Bhubaneswar: NITI Aayog’s Investment Friendliness Index 2026 has designated Odisha as a ‘Top Performer,’ placing it in esteemed company with Gujarat, Maharashtra, Tamil Nadu, and Goa.
This newly established index assessed all 28 states and eight Union Territories to foster healthy competition and promote cooperative federalism. States were categorized into four groups based on their overall scores: Top Performers, Frontrunners, Emerging Performers, and Aspiring States. While 15 states achieved Frontrunner status, Odisha’s position in the top tier reflects its dedication to reforms, enhancing ease of business, and governance focused on investors, as highlighted by the state’s Chief Secretary on X.
The framework for the Investment Friendliness Index (IFI) was launched following a directive from Prime Minister Narendra Modi during NITI Aayog’s 9th Governing Council Meeting and was formalized in the Union Budget for 2025-26. NITI Aayog conducted a thorough evaluation using 84 different indicators across eight key areas: infrastructure, business climate, resource availability, government policies, regulatory simplicity, institutional framework, financial stability, and environmental sustainability. The methodology integrated both objective secondary data and primary surveys of investor perceptions to provide a realistic view of the business environment.
To facilitate fair comparisons, states were divided into three peer categories based on geographic location, administrative structure, and economic size: Large States, Hilly and North-Eastern States, and Union Territories and City States. Within the Large States category, Gujarat, Maharashtra, and Tamil Nadu secured the top three rankings, while Odisha’s strong performance across the core pillars enabled it to rise into the overall Top Performer category.
The report from NITI Aayog stressed that although the central government sets the national policy framework, state governments play a crucial role in shaping the investment climate on the ground. By developing reliable physical and digital infrastructure, streamlining regulations, and ensuring policy consistency, Odisha has successfully reduced operational challenges for industries.
In addition to functioning as a benchmarking tool, the index serves as a valuable resource for future policy development, providing detailed profiles of each state that outline their strengths and areas needing reform. For Odisha, this recognition not only affirms its ongoing initiatives to improve the business environment but also solidifies its significance as a key player in advancing India’s long-term economic goals under the national vision of Viksit Bharat @2047.
