EDITORIAL
Build on the NITI Aayog ranking by attracting diverse investments
Goa sprang a surprise recently by being ranked fourth in the NITI Aayog Investment Friendliness Index, 2026. The state outdid bigger and more industrialised states in investor friendliness.
Goa’s position in the index is remarkable as it was assigned a score of 53.1, just 3.5 points lower than Gujarat, which scored 56.6 and was the top performer. In fact, the difference in the scores between the state and the nearest contender in third position, Tamil Nadu, is slight at only 0.2 points.
In a previous index related to the business climate – the Ease of Doing Business (EoDB) index brought out by the Department for Promotion of Industry and Internal Trade (DPIIT) – Goa had fared badly, with a near-bottom 24th position. Since then, however, the state government has taken active measures to improve governance through changes in industrial policy, enhancing departmental efficiency, single-window clearance, online access to services and reducing cost barriers, among others. Regular stakeholder consultations between the government and industry followed.
For Goa, which is lumbered with the perception among outside businessmen as a place to unwind, holiday and enjoy, the fourth rank is important because it positions the state as a competitive investment destination. Investments from corporate houses and businesses are important to a state because they fast-track development by creating jobs, drive innovation, make economic growth resilient and add to political stability, among other benefits. Private investment is very important in today’s context when the Centre wants states to compete among themselves, be financially self-reliant and attract capital independently.
The index indicates that the state’s industrial ecosystem has improved hugely, yet how much of an economic power is Goa actually, compared to the states it has outranked? The state, it needs to be pointed out, does not face a shortage of investors. Each Goa Investment Promotion & Facilitation Board (Goa-IPB) brings in average investment proposals of around Rs 700 crore. On the other hand, there are questions about the quality of investments, as the proposals are mostly in real estate, hospitality and tourism, sectors that require large tracts of land. The state government has prioritised green and non-polluting industries for investors but also attracts industries that consume a lot of water, such as distilleries, and require labour from other states.
To decode NITI Aayog’s index, it is based on weights assigned to eight parameters as well as survey replies from industry stakeholders. The parameters comprise infrastructure, business climate, resources, government policy, regulatory ease, financial health, institutional environment and environmental resilience. Each parameter is comprehensive.
The index has come as a boost to the local government, which is gearing up for Assembly elections in the next few months. The fourth position is motivating, but it leaves plenty of room for improvement. The challenges before the state in attracting investors continue to be numerous, such as maintaining approval timelines, providing land for projects and addressing the scarcity of skilled labour.
The Investment Friendliness Index is the first by the Centre. It aims at stimulating the economic growth of states through the infusion of capital, be it foreign direct investment or business projects of domestic companies. The state government needs to use the index to imbibe the practices of better performers. High expenditure, as a percentage of GSDP, on skilling and healthcare, upgrades in infrastructure, including two international airports, new bridges and roads, and progress in renewable energy are the reasons behind the state’s fourth rank.
The state now needs to improve its export performance, attract foreign direct investment and pursue timely implementation of approved industrial projects to firm up its investor-friendly position.
