Key Highlights
- India’s 36 states and union territories were scored on a 100‑point scale, with no jurisdiction exceeding 60 points, signalling widespread capacity for improvement.
- Gujarat tops the large‑state group with 56.6 points, followed by Maharashtra, Tamil Nadu and Odisha.
- Goa leads the city‑and‑union‑territory category at 53.1 points, while Delhi and Chandigarh also perform strongly.
- Eight thematic pillars – infrastructure, business climate, resources, government policy, regulatory ease, financial health, institutional environment and environmental resilience – form the metric.
- The möglichen index is designed as a diagnostic tool, not a competitive ranking, encouraging states to pursue targeted reforms.
Detailed Insights
The IFI aggregates 84 indicators across eight pillars that cover infrastructure, regulatory frameworks, resource availability and environmental safeguards. No state or union territory surpassed the 60‑point threshold, underscoring the need for deeper reforms. Gujarat’s edge derives from robust power supply, efficient ports and strong infrastructure, while Chennai’s high scores in business climate are driven by a favourable regulatory set‑up. Goa’s relative dominance in the city‑state segment reflects its advanced corporate ecosystem and ease of doing business.
Top performers are classified into “Frontrunners” (scores 45–50) and “Aspiring States” (scores < 40), with fifteen jurisdictions in the frontrunner bracket.
While the index preserves neutrality, it offers states actionable insight into which pillars require attention, enabling evidence‑based policy shifts that align with the Viksit Bharat vision.
Key Concepts
- Investment Friendliness Index (IFI): A benchmark framework that aggregates 84 indicators across eight pillars to evaluate a region’s readiness for new investment.
- Large State: A state whose population exceeds the national median, commonly used in comparative studies.
- City‑State / Union Territory: Urban centres with special administrative status, such as Goa, Delhi and Chandigarh.
- Frontrunner: Jurisdictions scoring 45–50, indicating moderate readiness but with significant room for improvement.
- Aspiring State: Jurisdictions scoring below 40, signifying many systemic challenges needing remediation.