NITI Aayog Unveils Investment Friendliness Index (IFI) to Boost State-Level Competitiveness

NITI Aayog has introduced the 'Investment Friendliness Index' (IFI), a strategic, data-driven framework designed to evaluate and rank Indian states and Union Territories based on the robustness of their investment ecosystems. As India strives to become a global manufacturing hub and attract significant Foreign Direct Investment (FDI), this index serves as a critical tool for fostering competitive federalism among states. The IFI evaluates regions across eight distinct pillars, providing a holistic view of the ease of doing business. A standout feature of this index is the inclusion of 'Environmental Resilience' as a core pillar. This inclusion marks a paradigm shift in India’s development narrative, signaling that industrial growth can no longer be decoupled from ecological sustainability. By benchmarking states on their ability to balance industrial development with environmental safeguards, the IFI encourages sub-national governments to adopt green industrial policies, adhere to Environmental Impact Assessments (EIA), and promote sustainable infrastructure.