NITI Aayog Indices and Rankings

NITI Aayog Indices and Rankings

Why in News?

The premier policy think tank of the Indian Government “NITI Aayog” has expanded its index-based governance approach, including the 2026 Investment Friendliness Index.

• These indices and rankings measure the developmental performance of States and Union Territories (UTs).

NITI Aayog Indices, Indexes and Indicators

• SDG India Index: The SDG India Index measures the progress of States and UTs towards the United Nations Sustainable Development Goals (SDGs).
  • It was first released in December 2018 and was developed with the United Nations in India.
  • The index covers 16 of the 17 global SDGs, while Goal 17 is excluded from the ranking and assessed qualitatively. 
  • The framework uses a large set of indicators and produces a composite score from 0 to 100.
  • States and UTs are classified as Aspirant (0–49), Performer (50–64), Front-Runner (65–99) and Achiever (100).
  • In the 2023–24 edition, India’s overall score increased from 66 to 71. Kerala and Uttarakhand jointly topped the States with 79, followed by Tamil Nadu (78). 
  • Bihar recorded the lowest score at 57, followed by Jharkhand (62). Among UTs, Chandigarh occupied the top position.
• Investment Friendliness Index: The Investment Friendliness Index (IFI) evaluates the ability of States and UTs to create an environment conducive to business investment.
  • It was formally announced in the Union Budget 2025–26, with its first edition released in July 2026.
  • Developed with CRISIL, it serves as a domestic replacement for the discontinued World Bank Ease of Doing Business rankings, according to the provided source.
  • The index uses 84 indicators across eight pillars: Infrastructure, Business Climate, Resources, Government Policy, Regulatory Ease, Institutional Environment, Financial Health and Environmental Resilience. 
  • Its data combines official government information with an investor perception survey involving 1,850 investors.
  • The categories are Top Performers, Frontrunners, Emerging Performers and Aspiring States.
  • In the 2026 edition, only five States crossed a score of 50: Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha. Gujarat ranked first overall, followed by Maharashtra and Tamil Nadu. 
  • Among hilly States, Uttarakhand topped, while the source identifies Goa as the leading UT category performer, followed by Delhi and Chandigarh.
• Export Preparedness Index: The Export Preparedness Index (EPI) assesses States and UTs according to their export readiness, policy framework and actual export performance.
  • It was first published in August 2020 and was developed with the Institute for Competitiveness.
  • Its four principal pillars are Policy & Governance, Export Infrastructure, Trade Ecosystem and Export Performance. 
  • The framework contains 70 indicators across 13 sub-pillars.
  • States and UTs are grouped into categories such as Leaders, Challengers and Aspirers, with classification also distinguishing large States from small States, North-Eastern States and UTs.
  • In the EPI 2024 edition, Maharashtra ranked first among large States with a score of 68.01, followed by Tamil Nadu (64.41) and Gujarat (64.02). 
  • Among smaller States/UTs, Uttarakhand topped the group, followed by Jammu & Kashmir and Nagaland.
• National Multidimensional Poverty Index: The National Multidimensional Poverty Index (MPI) moves beyond income-based poverty measurement by examining deprivation across health, education and living standards.
  • Its baseline report was released in 2021, followed by a 2023 progress review. 
  • The index was developed with the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
  • Its data source is the National Family Health Survey (NFHS), comparing NFHS-4 (2015–16) with NFHS-5 (2019–21). The methodology follows the Alkire-Foster approach.
  • The framework consists of three equally weighted dimensions and 12 indicators. Two India-specific indicators highlighted by the source are Maternal Health and Bank Accounts.
• State Energy and Climate Index: The State Energy and Climate Index (SECI) evaluates State-level performance relating to energy transition, energy accessibility and environmental sustainability. It was first released in April 2022.
  • The index contains 27 key performance indicators divided into six parameters. 
  • Their respective weights are Discoms’ Performance (40%), Access, Affordability and Reliability of Energy (15%), Clean Energy Initiatives (15%), Energy Efficiency (6%), Environmental Sustainability (12%) and New Initiatives (12%).
  • States are categorized as Front Runners, Achievers and Aspirants.
  • In Round 1, Gujarat ranked first among large States, followed by Kerala and Punjab. 
  • Among small States, Goa topped, followed by Tripura and Manipur. Chandigarh recorded the highest score among UTs.
• State Health Index: The State Health Index measures both overall health performance and year-on-year incremental improvement.
  • Established in 2017, it was developed with technical assistance from the World Bank and consultation with the Ministry of Health and Family Welfare.
  • It is a weighted composite index comprising 24 indicators across three domains: Health Outcomes, Governance and Information, and Key Inputs/Processes.
  • States and UTs are classified into Larger States, Smaller States and Union Territories.
  • In its Fifth Edition, Kerala ranked first overall, followed by Tamil Nadu and Telangana. Uttar Pradesh, Assam and Telangana recorded the maximum year-on-year improvements.
• School Education Quality Index: The School Education Quality Index (SEQI) evaluates State and UT performance in school education, with emphasis on outcome-based indicators.
  • First published in 2019, it was developed with the Ministry of Education and World Bank.
  • It contains 30 indicators divided into Outcomes and Governance Processes Aiding Outcomes.
  • The framework distinguishes Large States, Small States and UTs.
  • In the 2026 edition, Punjab topped the rankings, overtaking Kerala. It attributes the improvement to progress in digital infrastructure, school facilities and standardized learning outcomes. 
  • Manipur is identified as the top performer in another category, while Chandigarh ranked first among UTs.
• Composite Water Management Index (CWMI): It was designed to create a culture of data-driven water governance and enable States to learn from one another’s practices.
  • CWMI assesses the performance of States across major dimensions of water-resource management, including: Groundwater management, Irrigation management, Watershed development, etc. 
  • The index focuses on relative performance and improvement over time, rather than merely measuring the absolute availability of water. 
  • The 2019 report compared performance for 2017–18 with trends from 2015–16 and 2016–17.
  • This is developed by NITI Aayog, in association with the Ministry of Jal Shakti and the Ministry of Rural Development.
  • The index provides a comparative performance framework rather than the Aspirant/Performer/Front-runner classification used by the SDG India Index.
  • The 2019 assessment highlighted that 16 of 27 assessed States scored below 50 out of 100, placing them in the low-performing range.
  • The Composite Water Management Index 2.0, published in 2019, remains the latest edition.
  • In CWMI 2.0, Gujarat retained the top position among States.
• India Innovation Index: The India Innovation Index is NITI Aayog’s framework for assessing the innovation capabilities and performance of Indian States and Union Territories.
  • The index broadly examines two sides of innovation: Inputs/Enablers → Innovation Performance
  • The index is developed by NITI Aayog in collaboration with the Institute for Competitiveness. 
  • NITI Aayog describes it as one of its major instruments for promoting competitive federalism. 
  • The India Innovation Index 2021 used 66 indicators, grouped under 16 sub-pillars and 7 key pillars.
  • The framework broadly captures: Human Capital, Investment, Knowledge Workers, Business Environment, Safety and Legal Environment, Business Sophistication, Knowledge Output and Knowledge Diffusion.
  • States/UTs are grouped into separate categories to ensure more meaningful comparisons: Major States, North-Eastern and Hill States and Union Territories and City States.
  • In 2021, Top ranking state: Karnataka (18.01), NE & Hill state: Manipur (19.37), UTs & City State: Chandigarh (27.88). 
  • Among Major States, Telangana ranked second and Haryana third.
  • India Innovation Index 2025, including a research-project process during 2025–26.
• Aspirational Districts Programme — Delta Ranking: The Aspirational Districts Programme (ADP) is a flagship NITI Aayog initiative launched in January 2018 to rapidly transform 112 of India’s most under-developed districts.
  • Districts are assessed on progress across five broad socio-economic themes: Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion & Skill Development, Infrastructure.
  • These themes contain 49 Key Performance Indicators (KPIs).
  • The programme is implemented by NITI Aayog, working with Central Ministries, State Governments, district administrations and development partners.
  • Its distinctive institutional model is the 3C approach: Convergence + Collaboration + Competition.
  • The distinctive feature is Delta Ranking. Delta = change/incremental improvement over a specified period.
  • The original system used monthly delta rankings. NITI Aayog’s 2025–26 Annual Report states that the upgraded Champions of Change 2.0 platform now supports quarterly delta rankings.
• District Hospital Index: The District Hospital Index (DHI) evaluates the performance of district hospitals, which constitute a crucial component of India’s secondary healthcare system.
  • The index examines hospital performance through indicators relating to: Infrastructure and structure, Processes, Health outcomes, Service delivery, Hospital utilisation and efficiency.
  • NITI Aayog developed the framework in collaboration with the Ministry of Health & Family Welfare and with technical support from WHO India and other stakeholders.
  • For the first round, NABH-QCI was responsible for data validation. The first assessment covered 707 district hospitals and used 10 Key Performance Indicators (KPIs) under two broad domains: Structure and Output.
  • The assessment primarily used Health Management Information System (HMIS) data for 2017–18. 
  • Round II was expanded substantially to 17 KPIs, covering four domains: Structure → Process → Output → Outcome.
    • Medical college hospitals were excluded from the Round II assessment. 
    • The assessment primarily uses HMIS data for FY 2020–21 and FY 2021–22, with independent validation of a representative sample of approximately 10% of district hospitals.
  • The District Hospital Index is fundamentally a hospital-performance benchmarking framework.

Frequently Asked Questions (FAQs):

1. What are the important NITI Aayog indices in India?
NITI Aayog indices include SDG India, Innovation, Health, School Education Quality, Export Preparedness, Water Management, and Energy & Climate.

2. What is the SDG India Index?
It measures States’ and UTs’ progress toward Sustainable Development Goals using standardized indicators and composite scores.

3. What does the India Innovation Index measure?
It measures States’ and UTs’ innovation capabilities, enabling environment, inputs, outputs, and overall innovation performance.

4. What is the State Health Index?
It measures States’ health outcomes, governance, key inputs, processes, and incremental annual health performance.

5. What does the School Education Quality Index measure?
It measures States’ and UTs’ school education outcomes and governance processes supporting educational performance.

6. What is the Export Preparedness Index?
It assesses States’ and UTs’ export readiness, infrastructure, business environment, policy ecosystem, and export performance.

Disclaimer: Information in this article is based on official announcements and public records. Regulations and implementation details may evolve over time.