NITI Aayog’s newly launched Investment Friendliness Index offers foreign investors a detailed guide to India’s diverse investment landscape, emphasising the importance of localisation and regional strengths for strategic decision-making.
NITI Aayog’s new Investment Friendliness Index is designed to give foreign companies a clearer guide to where they should place their bets in India, measuring states and Union Territories against criteria such as infrastructure, business climate, regulation, institutions and skills. The timing matters: as India’s economy becomes more connected through the goods and services tax, digital systems and wider transport corridors, the differences between individual states remain large enough to shape costs, delivery times and risk.
According to coverage in India Narrative, the case for a more localised approach is especially relevant for Turkish firms, which have increasingly looked at India as a single market rather than a patchwork of different industrial ecosystems. Even though Turkiye-India trade reached $6.88 billion in 2025-26, many businesses still begin with familiar entry points such as trade fairs, distributors or offices in Delhi and Mumbai. The article argues that this can obscure the practical realities on the ground, including land allocation, power tariffs, permits, incentives and the speed of administration.
The new index underlines that point by placing Gujarat at the top. Economic Times reported that the state scored 56.6 out of 100, helped by efficient ports, competitive industrial power and strong road and rail links. Those strengths make it particularly attractive for sectors such as machinery, chemicals, food processing and components, especially for exporters that depend on reliable utilities and easy access to overseas markets.
Maharashtra also ranks among the strongest performers, with Mumbai offering access to finance, headquarters and professional services and Pune providing a dense automotive and engineering base. Indian Express said the top tier also includes Odisha, Tamil Nadu and Goa, while Business Standard noted that the index covers 28 states and eight Union Territories across 84 indicators spanning eight pillars. For technology-led companies, Karnataka stands out because of Bengaluru’s talent pool, venture capital and research ecosystem, although NITI Aayog also highlights weaknesses in regulatory ease and land allotment that could complicate manufacturing investment. The broader message is that foreign firms, including Turkish investors, are likely to fare better if they treat India as a collection of distinct markets rather than one uniform destination.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
