Andhra, Chhattisgarh, Bihar are outsmarting richer states on investments (without outspending)
A licence, a statute and a purchase contract: how three challenger states are gaining ground without simply writing bigger subsidy cheques.
Recent data from July revealed contrasting narratives about India's state industrial competitiveness. While overall investments surged by nearly two-thirds from ₹35.2 trillion in FY24 to ₹58.3 trillion in FY26, with private promoters contributing to seven out of every ten rupees, the ranking of states based on their investment readiness varied significantly.
Andhra Pradesh, which had ranked ninth in FY24 with an investment of ₹1.06 trillion, surged to fifth place in the following year and claimed the second position in FY26 with ₹8.95 trillion. Rajasthan, Uttar Pradesh, and Tamil Nadu also witnessed improvements in their ranks. Chhattisgarh, previously absent from the top ten, entered the league in FY25, replacing Tamil Nadu.
Comparing the investment ranks with the states' investment friendliness index scores, revealing stark differences emerged. Andhra Pradesh, leading in investment, held the eighth position on the index, demonstrating a gap of six places between the two metrics. Rajasthan, Uttar Pradesh, and Tamil Nadu exhibited similar discrepancies, with investment ranks seven, ten, and seven places higher, respectively, than their readiness ranks.
On the other hand, states like Gujarat and Madhya Pradesh displayed a closer alignment between their investment ranks and readiness scores. Gujarat topped the investment friendliness index with a score of 56.6, while Madhya Pradesh maintained a perfect alignment between the two metrics, ranking seventh in both categories.
Written by urgent.news from YourStory's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
