Gujarat tops NITI Aayog Investment Friendliness Index 2026

GANDHINAGAR: Gujarat has once again cemented its position as India’s most preferred investment destination by securing the top rank in NITI Aayog’s first-ever Investment Friendliness Index 2026. The state outperformed all major industrial states, including Maharashtra and Tamil Nadu, thanks to its investor-friendly policies, world-class infrastructure, reliable power supply and strong fiscal management.

Gujarat scored 56.6 points, emerging as the highest-ranked among 17 major states. Maharashtra followed with 53.7, while Tamil Nadu secured 53.3. The ranking reflects Gujarat’s sustained efforts to create a transparent, efficient and business-friendly environment under the leadership of Chief Minister Bhupendra Patel.

The Gujarat Investment Friendliness Index 2026 evaluates states across 84 indicators grouped under eight pillars, including governance, policy framework, infrastructure, business facilitation, logistics and fiscal management.

One of Gujarat’s biggest strengths is its investor-centric governance. The Industrial Extension Bureau (iNDEXTb) provides end-to-end support through a single-window clearance system, making business approvals faster and more transparent. The state also follows a time-bound process for issuing statutory approvals and No Objection Certificates (NOCs), reducing delays in project execution.

The report further highlights Gujarat’s stable industrial relations. Restrictions on strikes in essential services have ensured minimal labour disruptions, giving investors a predictable and secure business environment.

Gujarat’s industrial infrastructure also played a key role in securing the top position. Industrial hubs such as Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha offer plug-and-play facilities that allow industries to begin operations quickly while reducing project costs and timelines.

The report also praised the Vibrant Gujarat Global Summit, noting that it continues to attract major domestic and international investments, further strengthening the state’s global reputation.

Power availability emerged as another major advantage. Gujarat offers industrial electricity tariffs that are nearly 29% lower than the national average while providing an average daily power supply of 23.8 hours, helping industries reduce operating costs and improve productivity.

The state also continues to dominate India’s export landscape. Gujarat contributes 31% of the country’s merchandise exports and recorded the third-highest Gross State Domestic Product (GSDP) growth among states during FY 2019-24.

The report noted that Gujarat’s per capita GSDP stands at ₹2.64 lakh, nearly 67% higher than the average of major states. It also highlighted the state’s strong MSME ecosystem, which continues to support industrial growth and employment generation.

Gujarat’s fiscal discipline further boosted its ranking. In FY 2024, the state recorded a fiscal deficit of only 2.81% of GSDP, the lowest among all states, while its outstanding public liabilities remained around 18% of GSDP, nearly 40% lower than the average of major states.

The report also recognised Gujarat’s growing innovation ecosystem. With 614 Atal Tinkering Labs (ATLs) established by FY 2025, the state has 1.24 ATLs per one lakh population, nearly 19% above the average of major states, creating a strong pipeline for innovation, entrepreneurship and emerging technologies.