The
Economist Intelligence Unit (EIU) has released its
Business Environment Rankings for 2025–2029, offering a global and regional perspective on where countries—and in some cases, sub-national regions—stand in terms of economic competitiveness, ease of doing business, and investor-friendly policies. Notably,
India ranks among the fastest-improving nations, while
Tamil Nadu emerges as the
top Indian state for business environment during this forecast period.
Global Business Environment Rankings: 2025–2029
According to the EIU report,
Singapore retains its position as the best place to do business globally, a title it has held since 2007. The ranking evaluates 82 countries based on 91 indicators across 11 key criteria, including macroeconomic conditions, infrastructure, political environment, tax policy, market opportunities, and more.
Top 10 Countries in Business Environment Rankings:
| Rank |
Country |
| 1 |
Singapore |
| 2 |
Denmark |
| 3 |
United States |
| 4 |
Germany |
| 5 |
Switzerland |
| 6 |
Canada |
| 7 |
Sweden |
| 8 |
New Zealand |
| 9 |
Hong Kong |
| 10 |
Finland |
Fastest-Improving Countries (2025–2029 vs 2019–2023):
| Rank |
Country |
Improvement Score |
| 1 |
Greece |
+1.38 |
| 2 |
Argentina |
+1.32 |
| 3 |
India |
+1.08 |
| 4 |
Angola |
+0.96 |
| 5 |
Qatar |
+0.91 |
India’s significant improvement is attributed to sustained
economic reforms,
infrastructure development, and a
youthful, tech-savvy population, making it a strong alternative to China for global manufacturing and supply chain diversification.
🇮🇳 India’s National Outlook: 2025–2029
India is recognized as
one of the top 3 fastest-improving nations in terms of business environment, driven by:
- Streamlined Foreign Direct Investment (FDI) policies
- Tax structure reforms (e.g., GST implementation)
- Digitization of government services
- Massive infrastructure investments under PM Gati Shakti
- Demographic advantage: Young and skilled workforce
These developments are expected to attract
higher investment, boost
GDP per capita, and encourage
global businesses to set up operations in India.
State-wise Business Environment Ranking (India): Tamil Nadu Leads
While the EIU report primarily covers countries, it gave
special recognition to Indian states, especially
Tamil Nadu, based on industrial growth, FDI inflow, and governance.
Top Performer: Tamil Nadu
- Ranking Category: Achievers
- Score: 7.4 out of 10
- Highlights:
- One of the most industrialized states in India
- Strong in sectors like automobile, electronics, textiles, and renewable energy
- High literacy rate and skill development initiatives
- Proactive policies promoting women’s employment and inclusive growth
- Stable political environment and policy continuity
EIU’s Recognition
The EIU cited Tamil Nadu’s
diverse economy,
investor-friendly climate, and
inclusive development model as key reasons behind its leadership position. It also emphasized the state’s
focus on green energy and sustainable growth, attracting global companies across sectors.
Other Notable States in India (Based on Ease of Doing Business)
While EIU data is limited to Tamil Nadu, earlier
Business Reforms Action Plan (BRAP) rankings and other national metrics spotlight several high-performing states:
| State |
Key Strengths |
| Andhra Pradesh |
Seamless online approvals, port infrastructure |
| Gujarat |
Strong MSME base, industrial corridors |
| Maharashtra |
Financial hub, infrastructure projects |
| Karnataka |
IT and R&D powerhouse |
| Telangana |
Startup-friendly, innovation-focused |
| Kerala |
Skilled workforce, high HDI |
These states continue to rank high in national-level
ease of doing business indices and are frequently selected by both domestic and international investors.
Key Insights
- India is rising as a global business destination, gaining recognition for reforms and youth-centric growth.
- Tamil Nadu is the national leader in business environment and governance quality.
- Global investors should take note of India’s evolving regulatory landscape and digital transformation initiatives.
- The next wave of industrialization in India is expected to come from states with inclusive policies, strong infrastructure, and stable governance.
Conclusion
The EIU’s Business Environment Rankings for 2025–2029 reinforce
India’s emergence as a major business hub, especially with Tamil Nadu setting the benchmark among Indian states. The country’s consistent policy reforms, infrastructural development, and strategic positioning in global supply chains are unlocking new growth avenues across sectors.
As India positions itself for sustained economic leadership,
regional competitiveness—led by states like Tamil Nadu—will be a key driver of its future.
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