CHANDIGARH: Punjab has ranked 22nd in NITI Aayog’s inaugural Investment Friendliness Index 2026, performing below national average in resources, govt policy, and financial health.Released Friday, the index assessed all 28 states and eight UTs While Punjab scored strongly in institutional environment (72%), environmental resilience (69%), and regulatory ease (67%), its overall ranking was dragged down by low scores in govt policy (20%), resources (32%) and financial health (42%).The state registered 48% in infrastructure and 36% in business climate.
Invt friendliness index
The findings ignited a war of words.Punjab BJP president Kewal Singh Dhillon said the rankings exposed the AAP govt’s “hollow claims”, alleging despite high-profile investment summits and “lakhs of crores worth of MoUs,” the state failed to restore investor confidence.AAP spokesperson Neel Garg shot back, telling the opposition to “first see what was there during their own rule.” Garg argued that the AAP govt inherited a debt trap and borrowed primarily to service legacy loans while boosting state revenues.He highlighted the govt’s delivery of jobs, free electricity, and employee regularisation, adding that despite the Centre squeezing state grants, AAP had significantly upgraded Punjab’s education, healthcare, and power sectors.SAD functionary Bikram Singh Majithia posted on X, “They cooked up a grand investment narrative and burned through crores. The result? 22nd rank. The drama made headlines; the real investment never arrived.”Punjab Congress president Amrinder Singh Raja Warring posted on X that Punjab needs “industries and jobs, not photo opportunities, hoardings, and false promises”.According to the report, Punjab’s strengths lie in its strong regulatory framework, efficient institutional environment, and low crime rates.Investors reported high satisfaction with the timelines for construction permits and utility connections.The state also secured the highest grievance redressal perception score among large states. Additional boosters included a high railway density, low transmission and distribution losses (~4%), and a high ratio of patent applications relative to registered enterprises.However, the report identified resources and financial health as critical blind spots. Punjab’s outstanding liabilities have hovered around 46% of GSDP over the past five years, 16% points higher than the large-state average. Interest payments consume 4–5% of GSDP, compared to the category average of 3.1%.NITI Aayog recommended ramping up education spending, currently four percentage points below the category average, to boost STEM enrolment and strengthen the technical workforce.Stakeholder feedback praised Punjab’s transparent industrial policy, efficient single-window clearance, and smooth approvals for environmental and commercial contracts.However, businesses flagged the need for better road infrastructure, reliable power supply, disaster management and transparency in land allotment.
