Jaipur, July 30 -- The Rajasthan government has projected the state as a leading investment destination after the latest NITI Aayog Investment Friendliness Index placed it among the country's best performing states on policy and regulatory reforms. However, a closer examination of official data flags several areas for improvement. While Rajasthan scores well on the policy framework, it is not among the index's five "Top Performer" states - Goa, Gujarat, Maharashtra, Odisha and Tamil Nadu. More importantly, the state ranks near the bottom on several structural indicators that shape long-term investor confidence. Among 17 major states, Rajasthan ranks 15th in financial health, 13th in institutional environment, 12th in infrastructure and 11th in per capita income. The report itself cautions that financial health is central to attracting investment, noting that high public debt, persistent fiscal deficits and rising interest liabilities can reduce a state's capacity to build infrastructure, extend incentives and maintain a stable business environment. It also flags Rajasthan's business climate as an area requiring attention. Limited bank credit to industries remains a concern, while the state's institutional environment - which covers governance, regulatory transparency, dispute resolution, labour relations, economic offences and cybercrime - continues to lag behind better-performing states. The contrast is not unique to Rajasthan. Madhya Pradesh and Chhattisgarh also perform well on policy and regulatory reforms but rank lower on key socio-economic indicators, including per capita income. Parliamentary data further underlines this gap. According to data tabled by the Union government, Rajasthan recorded 4,590 MSME closures during 2025-26, the fourth-highest in the country after Maharashtra (13,306), Tamil Nadu (6,130) and Gujarat (4,860). The figures raise questions about the business environment for existing enterprises despite improvements in policy. This data is particularly relevant because MSMEs accounted for 88% of respondents in the NITI Aayog Investment Friendliness Index survey, while only 12% were large corporates. Export performance also points to underlying challenges. According to the Centre's NIRYAT database, Rajasthan's exports declined from US$10.11 billion in 2023-24 to US$7.17 billion in 2024-25. The slowdown continued in 2025-26. Data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) shows exports during the October-December quarter stood at US$2.69 billion, down from US$3.02 billion in the corresponding quarter a year earlier, a decline of 10.85%. Despite tariffs imposed by the United States, major exporting states recorded export growth during the same period. HT tried to contact industries and commerce minister Col Rajyavardhan Singh Rathore but there was no response. Nesar Ahmad, founder-director, Budget Analysis and Research Centre (BARC) said, "There is often a gap between policy formulation on paper and its implementation on the ground. Only when this implementation gap is narrowed will the gap in economic growth indicators begin to close."...