India’s race to attract investment has a new leader. Gujarat has topped the NITI Aayog Investment Friendliness Index 2026, emerging as the country’s best-performing state for its business and investment climate. Maharashtra and Tamil Nadu secured the second and third positions, showing that western and southern states continue to dominate when it comes to attracting businesses and private investment.
The index offers a snapshot of how states perform on factors that influence investment, including governance, infrastructure and the overall ease of doing business.
