Gujarat has achieved another major achievement in the field of investment and industrial development towards realizing Prime Minister Narendra Modi’s vision of Developed India 2047. In the country’s first Investment Friendliness Index 2026 released by NITI Aayog, Gujarat has secured the first position in the category of large states with the highest score of 56.6. In the evaluation of 17 major states, Gujarat has further strengthened its position as the most investment-friendly state of the country, leaving behind Maharashtra (53.7) and Tamil Nadu (53.3).
The industry-friendly policies, effective administrative system and pro-investment reforms of the state government under the leadership of Chief Minister Bhupendra Patel have received significant recognition through this national ranking. This index of NITI Aayog evaluates states on the basis of 84 indicators and 8 major pillars.
Single-window system, easy NOC and stable work environment
The report lists Gujarat’s policy stability and easy business environment for investors as among the major strengths of the state. The state’s iNDEXTb (Industrial Extension Bureau) provides end-to-end assistance to investors with single-window clearance, making the investment process fast, transparent and simple.
Additionally, there is a highly streamlined and transparent process for businesses to obtain NOC (No Objection Certificate) at a reasonable cost and time, promoting ‘Ease of Doing Business’.
The report also underlined that due to the government’s ban on strikes on essential services, the impact of ‘labor disruption’ in the state is negligible. This provides businesses with an extremely safe and stable labor environment.
Investment attraction increased through ‘Vibrant Gujarat’
According to the report, Gujarat’s strong industrial infrastructure is the main basis of investor confidence. Modern industrial clusters like Dholera SIR, GIFT City, Sanand, Dahej, Jhagariya and Saikha are providing world-class plug-and-play facilities to investors, making setup and operation of industries faster and convenient. On the strength of this strong ecosystem, the state’s biennial ‘Vibrant Gujarat Summit’ has been highly successful in attracting huge investment commitments from domestic and international investors.
Gujarat has also performed excellently in the field of logistics and connectivity. The state has about 10% of the country’s total state highway network, which is almost four times the national average. The largest estimated length of national expressways (635 kilometres) is in Gujarat, while 7% of the country’s total railway network is also located in the state. According to the report, shorter turnaround time and better logistics efficiency have made the supply chain more competitive.
Affordable electricity and uninterrupted supply
In the report, Gujarat’s power sector has also been described as an important factor in attracting investment. The cost of electricity for industrial consumers in the state is about 29% lower than the national average. At the same time, on an average, power supply is ensured for 23.8 hours per day, which is more than the average of big states. Competitive electricity rates and reliable supply have made the state more attractive for industries.
Strong financial discipline becomes the basis of investment
According to the report, Gujarat’s strong economic foundation is also a major reason for investor confidence. The state accounts for 31% of India’s total merchandise exports, while Gujarat’s GSDP growth rate stood third in the country during FY 2019-24. The state’s per capita GSDP is ₹2,64,232, which is 67% higher than the average of larger states.
Additionally, Gujarat has a very healthy proportion of Micro and Small Enterprises (MSEs) in its MSME base (in which it ranks fourth in the entire country), creating an extremely dynamic and resilient industrial ecosystem in the state.
Gujarat has also performed remarkably in terms of financial management. The state’s fiscal deficit in FY 2024 was only 2.81% of GSDP, which is the lowest among all the states. At the same time, the total liabilities of the state are about 18%, which is about 40% less than the average of big states. This strong financial discipline indicates long-term stability for investors.
Strengthened the industrial ecosystem
In the report, Gujarat’s innovation and startup ecosystem has also been considered an important basis for investment attraction. By FY 2025, 614 Atal Tinkering Labs (ATLs) have been established in the state. With 1.24 ATLs per lakh population, Gujarat is about 19% ahead of the average of large states, creating a strong base for innovation-based industries and future technologies.
Leave a Reply