Panjab Ranks 22nd in Investment Friendliness Index; MGNREGA Workers Baton-charged

July

2026

The NITI Aayog's Investment Friendliness Index 2026 has ranked Panjab 22^nd overall and 14^thamong large states. The state scored 44.7. Haryana ranked 15^th overall, Chandigarh 16^th and Himachal Pradesh 17^th. While Panjab performed strongly in institutional environment (72%), environmental resilience (69%), and regulatory ease (67%), its lower scores in government policy (20%), resources (32%), and financial health (42%) weighed down its overall ranking. The state scored 48% in infrastructure and 36% in business climate. According to the report released on 17 Jul, Panjab's strengths include its rail infrastructure and institutional environment, but the state has scope to improve its financial health due to high outstanding liabilities. The opposition, however, attacked the ruling Aam Aadmi Party (AAP) government, labeling the report as ‘hollow claims’, ‘drama’ and ‘false promise’. The Bharatiya Janata Party (BJP), Shiromani Akali Dal, and the Indian National Congress alleged that the state's performance exposed the gap between the government's investment claims and the ground reality. Panjab BJP president Kewal Singh Dhillon said the rankings exposed what he described as the ‘hollow claims’ of the AAP government. He alleged that despite investment summits, Memorandum of Understanding worth billions, and extensive publicity campaigns, the government failed to create an investor-friendly ecosystem and restore investor confidence. Meanwhile, the Panjab government transferred USD 13.71M directly into the bank accounts of nearly 3.3 M women under the Mukh Mantri Mawan Dheeyan Satkar Yojana (welfare scheme for women), providing financial assistance through the Direct Benefit Transfer mechanism. The government said registrations remain open, with more than 6.6 M women enrolled under the scheme so far. Additionally, a protest by Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) employees demanding regularization of their services and release of eight months’ pending salaries turned violent in Khanna, Ludhiana district on 15 Jul, when police baton-charged, tear gassed, and water cannoned demonstrators marching towards the residence of Panjab Rural Development and Panchayat Minister Tarunpreet Singh Sond’s residence in Khanna. Ten protestors suffered injuries in the police action and were admitted to the Khanna Civil Hospital and private hospitals. AAP government’s reversal and implementation of the Viksit Bharat Guarantee for Rozgar and Aajeevika Mission-Gramin has snowballed into a political controversy amid an indefinite strike by 2,100 MGNREGA workers and arrests of union leaders (earlier coverage).