Gandhinagar: Gujarat has achieved a major milestone in investment and industrial development by securing the top position in NITI Aayog’s first-ever ‘Investment Friendliness Index 2026’ among major states.
The state scored 56.6 points, ranking first among 17 evaluated states, ahead of Maharashtra with 53.7 points and Tamil Nadu with 53.3 points.
The recognition highlights Gujarat’s strong investment ecosystem, industry-friendly policies, administrative efficiency, and reforms aimed at improving the ease of doing business.
The achievement aligns with Prime Minister Narendra Modi’s vision of ‘Viksit Bharat 2047’, with Gujarat continuing to position itself as a leading destination for domestic and global investors.
NITI Aayog Index Evaluates States on 84 Indicators
NITI Aayog’s Investment Friendliness Index 2026 assessed states based on 84 indicators across eight major pillars.
Gujarat’s top ranking reflects its performance in areas including:
- Business-friendly policies
- Infrastructure development
- Industrial ecosystem
- Investment facilitation
- Labour stability
- Logistics efficiency
- Power availability
- Innovation and startup growth
The ranking provides national recognition to Gujarat’s long-term strategy of creating a favourable environment for industries and investors.
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Single-Window Clearance and Stable Business Environment Boost Investor Confidence
One of Gujarat’s key strengths highlighted in the report is its transparent and efficient investment facilitation system.
The state’s Industrial Extension Bureau (iNDEXTb) provides investors with single-window clearance and end-to-end support, making the investment process faster and more convenient.
The state has also developed a streamlined system for obtaining:
- No Objection Certificates (NOCs)
- Business approvals
- Regulatory clearances
This has helped improve transparency and strengthen investor confidence.
The report also noted Gujarat’s stable labour environment, with minimal disruption to industrial operations due to effective labour management practices.
Plug-and-Play Industrial Ecosystem Strengthens Gujarat’s Appeal
Gujarat’s advanced industrial infrastructure has emerged as a major factor behind its investment success.
Modern industrial clusters and development zones such as:
- Dholera Special Investment Region (SIR)
- GIFT City
- Sanand
- Dahej
- Jhagadia
- Saykha
provide investors with world-class plug-and-play facilities for faster business establishment and operations.
The state’s flagship Vibrant Gujarat Summit has also played an important role in attracting investment commitments from national and international companies.
Strong Logistics Network Gives Gujarat Competitive Advantage
Gujarat has recorded strong performance in logistics and connectivity infrastructure.
According to the report:
- Gujarat accounts for nearly 10% of India’s total state highway network, around four times the national average.
- The state has the highest estimated national expressway length at around 635 km.
- Around 7% of India’s railway network is located in Gujarat.
Better connectivity and lower turnaround time have helped businesses improve supply chain efficiency and competitiveness.
Affordable Power and Reliable Supply Support Industrial Growth
The state’s power infrastructure has been identified as another major investment advantage.
Key highlights include:
- Industrial electricity costs around 29% lower than the national average.
- Average electricity availability of 23.8 hours per day.
Competitive electricity rates and reliable supply have helped industries reduce operational costs and improve productivity.
Gujarat’s Economic Strength Drives Investor Confidence
The report highlighted Gujarat’s strong economic fundamentals as a key reason behind investor trust.
Major economic indicators include:
- 31% share in India’s total merchandise exports.
- Gujarat ranked among the top states in GSDP growth during FY 2019-24.
- Per capita GSDP of ₹2,64,232, around 67% higher than the average of major states.
The state also has a strong MSME ecosystem, with a healthy presence of micro and small enterprises, making it one of India’s most dynamic industrial hubs.
Strong Financial Management and Innovation Ecosystem Boost Growth
Gujarat has also performed well in fiscal management, providing investors with long-term economic stability.
According to the report:
- The state’s fiscal deficit was only 2.81% of GSDP in FY 2024, among the lowest across states.
- Total liabilities stood at around 18%, significantly lower than the average of major states.
The state’s innovation ecosystem has also expanded rapidly.
By FY 2025:
- Gujarat had established 614 Atal Tinkering Labs (ATLs).
- The state has 1.24 ATLs per one lakh population, around 19% higher than the average of major states.
This growth supports innovation-driven industries, startups, and future technologies.
Gujarat Strengthens Position as India’s Leading Investment Destination
The top ranking in NITI Aayog’s Investment Friendliness Index 2026 reinforces Gujarat’s position as one of India’s most attractive investment destinations.
With strong infrastructure, policy stability, skilled workforce support, affordable energy, and a growing innovation ecosystem, the state continues to play a key role in India’s industrial growth journey and the vision of a developed India by 2047.
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