Gujarat Leads NITI Aayog's Investment Friendliness Index 2026

New Delhi, India Jul 19, 2026 ALN: Gujarat has emerged as the country’s leading investment destination after securing the top position among major States in NITI Aayog’s first-ever Investment Friendliness Index 2026, according to the report released by the Chief Minister’s Office on Saturday (July 18, 2026). This index is a significant development in India's economic landscape, as it provides a structured assessment of the investment climate across various states, which can influence both domestic and international investors in their decision-making processes.

The State scored 56.6 points, ahead of Maharashtra (53.7) and Tamil Nadu (53.3), in an assessment of 17 major States. The index evaluates States across 84 indicators under eight pillars covering the entire investment lifecycle, including policy and governance, infrastructure, facilitation, and fiscal management. The comprehensive nature of this assessment underscores the importance of a multifaceted approach to evaluating investment climates, beyond just economic indicators.

According to the report, Gujarat’s policy stability, investor-centric governance, and streamlined facilitation mechanisms have contributed to its top ranking. The Industrial Extension Bureau (iNDEXTb) was cited for providing end-to-end investor support through its single-window clearance system. This system allows investors to navigate the often complex regulatory environment more efficiently, thus reducing the time it takes to start a . The State’s time-bound framework for statutory approvals and No Objection Certificates (NOCs) has helped reduce project implementation delays, a critical factor for es looking to minimize downtime and maximize returns on investment.

The report also noted that restrictions on strikes in essential services have helped maintain industrial peace, resulting in negligible labour disruptions and providing a stable operating environment. This aspect of Gujarat's governance highlights the delicate balance that needs to be maintained between worker rights and the need for a conducive environment, a topic that often generates significant debate in economic policy circles.

Gujarat’s industrial infrastructure was identified as one of its key strengths. Industrial hubs including Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia, and Saykha were highlighted for offering plug-and-play facilities that enable industries to establish operations more quickly while reducing project costs and execution time. The development of such industrial corridors is not only pivotal for attracting investment but also plays a crucial role in job creation and economic diversification within the state.

The report also credited the Vibrant Gujarat Global Summit with attracting domestic and international investment commitments and strengthening the State’s position as a global investment destination. This summit has become a key platform for showcasing Gujarat’s investment potential and has been instrumental in fostering partnerships between the government and the private sector, thereby facilitating a conducive environment for growth.

In logistics and connectivity, the report said Gujarat accounts for nearly 10% of India’s State Highway network, almost four times the national average. “The State has the country’s highest estimated expressway length at 635 km, while nearly 7% of India’s railway network passes through Gujarat. Lower turnaround times and efficient logistics have further improved supply chain competitiveness,” it added. This robust infrastructure is crucial for es that rely on timely transportation of goods, thus enhancing the overall efficiency of operations.

The report identified the power sector as another competitive advantage. Industrial electricity tariffs in Gujarat are nearly 29% lower than the national average, while industries receive an average daily power supply of 23.8 hours, higher than the average among major States. “The combination of lower tariffs and reliable supply has helped reduce operating costs and improve productivity,” it said. Energy costs are a significant factor for manufacturers and service providers alike, and Gujarat’s favorable conditions in this regard are likely to attract further investment in energy-intensive industries.

Highlighting Gujarat’s economic performance, the report said the State contributes 31% of India’s merchandise exports and recorded the third-highest Gross State Domestic Product (GSDP) growth among States during the 2019-24 period. This economic dynamism is indicative of Gujarat's strategic positioning in key sectors such as textiles, chemicals, and engineering goods, which have been traditional strengths of the state’s economy.

Gujarat’s per capita GSDP stands at ₹2,64,232, nearly 67% higher than the average of major States. This figure reflects not only the wealth generated within the state but also indicates a higher standard of living for its residents, which can be an attractive factor for potential investors looking for a skilled and prosperous workforce. The report also pointed to the State’s strong micro, small and medium enterprises (MSME) ecosystem, supported by a healthy share of micro and small enterprises. The MSME sector is often seen as the backbone of the economy, driving innovation and providing employment opportunities.

The report further highlighted Gujarat’s fiscal management. In 2024-25, the State recorded a fiscal deficit of 2.81% of GSDP, the lowest among all States. Outstanding liabilities stood at around 18% of GSDP, nearly 40% lower than the average of major States. This prudent fiscal management is essential for maintaining investor confidence, as it reflects the State’s ability to manage its resources effectively while ensuring sustainable economic growth.

The report also recognised Gujarat’s innovation ecosystem, noting that the State had established 614 Atal Tinkering Labs (ATLs) by FY2025. With 1.24 ATLs per one lakh population, Gujarat performs nearly 19% above the average of major States, strengthening the ecosystem for innovation, entrepreneurship, and emerging technologies. These labs serve as platforms for young innovators to experiment with new ideas and technologies, fostering a culture of creativity and problem-solving that is vital for long-term economic competitiveness.

In conclusion, Gujarat’s position as the top state in the NITI Aayog’s Investment Friendliness Index 2026 reflects a combination of strategic planning, effective governance, and a commitment to creating a conducive environment for . As the state continues to build on its strengths and address any emerging challenges, it is likely to attract further investments that can drive economic growth and development in the years to come. The implications of this ranking extend beyond just economic metrics; they also influence policy discussions, investment strategies, and the overall perception of Gujarat as a progressive and -friendly state in the national and global arenas.