Gujarat ranked India's most investment-friendly state by NITI Aayog

Gujarat has been ranked first among major Indian states in NITI Aayog's inaugural Investment Friendliness Index 2026. With a top score of 56.6, the state is lauded for its policy stability, single-window facilitation, and robust infrastructure.

Gujarat has secured the top position among India's major States in NITI Aayog's first-ever Investment Friendliness Index 2026, reaffirming its standing as the country's leading investment destination.

According to the release, the State achieved the highest score of 56.6, ahead of Maharashtra (53.7) and Tamil Nadu (53.3), in an assessment of 17 major States. The ranking reflects Gujarat's sustained commitment to creating a transparent, efficient and investor-friendly business environment under the leadership of Gujarat Chief Minister Bhupendra Patel. The Investment Friendliness Index evaluates States across 84 indicators under eight key pillars, covering every stage of the investment lifecycle from policy and governance to infrastructure, business facilitation and fiscal management, as stated in the release.

Single-Window Facilitation and Stable Labour Environment

The Index identifies Gujarat's policy stability and investor-centric governance as among the State's biggest strengths. The Industrial Extension Bureau (iNDEXTb) provides investors with end-to-end facilitation through its single-window system, making the process of setting up businesses faster, simpler and more transparent. The State also offers a well-defined and time-bound framework for securing statutory approvals and No Objection Certificates (NOCs), enabling projects to move from proposal to implementation with minimal delays. The report further notes that restrictions on strikes in essential services have helped maintain industrial peace, resulting in negligible labour disruptions and providing businesses with a stable and predictable operating environment.

World-Class Industrial Infrastructure

According to the Index, Gujarat's world-class industrial infrastructure continues to be one of the State's strongest competitive advantages. Industrial hubs such as Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha offer world-class plug-and-play facilities, allowing industries to establish operations quickly and efficiently. This integrated industrial ecosystem has significantly improved project execution timelines while reducing the time and cost involved in setting up new businesses.

The report also highlights the role of the Vibrant Gujarat Global Summit, which has consistently attracted large domestic and international investment commitments and strengthened Gujarat's position as a global investment destination.

Excellence in Logistics and Connectivity

Gujarat has also performed exceptionally well in logistics and connectivity. The State accounts for nearly 10% of India's State highway network, almost four times the national average. It has the country's highest estimated expressway length at 635 kilometres, while nearly 7% of India's railway network passes through the State. Lower turnaround times and efficient logistics have further enhanced supply chain competitiveness.

Competitive and Reliable Power Sector

The Index recognises Gujarat's power sector as another major strength supporting industrial growth. Industrial consumers in Gujarat benefit from electricity tariffs that are nearly 29% lower than the national average. The State also provides an average of 23.8 hours of power supply every day, exceeding the average among major States. Competitive electricity tariffs, coupled with reliable power availability, have helped industries lower operating costs while improving productivity and business efficiency.

Robust Economic Fundamentals and Fiscal Prudence

The report highlights Gujarat's strong economic fundamentals as a key factor behind sustained investor confidence. The State contributes 31% of India's total merchandise exports and recorded the third-highest GSDP growth among States during FY 2019-24. Gujarat's per capita GSDP stands at ₹2,64,232, nearly 67% higher than the average of major States. The report also notes that Gujarat has one of the country's strongest MSME ecosystems, supported by a healthy share of Micro and Small Enterprises (MSEs), providing a resilient foundation for industrial growth.

The State's fiscal discipline further strengthens its investment credentials. In FY 2024, Gujarat recorded a fiscal deficit of just 2.81% of GSDP, the lowest among all States. Outstanding liabilities stand at around 18% of GSDP, nearly 40% lower than the average of major States, reflecting prudent financial management and long-term economic stability.

Fostering an Innovation Ecosystem

The Index also acknowledges Gujarat's growing innovation ecosystem as an important driver of future industrial growth. As of FY 2025, the State has established 614 Atal Tinkering Labs (ATLs). With 1.24 ATLs per one lakh population, Gujarat performs nearly 19% above the average of major States, strengthening the ecosystem for innovation, entrepreneurship and emerging technologies. (ANI)

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