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A view of the GIFT City (Gujarat International Finance Tec-City) in Gandhinagar, Gujarat. File | Photo Credit: The Hindu

Gujarat has emerged as the country’s leading investment destination after securing the top position among major States in NITI Aayog’s first-ever Investment Friendliness Index 2026, according to the report released by the Chief Minister’s Office on Saturday (July 18, 2026).

The State scored 56.6 points, ahead of Maharashtra (53.7) and Tamil Nadu (53.3), in an assessment of 17 major States. The index evaluates States across 84 indicators under eight pillars covering the entire investment lifecycle, including policy and governance, infrastructure, business facilitation and fiscal management.

According to the report, Gujarat’s policy stability, investor-centric governance and streamlined business facilitation mechanisms have contributed to its top ranking. The Industrial Extension Bureau (iNDEXTb) was cited for providing end-to-end investor support through its single-window clearance system, while the State’s time-bound framework for statutory approvals and No Objection Certificates (NOCs) has helped reduce project implementation delays.

The report also noted that restrictions on strikes in essential services have helped maintain industrial peace, resulting in negligible labour disruptions and providing businesses with a stable operating environment.

Gujarat’s industrial infrastructure was identified as one of its key strengths. Industrial hubs including Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha were highlighted for offering plug-and-play facilities that enable industries to establish operations more quickly while reducing project costs and execution time.

The report also credited the Vibrant Gujarat Global Summit with attracting domestic and international investment commitments and strengthening the State’s position as a global investment destination.

The report identified the power sector as another competitive advantage. Industrial electricity tariffs in Gujarat are nearly 29% lower than the national average, while industries receive an average daily power supply of 23.8 hours, higher than the average among major States. “The combination of lower tariffs and reliable supply has helped reduce operating costs and improve productivity,” it said.

Highlighting Gujarat’s economic performance, the report said the State contributes 31% of India’s merchandise exports and recorded the third-highest Gross State Domestic Product (GSDP) growth among States during the 2019-24 period.

Gujarat’s per capita GSDP stands at ₹2,64,232, nearly 67% higher than the average of major States. The report also pointed to the State’s strong micro, small and medium enterprises (MSME) ecosystem, supported by a healthy share of micro and small enterprises.

The report further highlighted Gujarat’s fiscal management. In 2024-25, the State recorded a fiscal deficit of 2.81% of GSDP, the lowest among all States. Outstanding liabilities stood at around 18% of GSDP, nearly 40% lower than the average of major States.

The report also recognised Gujarat’s innovation ecosystem, noting that the State had established 614 Atal Tinkering Labs (ATLs) by FY2025. 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.

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