Gujarat tops NITI Aayog Investment Index, outpaces Maharashtra and Tamil Nadu

Gandhinagar, July 18 (AHN) Gujarat has emerged as India's leading investment destination after securing the top position among 17 major states in NITI Aayog's first 'Investment Friendliness Index 2026', reflecting its performance across policy, infrastructure, governance and business facilitation.

The state scored 56.6 points in the inaugural index, ahead of Maharashtra at 53.7 and Tamil Nadu at 53.3.

The assessment examined 84 indicators grouped under eight pillars covering the entire investment lifecycle, including policy and governance, infrastructure, business facilitation and fiscal management.

According to the report, Gujarat's ranking reflects its efforts to provide a transparent and efficient business environment while maintaining strong economic fundamentals and industrial infrastructure.

One of the key factors highlighted in the index is the role of the Industrial Extension Bureau (iNDEXTb), which provides investors with end-to-end support through a single-window facilitation system.

The report states that the mechanism simplifies the process of establishing businesses by allowing faster approvals and offering a defined, time-bound framework for obtaining statutory clearances and No Objection Certificates (NOCs).

It also notes that restrictions on strikes in essential services have helped maintain industrial stability with minimal labour disruptions.

The report identifies Gujarat's industrial infrastructure as another major strength. It cites industrial hubs including Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha as examples of plug-and-play ecosystems that help industries to establish operations more quickly while reducing project implementation time and costs.

It also highlights the contribution of the Vibrant Gujarat Global Summit in attracting domestic and international investment commitments and strengthening the state's position as an investment destination.

On logistics, the report notes that Gujarat accounts for nearly 10 per cent of India's state highway network, almost four times the national average.

The state has the country's highest estimated expressway length at 635 kilometres, while nearly seven per cent of India's railway network passes through Gujarat.

According to the report, efficient logistics and lower turnaround times have improved supply chain competitiveness.

The index also points to Gujarat's competitive power sector. It states that industrial electricity tariffs in the state are nearly 29 per cent lower than the national average, while industries receive an average daily power supply of 23.8 hours, exceeding the average among major states.

The report says these factors help reduce operating costs and improve business productivity. Gujarat's economic indicators were also cited as supporting its investment climate.

The report states that the state contributes 31 per cent of India's merchandise exports and recorded the third-highest Gross State Domestic Product (GSDP) growth among states during the 2019-24 financial years.

According to the report, Gujarat's per capita GSDP stands at Rs 2,64,232, around 67 per cent higher than the average of major states.

It also highlights the state's strong micro, small and medium enterprise ecosystem, supported by a significant share of Micro and Small Enterprises, which it says provides a resilient base for industrial growth.

The report further notes Gujarat's fiscal position, stating that the state recorded a fiscal deficit of 2.81 per cent of GSDP in FY2024, the lowest among all states assessed.

Outstanding liabilities stood at around 18 per cent of GSDP, nearly 40 per cent below the average of major states, reflecting what the report describes as prudent fiscal management.

The index also recognises Gujarat's innovation ecosystem. As of FY2025, the state had established 614 Atal Tinkering Labs.

With 1.24 laboratories for every one lakh people, Gujarat performs nearly 19 per cent above the average of major states, according to the report, supporting innovation, entrepreneurship and emerging technologies.

The NITI Aayog report concludes that Gujarat's combination of policy stability, business facilitation, industrial infrastructure, logistics connectivity, competitive utilities, fiscal discipline and innovation capacity has contributed to its leading position in the inaugural Investment Friendliness Index 2026.