List Of Top 15 Indian States In Business Environment Rankings [Updated 2025]

In 2025, India’s economic landscape is rapidly evolving, with each state bringing its own energy and ambition toward the growth. India's business environment rankings are a really important way to see how states are doing when it comes to innovation, smart policies, and generally being a good place to invest. If you're an entrepreneur, investor, or even a policymaker, knowing which states are stepping up their game can open doors to big opportunities and the next wave of growth.

The Economist Intelligence Unit (EIU) has released the Business Environment Ranking data for 2025, in which the top 15 Indian states are leading the way in business-friendly policies, infrastructure development, talent pools, and sectoral strengths. From Tamil Nadu’s industrial prowess to Gujarat’s investor magnetism and Telangana’s meteoric rise in life sciences and AI, each state exemplifies a distinct strategy for fostering enterprise and growth. For scouting a new market for investment, this ranking offers insights into the engines driving India’s economic progress. 

In this article, let’s explore the List Of Top 15 Indian States In Business Environment Rankings, which will be setting new benchmarks in India’s business climate, making them unique, and where the next leap in opportunity may await.

Here Is The List Of Top 15 Indian States In Business Environment Rankings [Updated 2025]

Source: EIU

Overview of the Top 15 Indian States In Business Environment Rankings

1. Tamil Nadu

Ranking Category: Achievers

Score: 7.4 out of 10

Tamil Nadu is one of the most industrialised states with a rich legacy in automobiles, electronics, textiles, and renewable energy. This state also has high literacy rates and an inclusive drive for skill development. Progressive policies encouraging women’s participation and promoting inclusive growth. Stable political scenario supporting long-term industrial growth.

2. Gujarat

Ranking Category: Achievers

Score: 7.3 out of 10

Gujarat is like a magnet for global investors, thanks to business-friendly policies and a robust industrial base. In Gujarat, there are various thriving sectors which includes manufacturing, chemicals, engineering, and financial services. Thius state is alspo have the strong infrastructure innovation through Viksit Gujarat Fund, expressways, and multi-modal hubs. It focuses on high-value jobs, technology adoption, and ease of doing business—with generous incentives for research, development, and upskilling locals.

3. Maharashtra

Ranking Category: Achievers

Score: 7.1 out of 10

Maharashtra is considered as the Economic powerhouse with Mumbai as the country’s financial capital. All the states policies fueling growth in MSMEs, manufacturing, logistics, and digital tech in Maharashtra. Here, there is ambitious investment targets—₹40 lakh crore towards MSMEs, aiming to create 50 lakh new jobs. Major focus on infrastructure, job creation, and export enhancement, supported by easy credit and investor-friendly regulations.

4. Karnataka

Ranking Category: Achievers

Score: 6.9 out of 10

Karnataka is considered as the epicenter of India’s IT, biotechnology, aerospace, and electronics industries. Many ambitious industrial policy (2025-30) with a goal of ₹7.5 lakh crore in investments and 20 lakh new jobs is focused by this states. Apart from this, there is a sharp focus on sustainable, regionally balanced industrialization and sunrise sectors like AI, green hydrogen, and medical tech. Equitable growth beyond Bengaluru through tailored incentives and industrial corridors.

4. Andhra Pradesh

Ranking Category: Achievers

Score: 6.9 out of 10

Andhra Pradesh is a shining example of pro-business reforms and investor-focused policies. Its streamlined administrative processes and online services for entrepreneurs makes the strategic investments in manufacturing, IT, infrastructure, and renewable energy. In Andhra Pradesh, there is booming in infrastructure like new industrial parks and single-window clearance, backed by ₹6.5 lakh crore of new MoUs and lakhs of new jobs anticipated.

4. Delhi

Ranking Category: Achievers

Score: 6.9 out of 10

Delhi is considered to be a heart of India, and it is India’s capital, which is marked as a magnet for startups, finance, banking, and IT. Many major policy thrusts for industrial transformation—₹10,000 crore for new hubs and a vision to become a global innovation and service center. There is a $50 billion FDI target, infrastructure modernization, and simplified business regulations for traders and MSMEs.

7. Telangana

Ranking Category: Achievers

Score: 6.8 out of 10

After the transformation into a new state, Telangana is rapidly growing and becoming a  rising star with robust growth in life sciences, AI, and green energy in India. In Telangana, various attractions have had massive investments done, including ₹3 lakh crore in 18 months, and have shown a massive 10.1% GDP growth rate. Progressive, inclusive development model with sectoral clusters and global co-creation initiatives.

8. Haryana

Ranking Category: Achievers

Score: 6.5 out of 10

Haryana is becoming the fastest growing in high-tech manufacturing and becoming industrial hub, which is favoured by its strategic NCR location like Gurugram.Many innovative policies to reduce compliance and digitise industrial land banks have been taken.Many major reforms in worker welfare, single-window clearances, and modern industrial townships were offered in the Haryana.

9. Kerala

Ranking Category: Achievers

Score: 6.2 out of 10

Kerala is now emerging as an investment magnet in IT, healthcare, space tech, tourism, and food processing. Here, there is world-class infrastructure, including digital connectivity, ports, and logistics corridors. Kerala is enabling investor-friendly policies, strategic industry corridors, and high scores in human development and governance.

10. Uttar Pradesh

Ranking Category: Performers

Score: 6.0 out of 10

Uttar Pradesh, which is one of the highest populated stats in India making the market with large-scale investments in manufacturing, infrastructure, MSMEs, and logistics. In, UP, many Industrial parks and new expressways powering regional business. UP is now trying to focus on simplifying regulations and pushing export-led growth.

11. Punjab

Ranking Category: Performers

Score: 5.8 out of 10

Punjab is the states in India which is strong in agri-based food processing, industrial machinery, textiles, and renewable energy. Progressive steps in MSMEs and ease-of-doing-business for entrepreneurs. Infrastructure and logistics upgrades supporting industry.

11. Rajasthan

Ranking Category: Performers

Score: 5.8 out of 10

Rajasthan is known for minerals, textiles, handicrafts, and solar energy. Business environment boosted by new policies, industrial parks, and digital governance. Focus on logistics and investment in renewable energy.

13. Madhya Pradesh

Ranking Category: Aspirers

Score: 5.6 out of 10

Madhya Pradesh has diversified sectors, including agriculture, auto, textiles, and renewable energy. Due to vast areas and eco-frienfly environment in MP, many investors are attract towards manufacturing and logistics ventures. Infrastructure improvement in transport and industrial corridors.

14. West Bengal

Ranking Category: Aspirers

Score: 5.1 out of 10

West Bengal is key player in food processing, information technology, petrochemicals, and SMEs in India. West Bengal is a strategic eastern gateway for trade and exports in India and it make the reforms to improve industry climate and entrepreneurship.

15. Bihar

Ranking Category: Aspirers

Score: 4.6 out of 10

BIhar is mainly focused government drive towards boosting MSMEs and logistics sectors. Bihar is now emerging opportunities in food processing and agro-based industries. It emphasis on building infrastructure and skilled workforce for future growth.

Conclusion:

India’s 2025 Business Ranking reflects a dynamic econom shift. These top Indian states In Business Environment Rankings driving through innovation, infrastructure and policy reforms ensuring the investors to invest and make policymekers alive.