Securing the top position in NITI Aayog’s first-ever Investment Friendliness Index 2026, Gujarat has emerged as India’s most investor-friendly state. The state scored 56.6 points among 17 major states to place it ahead of Maharashtra, (53.7) and Tamil Nadu (53.3).
The ranking evaluates states on 84 indicators across eight major areas, including policy structure, governance, infrastructure, business support, investment facilitation and financial management. From setting up a business to increasing operations, the assessment looks at the complete investment journey.
Gujarat’s performance has been driven by its investor facilitation systems, industrial infrastructure and policies aimed at making business approvals faster and simpler.
Single-window advantage
One of Gujarat’s biggest strengths highlighted in the index is its investor support mechanism through the Industrial Extension Bureau (iNDEXTb). The agency provides a single-window platform that helps companies access multiple services and approvals through one system.
The state has also developed a time-bound process for statutory approvals and No Objection Certificates (NOCs) to help investors move projects from planning stages to implementation faster.
The report also said the state’s stable labour environment. Restrictions on strikes in essential services have helped reduce disruptions for industries, creating a predictable environment for companies operating in the state.
Plug-and-play hubs attract investors
Gujarat’s industrial ecosystem has been another major factor behind its top ranking. Industrial zones such as Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha offer ready infrastructure for companies looking to begin operations.
These plug-and-play facilities reduce the time and cost involved in setting up manufacturing units and other businesses.
The state has also benefited from strong logistics infrastructure. Gujarat accounts for nearly 10% of India’s state highway network, almost four times the national average. It has the highest estimated expressway length among states at 635 kilometres, while nearly 7% of India’s railway network passes through the state.
The Vibrant Gujarat Global Summit has also played a role in attracting domestic and international investors by providing a platform for business partnerships and investment commitments.
Low-cost power advantage
The index cited Gujarat’s electricity infrastructure as a major advantage for industries. Industrial electricity tariffs in the state are nearly 29% lower than the national average. Industrial electricity tariffs are nearly 29% lower than the national average.
Industries in Gujarat get an average power supply of 23.8 hours a day. With electricity available for an average of 23.8 hours a day, factories spend less time dealing with power cuts. Lower power bills also help companies reduce their day-to-day costs.
Exports and economy back Gujarat’s ranking
The state’s overall economic performance has also worked in its favour. The state contributes 31% of India’s merchandise exports and recorded the third-highest GSDP growth among states between FY 2019 and FY 2024.
Its per capita GSDP stands at Rs 2.64 lakh, around 67% higher than the average of major states.
The report recognised Gujarat’s strong MSME network, which supports employment, manufacturing and entrepreneurship across the state.
Financial management has been another area where Gujarat scored well. Gujarat’s fiscal deficit stood at 2.81% of GSDP in FY 2024, the lowest among all states. Its outstanding liabilities stand at around 18% of GSDP, nearly 40% below the average of major states.
614 labs boost Gujarat’s innovation push
Gujarat’s innovation ecosystem also received recognition in the index. The state has established 614 Atal Tinkering Labs as of FY 2025 to provide students and young innovators access to technology and experimentation facilities. With 1.24 such labs per 1 lakh population, the state’s presence is around 19% above the average of major states.
The ranking comes at a time when states are competing to attract manufacturing, technology and infrastructure investments. Gujarat’s first-place position in the Investment Friendliness Index shows how industrial infrastructure, policy support, connectivity and financial management have strengthened its position as one of India’s leading investment destinations.
