BS EDIT: States hold the key to India's investment future

By Business StandardPublished On Jul 23, 2026

A New Benchmark

The Investment Friendliness Index measures states across 84 indicators, offering a clear picture of their investment readiness

Leaders, Yet Gaps Remain

Gujarat, Maharashtra and Tamil Nadu lead the rankings, but no state performs strongly across every pillar

Investment Divide

Five regions attract nearly 85% of FDI, while the Northeast gets less than 1%, highlighting sharp regional disparities

Growth Needs Capital

India’s 2047 growth ambitions depend on stronger investment ecosystems and higher private capital at the state level

Institutions Matter

Beyond infrastructure, quicker approvals, skilled labour and efficient governance are key to attracting investment

Competing on Reforms

Better governance, policy stability and ease of doing business can help states attract investment and create more jobs