CHANDIGARH: The NITI Aayog's Investment Friendliness Index 2026 has ranked Punjab 22nd overall and 14th among large states. The state scored 44.7. Haryana ranked 15th overall, Chandigarh 16th and Himachal Pradesh 17th.
According to the report, Punjab's strengths include its rail infrastructure and institutional environment. However, it said the state has scope to improve its financial health due to high outstanding liabilities.
“Punjab’s high score in institutional environment can be attributed to its low cybercrime rate of 4 per cent, which is lower than the category average, controlled economic crime rate at ~5 per cent, again lower than its category average, and favourable perception scores in the grievance redressal mechanism (highest among large states),” the report said.
The report said Punjab needs to improve road quality, ensure more reliable power supply, make land allotment procedures more transparent and strengthen disaster management systems.
“The land allotment processes offer room for additional transparency and procedural clarity. More streamlined and clearly communicated steps in land allocation would help businesses plan projects with greater predictability and reduce administrative uncertainty. The disaster management systems can be strengthened by adopting more advanced technologies and quicker response mechanisms. Enhancing preparedness, real-time monitoring and response capabilities would boost overall resilience and create a more secure operating environment for industries,” it said.
The report noted that Punjab has a strong railway network, a transparent industrial policy and an efficient single-window clearance system.
“The single-window system is efficient, offering timely clearances and a smoother approval experience. The portal is streamlined and responsive, and the NOC process functions effectively. This reduces administrative delays and enhances ease of doing business for both new and expanding enterprises,” it added.
“The regulatory processes such as environmental clearances, construction permits and commercial contract approvals operate smoothly, supported by transparent labour laws. The predictability and clarity across these processes contribute to faster project implementation and create a more conducive operating environment for businesses,” it further said.
Reacting to the rankings, BJP Punjab president Kewal Singh Dhillon alleged that the report had exposed the AAP government's claims on industrial development.
“However, the truth has now been placed before the entire country as Punjab has been ranked 22nd among 28 States and 8 Union Territories, clearly exposing the government's failure to create an investor-friendly environment," he said.
“The AAP government has spent crores of rupees on advertisements, photo opportunities and self-promotion, but industries have not come to Punjab, employment opportunities have not increased and investors have steadily lost confidence in the state," Dhillon said.
The report gave Himachal Pradesh an overall score of 46.1, ranking it third among northeastern and hilly states and 17th overall. It attributed the performance mainly to the state's resources pillar, supported by high women workforce participation and institutional performance.
Chandigarh scored 47, ranking third among city states and 16th overall, with strong performance in infrastructure and resources.
Haryana scored 47.1, ranking 11th among large states and 15th overall. The report said its performance was driven by the business climate and infrastructure pillars, while identifying resources, regulatory ease and environment resilience as areas for improvement.