UPSC Prelims Practice Questions — Gujarat tops NITI first Investment Friendliness Index 2026

Q1. The Investment Friendliness Index (IFI) 2026, which ranked Gujarat first among large States, was compiled and released by which one of the following institutions?

  • A. NITI Aayog
  • B. Department for Promotion of Industry and Internal Trade
  • C. Reserve Bank of India
  • D. Fifteenth Finance Commission

Q2. With reference to the Investment Friendliness Index 2026, which one of the following correctly pairs the top-ranked large State with its score?

  • A. Gujarat — 56.6
  • B. Maharashtra — 56.6
  • C. Gujarat — 53.7
  • D. Tamil Nadu — 53.3

Q3. Under the Investment Friendliness Index 2026, the perception-based component of a State's score is derived from which one of the following?

  • A. A primary survey of investors
  • B. Fiscal data supplied by the Comptroller and Auditor General
  • C. The decennial Population Census
  • D. RBI banking-sector statistics

Q4. Which one of the following is one of the eight pillars of the Investment Friendliness Index 2026?

  • A. Environmental Resilience
  • B. Environmental Sustainability
  • C. Ecological Security
  • D. Social Infrastructure

Q5. The Investment Friendliness Index 2026 assessed how many States and Union Territories in total?

  • A. 36
  • B. 28
  • C. 17
  • D. 8

Q6. The SDG India Index and the Fiscal Health Index are both prepared and published by which one of the following institutions?

  • A. NITI Aayog
  • B. Ministry of Statistics and Programme Implementation
  • C. Fifteenth Finance Commission
  • D. Reserve Bank of India

Q7. In NITI Aayog's Fiscal Health Index 2023-24, the composite score is built from five sub-indices. Which one of the following is one of those sub-indices?

  • A. Debt Sustainability
  • B. Tax Buoyancy Index
  • C. Human Development Index
  • D. Revenue Deficit Ratio

Q8. Who serves as the ex-officio Chairperson of NITI Aayog?

  • A. The Prime Minister
  • B. The President of India
  • C. The Union Finance Minister
  • D. The Vice-Chairperson of NITI Aayog

Q9. With reference to instruments of Indian federalism, consider the following statements: 1. The Investment Friendliness Index promotes competitive federalism by ranking States, whereas the GST Council functions as a forum of cooperative federalism. 2. The GST Council is a constitutional body created by the 101st Constitutional Amendment Act. 3. The Investment Friendliness Index derives its authority from the same constitutional article as the Finance Commission. Which of the statements given above is/are correct?

  1. The Investment Friendliness Index promotes competitive federalism by ranking States, whereas the GST Council functions as a forum of cooperative federalism.
  2. The GST Council is a constitutional body created by the 101st Constitutional Amendment Act.
  3. The Investment Friendliness Index derives its authority from the same constitutional article as the Finance Commission.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 only
  • D. 1, 2 and 3

Q10. The Business Reform Action Plan (BRAP), under which States/UTs are assessed on ease-of-doing-business reforms, is implemented by which one of the following?

  • A. Department for Promotion of Industry and Internal Trade
  • B. NITI Aayog
  • C. Ministry of Corporate Affairs
  • D. Ministry of Micro, Small and Medium Enterprises