Shimla: Himachal Pradesh has secured the third position among hilly and Northeastern states in NITI Aayog’s inaugural Investment Friendliness Index (IFI) 2026, marking a significant milestone in the state’s efforts to emerge as a preferred investment destination beyond its traditional identity as a tourism-driven economy.
The state ranked third after Uttarakhand and Assam, securing a score of 46.1 points in the index. The recognition comes as the Himachal Pradesh Government intensifies efforts to attract investments in emerging sectors such as medical cannabis, pharmaceuticals, green energy, food processing, wellness tourism, natural fibres, organic products and green industries.
According to the NITI Aayog report, Himachal Pradesh has successfully built investor confidence despite geographical challenges such as mountainous terrain, limited land availability and difficult transportation logistics. The report attributes the state’s growing appeal to its strong law and order situation, peaceful social environment, educated workforce and transparent administrative system.
The report also highlights the success of the Baddi-Barotiwala-Nalagarh (BBN) industrial belt, which has evolved into one of India’s leading pharmaceutical manufacturing hubs. Home to hundreds of industrial units, the BBN region has generated employment for thousands of people and continues to be a major driver of the state’s industrial growth.
Building on this industrial base, the state government is now working to diversify its investment landscape by encouraging industries focused on sustainable development and high-value sectors. Initiatives promoting medical cannabis, organic products, natural fibres and environmentally friendly industries are aimed at creating a new investment ecosystem while generating employment opportunities.
NITI Aayog has recognised Himachal Pradesh for its strong institutional framework, quality human resources and favourable social indicators. High literacy levels, greater participation of women in the workforce, a skilled labour pool and an overall high quality of life have enhanced the state’s attractiveness for domestic and global investors. The report also cites the state’s safe working environment and stable governance as key strengths encouraging companies to consider Himachal for future expansion.
Chief Minister Sukhvinder Singh Sukhu said the ranking reflects the government’s sustained focus on improving the ease of doing business through the Business Reforms Action Plan (BRAP).
“Our government has consistently focused on BRAP, thereby enhancing ease of doing business. The state’s top ranking reflects the success of our reform-oriented approach and commitment towards creating a transparent, efficient and investor-friendly ecosystem,” the Chief Minister said.
He added that the state’s strong performance across key pillars provides a solid foundation for sustainable industrial development and employment generation. The index has specifically acknowledged Himachal’s strengths in institutional effectiveness, regulatory environment, human resources, women’s workforce participation and investor-friendly governance.
Industries Minister Harshwardhan Chauhan said the Investment Friendliness Index should be viewed not merely as a ranking but as a benchmark for assessing the economic potential and investment readiness of states.
He said Himachal Pradesh’s third-place ranking among hilly states demonstrates that the state is steadily moving beyond its traditional economy and progressing towards an investment-led growth model. According to the minister, the recognition will further strengthen investor confidence and help attract new investments, accelerating industrial development and creating employment opportunities across the state.
