Hyderabad: Telangana emerged as one of India’s top destinations for foreign investment in FY24, attracting US$3.03 billion (approximately ₹29,175 crore) in Foreign Direct Investment (FDI), even though it was ranked only 13th among the 36 states and Union Territories in NITI Aayog’s maiden Investment Friendliness Index 2026.With a score of 47.3, Telangana was classified as a ‘frontrunner’ and placed 10th among the country’s 17 large states. Gujarat topped the index with a score of 56.6, followed by Maharashtra (53.7) and Tamil Nadu (53.3), while Telangana trailed Rajasthan, Uttarakhand and Chhattisgarh in the overall rankings.Yet, the state’s ability to attract investment appears considerably stronger than its overall ranking suggests. With FDI inflows of US$3.03 billion in FY24, Telangana trailed only Maharashtra, Gujarat, Karnataka and Delhi among the states whose profiles reported investment data, effectively placing it among the country’s top investment destinations.The report attributed Telangana’s investment appeal to a combination of business-friendly policies, strong economic fundamentals and Hyderabad’s established industrial ecosystem.According to the index, the TS-iPASS single-window clearance mechanism, digitised approvals, time-bound permissions and transparent land-allotment procedures have boosted investor confidence. Telangana also enjoys a significant advantage in industrial land availability, with land earmarked for industry being nearly three times the average for the large states.The report also highlighted Telangana’s talent pool, with STEM enrolment estimated to be nearly twice the national average. Hyderabad’s established ecosystem in pharmaceuticals, life sciences, information technology and advanced manufacturing was cited as another key factor driving investment.Investors surveyed for the index praised Telangana’s policy stability, reliable power supply, commercial court system, efficient clearances and the quality of life in Hyderabad.Telangana’s strong FDI performance, despite remaining outside the top 10 in the overall rankings, underlines the state’s growing importance in India’s investment landscape and points to a gap between its investment outcomes and broader ease-of-doing-business indicators.–Investment Friendliness Index 2026: Top States and Telangana’s PositionRank, State/UT, ScoreGujarat (56.6)Maharashtra (53.7)Tamil Nadu (53.3)Goa (53.1)Odisha (52.4)Delhi (49.9)Madhya Pradesh (48.9)Andhra Pradesh (48.7)Karnataka (48.7)Rajasthan (48.1)Uttarakhand (47.5)Chhattisgarh (47.5)Telangana (47.3)For the FDI rankings:Maharashtra ($15.1 billion)Gujarat ($7.3 billion)Karnataka ($6.57 billion)Delhi ($6.52 billion)Telangana ($3.03 billion)Haryana ($1.91 billion)
