Gujarat has cemented its position as India’s premier investment destination, clinching the top spot in the inaugural ‘Investment Friendliness Index 2026’ released by NITI Aayog. Scoring an impressive 56.6, the state outperformed other economic powerhouses, including Maharashtra (53.7) and Tamil Nadu (53.3), to lead the rankings among major Indian states. This achievement is a testament to the state’s robust economic policies and its commitment to realizing the ‘Viksit Bharat 2047’ vision.
The report highlights Gujarat’s policy stability and administrative efficiency as key drivers of investor confidence. The state’s Industrial Extension Bureau (iNDEXTb) has been instrumental, providing a seamless single-window clearance mechanism for investors. By streamlining the process for obtaining No Objection Certificates (NOCs) and ensuring a highly transparent regulatory environment, the state has significantly eased the path for setting up new industries. Furthermore, the government’s policy to restrict labor strikes in essential services has created a secure and stable working climate that provides long-term predictability for businesses.
Gujarat’s industrial success is deeply rooted in its world-class infrastructure. Modern industrial clusters—such as GIFT City, Dholera SIR, and the hubs at Sanand, Dahej, and Jhagadia—offer advanced “plug-and-play” facilities that allow companies to commence operations with minimal delay. This strong industrial ecosystem is further supported by superior connectivity; the state boasts roughly 10% of India’s total state highway network and features 635 kilometers of national expressways. This logistics efficiency has drastically reduced turnaround times, making Gujarat’s supply chain network highly competitive on both national and international levels.
The state’s economic resilience is equally compelling, evidenced by its 31% contribution to India’s total merchandise exports and a consistently high GSDP growth rate throughout FY 2019-24. With a per capita GSDP significantly higher than the national average, Gujarat also maintains the lowest fiscal deficit among major states at 2.81%. This disciplined fiscal management provides investors with the assurance of long-term economic sustainability. Additionally, competitive industrial electricity costs—roughly 29% lower than the national average—and reliable power supply further solidify Gujarat’s standing as the most attractive destination for capital investment in the country.
