CHANDIGARH: NITI Aayog’s Investment Friendliness Index 2026 has ranked Punjab 22nd overall and 14th among large states. The state scored 44.7 points. Haryana ranks 15th overall, Chandigarh 16th and Himachal Pradesh 17th.
According to the report, Punjab’s strengths include its railway infrastructure and institutional environment. However, he said the state has room to improve its financial health due to high outstanding liabilities.
“Punjab’s high score on the institutional environment can be attributed to its low cybercrime rate of 4 percent, which is lower than the category average, controlled economic crime rate at ~5 percent, again lower than its category average, and favorable perception scores on the grievance redressal mechanism (highest among large states),” the report said.
The report said Punjab needs to improve road quality, ensure more reliable electricity supply, make land allocation procedures more transparent and strengthen disaster management systems.
“Land allocation processes provide scope for additional transparency and procedural clarity. More efficient and clearly communicated steps in land allocation would help businesses plan projects with greater predictability and reduce administrative uncertainty. Disaster management systems can be strengthened by adopting more advanced technologies and faster response mechanisms. Increased preparedness, a safer environment for real-time monitoring and response. industries”, it says.
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, providing timely clearances and a smoother approval experience. The portal is efficient and responsive and the NOC process works effectively. This reduces administrative delays and increases the ease of doing business for both new and expanding enterprises,” he added.
“Regulatory processes such as environmental clearances, construction permits and commercial contract approvals operate smoothly, supported by transparent labor laws. Predictability and clarity in all these processes contribute to faster project implementation and create a more favorable operating environment for businesses,” it added.
