Why in News?
NITI Aayog launched the Investment Friendliness Index (IFI) to assess and improve the investment ecosystem across States and UTs through competitive and cooperative federalism.
What is IFI?
- A data driven index that benchmarks how effectively States and UTs attract and sustain investments by evaluating their policy, regulatory, institutional, and infrastructure ecosystem.
Background
- Proposed after the 9th NITI Aayog Governing Council Meeting (2024).
- Announced in the Union Budget 2025-26.
Key Features
- Covers 28 States and 8 UTs.
- Based on 84 indicators using: Secondary data and Investor perception survey.
Eight Pillars
- Infrastructure. Business Climate, Resources, Government Policy, Regulatory Ease, Institutional Environment, Financial Health, and Environmental Resilience
Performance Categories
- Top Performers: Above 50
- Frontrunners: 45 to 50
- Emerging Performers: 40 to <45
- Aspiring States: Below 40
Top Performers
- Overall: Gujarat, Maharashtra, Tamil Nadu, Goa, Odisha.
- Hilly & NE States: Uttarakhand.
- UTs & City States: Goa.
Significance
- Promotes competitive and cooperative federalism.
- Encourages State level reforms and ease of investment.
- Supports Viksit Bharat @2047 and Viksit Rajya @2047.
[2019] Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
[A] Maintenance of law and order
[B] Paying taxes
[C] Registering property
[D] Dealing with construction permits