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19 July 2026

NITI Aayog Investment Friendliness Index 2026

This is a flagship report by NITI Aayog that directly evaluates state-level performance on critical economic and governance indicators, making it highly relevant for questions on industrial policy, investment climate, and cooperative federalism.

1 min read 2 questions 1 prelims

Notes

  • NITI Aayog launched the first Investment Friendliness Index in 2026.
  • The index evaluates 17 major Indian states across 84 indicators.
  • Assessment covers eight pillars including policy and governance, infrastructure, business facilitation, and fiscal management.
  • Gujarat ranked first with 56.6 points, followed by Maharashtra (53.7) and Tamil Nadu (53.3).
  • Key drivers for top-performing states include policy stability, investor-centric governance, and streamlined business facilitation.
  • The Industrial Extension Bureau (iNDEXTb) facilitates end-to-end investor support through a single-window clearance system.
  • Time-bound frameworks for statutory approvals and No Objection Certificates (NOCs) are critical for reducing project delays.
  • Industrial peace, supported by regulations on strikes in essential services, contributes to a stable operating environment.

Questions

  1. Discuss the role of state-level policy frameworks and single-window clearance systems in enhancing the ease of doing business in India. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The NITI Aayog Investment Friendliness Index highlights the importance of infrastructure and governance in attracting capital. Analyze the factors that contribute to competitive federalism among Indian states in the context of industrial development. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. The NITI Aayog Investment Friendliness Index 2026 evaluates states based on how many indicators?