Gujarat has emerged as the country’s most investment-friendly major state, securing the top position in NITI Aayog’s inaugural Investment Friendliness Index 2026 with a score of 56.6, ahead of Maharashtra (53.7) and Tamil Nadu (53.3).
The ranking assessed 17 major states across 84 indicators grouped under eight pillars covering the entire investment lifecycle, including governance, policy framework, infrastructure, business facilitation, land availability, logistics and fiscal management.
According to the report, Gujarat’s consistent policy framework, investor-focused governance and efficient business approval system have played a key role in securing the top rank. The state’s Industrial Extension Bureau (iNDEXTb) was recognised for providing single-window facilitation, enabling investors to obtain statutory approvals and No Objection Certificates (NOCs) through a streamlined, time-bound process.
The report also highlighted Gujarat’s stable industrial relations, noting that restrictions on strikes in essential services have contributed to minimal labour disruptions and provided businesses with a predictable operating environment. Gujarat’s extensive industrial infrastructure was identified as another major strength. Industrial hubs including Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha offer plug-and-play facilities that enable industries to establish operations quickly while reducing project implementation time and costs.
The Index further acknowledged the role of the Vibrant Gujarat Global Summit in attracting domestic and foreign investments, helping strengthen the state’s reputation as a preferred investment destination.
The report also praised Gujarat’s transport and logistics network. The state accounts for nearly 10 per cent of India’s state highway network and has the country’s longest expressway network at an estimated 635 km. Nearly seven per cent of the national railway network passes through Gujarat, improving supply chain efficiency and reducing logistics costs for industries.
Reliable and affordable power supply was another factor contributing to Gujarat’s high ranking. Industrial electricity tariffs in the state are nearly 29 per cent lower than the national average, while industries receive an average of 23.8 hours of electricity supply daily, helping reduce operational costs and improve productivity.
The report also highlighted Gujarat’s strong economic performance. The state contributes nearly 31 per cent of India’s merchandise exports and recorded one of the highest Gross State Domestic Product (GSDP) growth rates between 2019 and 2024. Gujarat’s per capita GSDP stands at Rs 2,64,232, significantly higher than the average among major states. Fiscal discipline also emerged as one of Gujarat’s strengths. The state reported a fiscal deficit of 2.81 per cent of GSDP in FY 2024, the lowest among all states, while its outstanding liabilities remain substantially below the national average.
NITI Aayog also recognised Gujarat’s growing innovation ecosystem. As of FY 2025, the state has established 614 Atal Tinkering Labs, promoting innovation, entrepreneurship and emerging technologies among students and strengthening the long-term industrial ecosystem.