Investment Friendliness Index (IFI) 2026
The NITI Aayog released its first Investment Friendliness Index (IFI) for 2026, evaluating state-level investment ecosystems through a framework of 84 indicators across eight pillars.
Key Findings
- Top Performers: Gujarat, Maharashtra, and Tamil Nadu emerged as the top performers among large states with scores of 56.6, 53.7, and 53.3 out of 100, respectively.
- Pillar Performance: No state excelled consistently across all eight pillars. Strengths in specific areas were often offset by weaknesses in others.
- FDI Concentration: Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Delhi attract nearly 85% of India's FDI, whereas Northeastern states receive less than 1%.
Significance of the Report
The report's timing coincides with India's economic goals of sustaining a 7.8% real GDP growth rate to achieve "high-income status" by 2047, emphasizing the centrality of investment.
Challenges & Progress
- Infrastructure Improvements: Progress in expanding highways, ports, airports, and digital infrastructure has been noted.
- Bottlenecks: Issues remain in land acquisition, environmental clearances, utility connections, and skilled labor availability.
Strategies for Improvement
- State-Level Decisions: State-level benchmarking and governance reforms are crucial to attract private investment and create employment.
- Central Government Role: Support for lagging states through technical assistance and capacity building is necessary.
- Institutional Responsiveness: Establishing digital clearance systems and grievance mechanisms improves investor confidence.
Improving governance, policy stability, and ease of doing business will enable a more balanced investment ecosystem, helping spread economic opportunities across India.
