A view of GIFT City (Gujarat International Finance Tec-City) in Gandhinagar, Gujarat. Archive | Photo credit: The Hindu
Gujarat has emerged as the country’s top investment destination after securing the top position among top states in NITI Aayog’s first 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 evaluation 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 political stability, investor-centric governance and streamlined business facilitation mechanisms have contributed to its top ranking. The Industrial Extension Bureau (iNDEXTb) was cited for providing comprehensive support to investors through its single-window clearance system, while the State’s determined time frame for statutory approvals and No Objection Certificates (NOCs) has helped reduce delays in project implementation.
The report also notes that restrictions on strikes in essential services have helped maintain industrial peace, resulting in negligible labor disruptions and providing companies with a stable operating environment.
Gujarat’s industrial infrastructure was identified as one of its key strengths. The industrial hubs including Dholera Special Investment Region (SIR), GIFT City, Sanand, Dahej, Jhagadia and Saykha stood out for offering plug-and-play facilities that enable industries to set up operations faster while reducing costs and project execution time.
The report also credits the Vibrant Gujarat Global Summit for attracting domestic and international investment commitments and strengthening the State’s position as a global investment destination.
In logistics and connectivity, the report says that Gujarat accounts for almost 10% of India’s state highway network, almost four times the national average. “The state has the highest estimated highway length in the country at 635 km, while nearly 7% of India’s railway network passes through Gujarat. “Lower turnaround times and efficient logistics have further improved the competitiveness of the supply chain,” he added.
The report identified the electricity sector as another competitive advantage. Industrial electricity rates in Gujarat are almost 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 rates and reliable supply has helped reduce operating costs and improve productivity,” he said.
Highlighting Gujarat’s economic performance, the report said the state contributes 31% of India’s merchandise exports and recorded the third highest growth in Gross State Domestic Product (GSDP) among states during the period 2019-24.
Gujarat’s GDPD per capita is Rs 2,64,232, almost 67% more than the average of major states. The report also highlighted the State’s strong micro, small and medium enterprises (MSME) ecosystem, supported by a healthy proportion 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 GDPD, the lowest among all states. Unpaid liabilities amounted to around 18% of GDPD, almost 40% less than the average of the main States.
The report also recognized Gujarat’s innovation ecosystem and noted that the state had set up 614 Atal Tinkering Labs (ATL) by fiscal 2025. With 1.24 ATL per lakh population, Gujarat performs nearly 19% above the average of major states, strengthening the ecosystem for innovation, entrepreneurship and emerging technologies.
Published – July 18, 2026 01:29 pm IST
