UPSC Prelims Practice Questions — NITI Aayog released a report on “Investment Friendliness Index”

Q1. NITI Aayog's Investment Friendliness Index is notable as the first Indian index to do which one of the following?

  • A. Rank States and Union Territories specifically on their ability to attract, enable and sustain investment
  • B. Rank States on the implementation of ease-of-doing-business reforms
  • C. Rank States on logistics efficiency across the country
  • D. Rank States on their fiscal prudence and debt sustainability

Q2. With reference to the Investment Friendliness Index report, which of the following are correctly identified?

  1. It was released by NITI Aayog's Vice Chairman, Dr. Ashok Kumar Lahiri.
  2. It is titled 'Strengthening India's Investment Ecosystem: States at the Core of India's Growth Story'.
  3. It ranked all 28 States but excluded the 8 Union Territories from scoring.
  4. It scored States and Union Territories on 84 indicators.
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 3 and 4 only
  • D. 2, 3 and 4

Q3. In the Investment Friendliness Index, States classified as 'Top Performers' are precisely those that:

  • A. scored above 50 out of 100
  • B. scored between 45 and 50 out of 100
  • C. scored between 40 and 45 out of 100
  • D. scored below 40 out of 100

Q4. The 'Investment-Friendly Charter', which the Prime Minister directed NITI Aayog to prepare, is best described as:

  • A. a compilation of policies, programmes and processes to help States attract investment
  • B. a legally binding agreement that every State must sign to receive central investment funds
  • C. a constitutional amendment mandating fixed investment targets for all States
  • D. a single-window clearance portal operated exclusively by the Union Government

Q5. The mandate to prepare an Investment-Friendly Charter originated first at which single forum?

  • A. The 9th Governing Council Meeting of NITI Aayog (July 2024)
  • B. The 8th Governing Council Meeting of NITI Aayog
  • C. A meeting of the Inter-State Council
  • D. The pre-Budget consultation of State Finance Ministers

Q6. The Investment Friendliness Index was developed by the Ministry of Finance in consultation with NITI Aayog and which other body?

  • A. Department for Promotion of Industry and Internal Trade (DPIIT)
  • B. Department of Economic Affairs
  • C. Ministry of Corporate Affairs
  • D. Reserve Bank of India

Q7. Which one of the following is one of the eight pillars on which States are scored in the Investment Friendliness Index?

  • A. Environmental Resilience
  • B. Human Capital
  • C. Debt Sustainability
  • D. Quality of Expenditure

Q8. Which one of the following NITI Aayog indices is the first-ever data-driven index to rank States and UTs specifically on investment attractiveness?

  • A. Investment Friendliness Index
  • B. India Innovation Index
  • C. Fiscal Health Index
  • D. Export Competitiveness Index

Q9. NITI Aayog's Fiscal Health Index, distinct from the Investment Friendliness Index, assesses States on which of the following?

  • A. The fiscal performance of 18 major States across five sub-indices such as debt sustainability and quality of expenditure
  • B. The investment attractiveness of 36 States and UTs across eight pillars
  • C. The logistics efficiency of States across the country
  • D. The implementation of ease-of-doing-business reforms by States

Q10. NITI Aayog, which released the Investment Friendliness Index, was constituted in which year, replacing which body?

  • A. 2015, replacing the Planning Commission
  • B. 2014, replacing the Planning Commission
  • C. 2015, replacing the Finance Commission
  • D. 2016, replacing the National Development Council

Q11. The Investment Friendliness Index is tied to the 'Viksit Bharat' vision of India becoming a developed nation by 2047; measured from independence in 1947, this target marks the completion of how many years of independence?

  • A. 100 years
  • B. 75 years
  • C. 90 years
  • D. 80 years