Telangana ranks 10th in NITI Investment Friendliness Index

The state was placed in the 'frontrunner' category, with infrastructure, logistics and skill development identified as key areas for improvement.

Hyderabad: Telangana ranked 10th among states and Union Territories in NITI Aayog’s Investment Friendliness Index (IFI) 2026, placing it in the “frontrunner” category with an overall score of 47.3 among large states. Gujarat, Maharashtra and Tamil Nadu secured the top three positions.

According to the report, Telangana performed relatively well on institutional environment and business climate indicators, reflecting investor perception, governance measures and business facilitation. However, the index identified infrastructure, particularly logistics and connectivity, as well as resource availability and skill development, as areas where the state could improve.

The Investment Friendliness Index evaluates states and Union Territories on their ability to attract and sustain investments. It assesses performance across eight pillars — infrastructure, business climate, resources, government policy, regulatory ease, financial health, institutional environment and environmental resilience — using 84 indicators.

Gujarat tops the rankings

Gujarat topped the rankings with a score of 56.6, followed by Maharashtra (53.7) and Tamil Nadu (53.3). Goa and Odisha rounded out the top five. The report attributed Gujarat’s performance to its infrastructure, financial health, regulatory framework and policy measures. Maharashtra scored strongly on business climate and private equity inflows, while Tamil Nadu performed well in port efficiency, export performance and the conversion of investment memorandums of understanding (MoUs).

Releasing the report, NITI Aayog Vice-Chairman Ashok Kumar Lahiri said India’s investment rate is around 25 per cent and highlighted the importance of investment-led growth in achieving the country’s Viksit Bharat 2047 vision. The report also noted that productive investment plays a key role in manufacturing, employment generation, innovation and long-term economic growth.