<h1>NITI Aayog to Release Phase Two of Investment Friendliness Index Soon, Encouraging States to Enhance Investment Climates.</h1> NITI Aayog is working on the second phase of the Investment Friendliness Index of States, expected to be released in one to two months. Announced in the Union government's FY26 Budget, the index aims to encourage states to enhance their investment climates by identifying regulatory barriers. The Ministry of Finance, in collaboration with NITI Aayog and DPIIT, is developing the index parameters. The initiative seeks to foster competitive cooperative federalism, motivating states to attract private investment and boost their economies. The index will not rank states but will help them improve their investment environments based on industry feedback.