With reference to the Investment Friendliness Index (IFI), consider the following statements: The Investment Friendliness Index (IFI) is released by NITI Aayog to assess the investment ecosystem of States and Union Territories. The Foreign Direct Investment (FDI) inflows received by the states during the financial year makes the highest weightage in Index. Which of the statements given above is/are correct? |ForumIAS

Q. With reference to the Investment Friendliness Index (IFI), consider the following statements: The Investment Friendliness Index (IFI) is released by NITI Aayog to assess the investment ecosystem of States and Union Territories. The Foreign Direct Investment (FDI) inflows received by the states during the financial year makes the highest weightage in Index.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation: 1 only

Statement 1 is correct: The Investment Friendliness Index (IFI) is released by NITI Aayog to benchmark the investment attractiveness of States and Union Territories and encourage competitive and cooperative federalism.

Statement 2 is incorrect: The FDI inflows do not have the highest weightage in the index. It uses a multi-dimensional framework covering Infrastructure, Business Climate, Resources, Government Policy, Regulatory Ease, Institutional Environment, Financial Health, and Environmental Resilience, among other indicators, to comprehensively assess investment friendliness.

Source: PIB

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