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Odisha Ranks Fourth in NITI Aayog's Investment Friendliness Index: What It Means for the State

Odisha has been recognized as the fourth most investment-friendly large state in India, according to NITI Aayog's latest Investment Friendliness Index. This ranking places Odisha behind Gujarat, Maharashtra, and Tamil Nadu, showcasing its potential for attracting investments. The index evaluates states based on various parameters, including infrastructure and business climate. With this recognition, Odisha aims to enhance its investment ecosystem and promote economic growth. Read on to learn more about the implications of this ranking and what it means for the state's future.
By Narendra Chaudhary Jul 17, 2026, 19:39 IST

Odisha's Investment Ranking Revealed


New Delhi/Bhubaneswar: According to a report released on Friday, Odisha has secured the position of the fourth most investment-friendly large state in India, as per NITI Aayog's Investment Friendliness Index. The top three states are Gujarat, Maharashtra, and Tamil Nadu.

Gujarat leads the list with an impressive overall score of 56.6, followed closely by Maharashtra and Tamil Nadu. Odisha's ranking places it ahead of Madhya Pradesh and Andhra Pradesh.



The Investment Friendliness Index assesses all 28 states and eight Union Territories based on eight key parameters: infrastructure, business climate, resource availability, government policies, regulatory ease, institutional environment, financial health, and environmental resilience.


The rankings are categorized into three groups: large states, hilly and northeastern states, and city states/Union Territories. Bihar, Jharkhand, and West Bengal were identified as the lowest-ranked large states, while Uttarakhand, Assam, and Himachal Pradesh led the hilly and northeastern states category.

NITI Aayog's Vice Chairman, Ashok Kumar Lahiri, stated that this index, introduced in the Union Budget for 2025-26, aims to enhance competitive and cooperative federalism by encouraging reforms and creating a favorable investment environment across various states.