NITI Aayog released a report on “Investment Friendliness Index”

Key Highlights:

• NITI Aayog released the Investment Friendliness Index (IFI) report.
• The IFI assesses States and Union Territories on their investment climate across 8 pillars and 84 indicators.
• It was tasked by the Prime Minister in July 2024 and announced in the Union Budget 2025-26.
• Top Performers (overall) include Gujarat, Maharashtra, Tamil Nadu, Goa, and Odisha.
• The Index aims to foster competitive and cooperative federalism and attract investments for Viksit Bharat @2047.

Detailed Insights:

• The IFI provides a structured, data-driven framework for evaluating policy, institutional, regulatory, and infrastructure parameters.
• It underscores the pivotal role of State Governments in shaping the investment climate through robust infrastructure and efficient regulatory frameworks.
• The Index classifies States and UTs into four performance categories: Top Performers, Frontrunners, Emerging Performers, and Aspiring States.
• States are also assessed within three peer groups: Large States, Hilly and North-Eastern States, and Union Territories and City States for equitable comparison.
• The report includes detailed State Profiles, combining objective scores with investor perception surveys to identify reform priorities.
• The IFI serves as a strategic reform instrument to guide States in strengthening their investment ecosystems and enhancing India's global competitiveness.

Key Concepts Involved:

• Investment Friendliness Index (IFI): A framework by NITI Aayog to assess the investment climate across Indian States and UTs.
• NITI Aayog: A policy think tank of the Government of India, providing directional and policy inputs.
• Viksit Bharat @2047: India's vision to become a developed nation by 2047, the centenary of its independence.
• Competitive and Cooperative Federalism: A concept where states compete for development while also collaborating with the Centre and each other.