Pioneer News Service
Ranchi
NITI Aayog has released the ‘Investment Friendliness Index-2026’ for the first time under the ‘Viksit Bharat 2047’ (Developed India 2047) goal. In the category of 17 major states, Jharkhand secured the 16th position, with a total score of 41.3.
Despite being rich in mineral wealth and industrial potential, Jharkhand and Bihar have been placed in the ‘Emerging’ states category regarding investment attraction. However, despite their industrial potential, both states still lag behind other major states; among the major states, only Bihar ranks lower than Jharkhand. When considering all 36 states and Union Territories of the country, Jharkhand holds the 25th position.
According to the report, Jharkhand’s greatest strengths are the availability of natural resources and its financial position. The state has benefited from strong performance in coal and lignite production. Its financial health is also viewed positively due to a relatively low interest payment burden; these two factors have bolstered the state’s investment score.
Conversely, Jharkhand has lagged in creating an investor-friendly business environment. The report identifies the business climate as the state’s weakest link. The extremely low level of Foreign Direct Investment (FDI) is a particular cause for concern. In the 2023-24 fiscal year, the state received only $0.06 million in FDI, reflecting a weak capacity to attract investment.
According to the report, the industrial sector accounts for 44.7% of Jharkhand’s economy, while the service sector contributes 50% and agriculture 5.3%. Key industries in the state include basic metals, coke, and refined petroleum products. Despite this, significant work remains to be done to boost investor confidence, expedite industrial approvals, create a better industrial environment, and attract foreign investment.
Gujarat (56.6), Maharashtra (53.7), and Tamil Nadu (53.3) occupy the top three spots on the list of major states. Meanwhile, with a score of 41.3, Jharkhand ranks ahead of only Bihar (41.2). West Bengal also has a score of 41.3, yet it has been ranked above Jharkhand.
The report states that Jharkhand needs to make significant improvements to its business climate to attract investment. Effective efforts are particularly required to boost Foreign Direct Investment (FDI); the state recorded only $0.06 million in FDI during the 2023-24 fiscal year. The environment for setting up industries needs to be made more competitive and investor-friendly.
NITI Aayog has indicated that the mere possession of mineral wealth or an industrial base will not suffice to attract investment. Competition among states now hinges on superior infrastructure, transparent policies, expedited approval processes, efficient administration, and an investor-friendly business environment. If Jharkhand improves in these areas, its natural resources and industrial potential could play a pivotal role in attracting substantial investments.
