Gujarat tops NITI Aayog's first Investment Friendliness Index among major states
Gujarat has secured the top position among major states in NITI Aayog's inaugural Investment Friendliness Index 2026, according to a report released by the state's Chief Minister's Office on July 18, 2026. The index assesses 17 major states across 84 indicators under eight pillars covering the entire investment lifecycle, including policy and governance, infrastructure, business facilitation, and fiscal management.
Gujarat scored 56.6 points, ahead of Maharashtra (53.7) and Tamil Nadu (53.3). The report highlights Gujarat's policy stability, investor-centric governance, and streamlined business facilitation as key contributors to its top ranking. The state's single-window clearance system, operated by the Industrial Extension Bureau (iNDEXTb), provides end-to-end investor support. A time-bound framework for statutory approvals and No Objection Certificates (NOCs) has helped reduce project implementation delays.
The report notes that restrictions on strikes in essential services have helped maintain industrial peace, resulting in negligible labour disruptions. Gujarat's industrial infrastructure is identified as a key strength, with hubs such as Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia, and Saykha offering plug-and-play facilities that reduce project costs and execution time.
The Vibrant Gujarat Global Summit is credited with attracting domestic and international investment commitments and strengthening the state's position as a global investment destination. In logistics, Gujarat accounts for nearly 10% of India's state highway network—almost four times the national average—and has the country's highest estimated expressway length at 635 km. Nearly 7% of India's railway network passes through the state, and lower turnaround times have improved supply chain competitiveness.
The power sector is another competitive advantage: industrial electricity tariffs in Gujarat are nearly 29% lower than the national average, and 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 reduced operating costs and improved productivity.
Gujarat contributes 31% of India's merchandise exports and recorded the third-highest Gross State Domestic Product (GSDP) growth among states during 2019–24. Its per capita GSDP stands at ₹2,64,232, nearly 67% higher than the average of major states. The state also has a strong Micro, Small and Medium Enterprises (MSME) ecosystem, supported by a healthy share of micro and small enterprises.
In fiscal management, Gujarat recorded a fiscal deficit of 2.81% of GSDP in 2024–25, the lowest among all states, and outstanding liabilities of about 18% of GSDP—nearly 40% lower than the average of major states. The report also recognizes Gujarat's innovation ecosystem: by FY2025, the state established 614 Atal Tinkering Labs (ATLs), with 1.24 ATLs per one lakh population, performing nearly 19% above the average of major states.
