"This index will be based on robust economic parameters that will reflect the true strength of corporate sector," Moily said at a function organised by the Institute of Company Secretaries of India.
The minister also noted that, in the recent past, there has been a lot of pessimism in the industry.
The proposal comes against the backdrop of rising concerns among the investor community over the overall investment climate in the country.
Moily said the Ministry of Corporate Affairs would be coming out with sustainability reporting framework for companies in a "couple of weeks".
The minister also said radical solutions on a massive scale are needed to tackle social and economical problem.
Regarding the new Companies Bill, 2011, Moily said, he hopes to pass the bill in the next session of Parliament.
The bill is aimed at having good regulatory environment for sustainable and inclusive growth.