aayog

India's premier public policy think tank, established in 2015 replacing the Planning Commission. It promotes cooperative and competitive federalism through a bottom-up approach, providing strategic direction, innovation support, and outcome monitoring.

UPSC context

Vital for GS Paper 2 (Governance and Federalism) and GS Paper 3 (Economic Planning). Tests knowledge of India's decentralized policy-making institutions.

Source

પ્રિલિમ્સ ટ્રેપ

The Investment Friendliness Index is a joint regulatory ranking released annually by the DPIIT and the World Bank.

Aspirants frequently confuse NITI Aayog's performance-based indices with DPIIT's regulatory Business Reforms Action Plan (BRAP) or think the World Bank ranks state-level investment friendliness directly.

સંલગ્ન સ્થિર ખ્યાલો

Polity and Governance / Indian Economy

What is Competitive Federalism and NITI Aayog's role?

  • Definition: A governance model where sub-national governments compete to attract capital and talent through policy improvements.
  • NITI's Role: Acts as an objective benchmark facilitator, using indices to drive reforms without relying on central financial leverage.
  • Key Examples: Export Preparedness Index, India Innovation Index, and the new Investment Friendliness Index.
Economy Investment Models

How are sub-national business reforms structured in India?

  • DPIIT BRAP: Ranks states based on the systemic implementation of specific regulatory reform points.
  • Jurisdiction Division: While the Union sets overall foreign investment limits, states command crucial factors like land acquisition, labor laws, and utility linkages.

આંતર-વિષય પેટર્ન

  • Competitive Federalism and Regional Divergence

    Investment indices reward naturally advantaged coastal states, potentially widening economic disparities between industrialized manufacturing hubs and landlocked states requiring fiscal hand-holding.

  • Paradiplomacy and sub-national FDI

    High rankings in NITI indices empower states to conduct independent paradiplomacy, directly pitching to global sovereign wealth funds and bypassing central bureaucratic channels.

Expect a 2026 question contrasting NITI's outcome-based IFI with DPIIT's process-based Business Reforms Action Plan (BRAP).

સંલગ્ન PYQ · 4

સંલગ્ન PYQ · 4

  • 2025GPSC_PRELIMSGS1

    Which of the following statements is/are correct regarding Foreign Direct Investment (FDI) in Gujarat? (A) Gujarat secured the first position in the country in terms of FDI equity inflows with 16.43% contribution in FDI during FY 2023-24. (B) USA, Mauritius, Singapore, UAE and Cayman Islands are among the top five countries attracting FDI Equity Inflow in Gujarat.

  • 2025GPSC_PRELIMSGS1

    Which of the following statements are correct regarding the economy of Gujarat according to the Socio-Economic Review, 2024-2025 of Gujarat? 1. Gujarat has consistently contributed over 8% to India's GST collections, highlighting its economic vitality and strength. 2. During the year 2022-23, Gujarat stood first in handling total cargo among the states of India. 3. According to the results of Annual Survey of Industries (ASI) 2022-23, Gujarat is first in the country in Industrial Production and Fixed Capital.

  • 2019GPSC_PRELIMSGS1

    Which of the following statements are correct, according to the 2ⁿᵈ Health Index (2017-18) published by NITI Aayog? 1. Uttar Pradesh ranks lowest in terms of overall health performance 2. For the Second time in row Kerala has become number one in overall Health Index 3. Gujarat stood at the fourth place in the Index 4. Punjab and Himachal Pradesh stood at 7th and 8th spots

  • 2025GPSC_PRELIMSGS1

    ______ is one of the cities chosen by the NITI Aayog for its Growth Hub (G-HUB) programme to boost their economic growth.