Report or index

Investment Friendliness Index (NITI Aayog)

GS3 Economy - Investment and federalismGS2 FederalismPrelims and Mains

In the news since 17 July 2026

Why in news
On 17 July 2026, NITI Aayog released its report "Investment Friendliness Index", which benchmarks how well States and UTs attract investment.
What it is
The Investment Friendliness Index (IFI) is a NITI Aayog framework to compare the investment climate of States and Union Territories. It follows the Union Budget 2025-26 announcement and a task given at the 9th Governing Council Meeting in July 2024. It aims to promote competitive and cooperative federalism through State-level reforms.
Coverage and pillars
It covers 28 States and 8 UTs across eight pillars, including infrastructure, regulatory ease and environmental resilience.
Indicators and data
The framework has 84 indicators, using secondary data and an investor perception survey.
Categories
Top Performers score above 50; Frontrunners 45-50; Emerging Performers 40 to below 45; Aspiring States below 40.
Top Performers
Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha are Top Performers.
Peer groups
Uttarakhand tops Hilly and North-Eastern States; Goa tops City States and UTs; Gujarat tops Large States.

Don’t confuse with IFI vs Ease of Doing Business: The World Bank's Ease of Doing Business ranking was global, and discontinued in 2021. IFI is a NITI Aayog index for States and UTs.

Don’t confuse with IFI vs State Business Reform Action Plan: BRAP ranking is run by DPIIT and assesses States on reform implementation; IFI is by NITI Aayog.

Reports and indices: 14 Prelims questions since 2013; they test who publishes a report and what it measures.

Test yourself

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 17 July 2026

    On 17 July 2026, NITI Aayog released its report "Investment Friendliness Index", which benchmarks how well States and UTs attract investment.