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<h1>Investment friendliness index to prompt state regulatory review and incentivise procedural reforms to attract private and foreign investment.</h1> The Investment Friendliness Index is being developed as a diagnostic, non-punitive tool to encourage states to review and reform state-level rules, regulations and procedures that impede private and foreign investment. Designed to promote competitive cooperative federalism, the index will be informed by industry consultation and coordinated by the Ministry of Finance with NITI Aayog and DPIIT to identify practical bottlenecks and incentivise procedural simplification across states.