Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance

NITI Aayog has released a report titled “Investment Favorability Index (IFI),” which provides a structured and data-driven framework to assess how effectively states and Union Territories create, enable, and sustain a favorable environment for investment. This index, developed following a directive from the Prime Minister during the ninth Governing Council meeting of NITI Aayog in July 2024 and announced in the Union Budget 2025-26, evaluates key policy, institutional, regulatory, and infrastructural parameters that influence investment decisions. It aims to strengthen India’s investment ecosystem, promote competitive and cooperative federalism by encouraging reforms at the state level, and advance the vision of a developed India@2047 through robust state investment ecosystems. The IFI assesses all 28 states and 8 Union Territories across eight pillars: infrastructure, business environment, resources, government policy, regulatory ease, institutional environment, financial robustness, and environmental resilience, using 84 indicators including secondary data and perception-based metrics from primary investor surveys.

For Banking, SSC, and RBI Grade B aspirants, this report is highly relevant for understanding current economic governance and policy initiatives. Questions may arise on the role of NITI Aayog in promoting economic development, the concept of cooperative and competitive federalism, and the significance of state-level reforms in attracting investment. Specific details like the eight pillars of the IFI, the top-performing states (Gujarat, Maharashtra, Tamil Nadu, Goa, Odisha), and the classification categories (Top Performers, Leading States, Emerging Performers, Aspirational States) could be tested. Furthermore, understanding the rationale behind the IFI – to boost private investment for industrialization, innovation, job creation, and sustained economic growth towards the Developed India@2047 vision – is crucial for general awareness and economic policy sections of these exams.

Source: PIB (Press Information Bureau)

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