FinMin, Niti, DPIIT to work out parameters for 'Investment Friendliness Index of States': Expenditure Secretary Manoj Govil

The Finance Ministry, successful consultation with Niti Aayog and DPIIT, volition soon determine connected the parameters for the 'Investment Friendliness Index of States', which volition purpose to make steadfast contention among states to allure backstage investments, Expenditure Secretary Manoj Govil said connected Sunday.

The 2025-26 Budget announced the launching of an Investment Friendliness Index of States successful 2025 to further the tone of competitory cooperative federalism.

In an interrogation with PTI, Govil said portion galore regulations and reforms person been done astatine the level of the Centre, immoderate investors consciousness that akin reforms are needed astatine the authorities level.

The scale volition nudge the states to look astatine the regulations to spot what is holding backmost investments.

"The main thought is not truthful overmuch to fertile the states and to accidental who is bully oregon atrocious but much to punctual the states to instrumentality a look astatine their ain rules, regulations and procedures and to find retired from them which are the ones which investors deem oregon find unfriendly, unworkable oregon hard and however does that impact the states successful getting investments," Govil said.

The timeline for the motorboat of the scale would beryllium decided by the Department of Economic Affairs and Niti Aayog, too the Department for Promotion of Industry and Internal Trade (DPIIT).

Govil said each states would similar much concern to travel successful and hence they would similar to re-examine their regulations. In that spirit, the thought of this scale has travel successful Budget.

"To marque the index, we inactive person to prime the criteria, its not formed successful stone," helium said.

For instance, if immoderate states person 15 procedures for an capitalist wanting to acceptable up a factory, portion immoderate person lone five, the lagging states could emulate the successes achieved by their counterparts.

"More than us, it is the authorities governments who volition person to bash this workout and find retired what are the problems that the investors face," Govil added.

Currently, the DPIIT undertakes an yearly workout of ranking states and national territories successful presumption of easiness of doing business. Also, it categorises states and UTs show crossed the cardinal pillars of Logistics Infrastructure, Logistics Services and Operating and Regulatory Environment.