Odisha has secured a place among the top five states in NITI Aayog's first-ever Investment Friendliness Index (IFI) 2026, with Chief Minister Mohan Charan Majhi hailing the recognition as a defining milestone in the state's economic journey. The index, India's first comprehensive evidence-based framework for assessing investment ecosystems across states and union territories, placed Odisha alongside Gujarat, Maharashtra, Tamil Nadu, and Goa.

What the Index Measures

The Investment Friendliness Index released by NITI Aayog evaluates states on parameters including governance reforms, ease of doing business, institutional efficiency, and investor facilitation. It is described as India's first evidence-based, comprehensive framework for ranking investment ecosystems across all states and Jammu and Kashmir. Odisha's placement among the top five reaffirms its emergence as one of India's most competitive investment destinations, according to state officials.

What the Chief Minister Said

Chief Minister Majhi congratulated the people of Odisha, all state government departments, industry partners, entrepreneurs, investors, and public servants on the achievement. 'Odisha's recognition among the top five investment-friendly states is a matter of immense pride for every Odia. This achievement reflects our collective commitment to transparent governance, industry-friendly policies and efficient service delivery. We thank our industry partners for their continued trust in Odisha. This recognition is not our destination but a milestone. We will continue to undertake reforms, strengthen infrastructure and create an even more enabling ecosystem so that Odisha emerges as one of the most preferred investment destinations in India and globally,' Majhi said.

He also expressed gratitude to Prime Minister Narendra Modi, crediting the Centre's push for cooperative federalism and the 'Double Engine Government' model with accelerating Odisha's progress across infrastructure, industrialisation, connectivity, logistics, and skilling.

Key Reforms Behind the Ranking

State officials attribute the ranking to a sustained push on digital governance, time-bound project approvals, and a robust Single Window Clearance system. Progressive policy interventions and strengthened institutional mechanisms have, according to the government, created an enabling ecosystem that supports investment across diverse sectors. The state has also prioritised modern industrial infrastructure — integrated industrial parks, logistics corridors, improved connectivity, and reliable power supply.

Broader Economic Impact

Chief Minister Majhi noted that Odisha is evolving beyond its traditional industrial strengths to become a diversified manufacturing and services hub. Incoming investments are reportedly strengthening industrial value chains, supporting MSMEs and startups, promoting innovation, and generating employment for youth. Continuous engagement with domestic and global investors, alongside policy stability and efficient project facilitation, has further bolstered the state's reputation as a trusted investment destination.

What Comes Next

The state government has indicated it will continue pushing reforms and infrastructure development to consolidate and improve on the IFI ranking in coming years. With the index now established as an annual benchmark, Odisha's performance will be watched closely by investors and competing states alike.