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The third iteration of the NITI Aayog's India Innovation Index, which rates the states and the union territories on their innovation performance, placed Karnataka, Manipur, and Chandigarh at the top. In the presence of Dr. VK Saraswat, CEO Parameswaran Iyer, and senior advisor Neeraj Sinha from the apex public policy think tank, NITI Aayog Vice Chairman Suman Bery released the India Innovation Index 2021.

In the category for "Major States," Karnataka came out on top, whereas in the category for "North East and Hill States," Manipur took first place. In the category of "Union Territories and City States," Chandigarh came out on top. The research claims that Karnataka's high ranking can be attributable to its exceptional success in luring FDI and a significant number of venture capital deals. Delhi topped the business environment and investment pillars, while Chandigarh topped the knowledge worker pillar.