Guwahati: Meghalaya has emerged as the top-performing Northeastern and hilly state in the regulatory ease category of NITI Aayog’s first-ever Investment Friendliness Index (IFI), reflecting the state’s progress in creating a more business-friendly regulatory environment.
The report awarded Meghalaya a score of 8.5 under the Regulatory Ease pillar, the highest among the region’s states. Nagaland and Tripura followed with 8.2 each, while Himachal Pradesh secured 7.9. Assam and Uttarakhand shared the next position with 7.7 points.
The Regulatory Ease pillar measures how effectively state regulations support investments by evaluating the transparency, consistency and efficiency of administrative systems. It assesses whether businesses can establish and operate with fewer procedural hurdles and greater certainty.
According to the report, the evaluation covers several aspects of the investment process, including the time required to start a business, the number of approvals and licences needed, the speed of obtaining electricity and water connections, procedures for industrial land allotment and the efficiency of environmental clearances.
The index also examines the effectiveness of single-window clearance systems, investors’ experience with regulatory processes, the functioning of commercial courts and the time required to wind up or exit a business.
NITI Aayog noted that states with transparent, predictable and efficient regulatory frameworks are better positioned to attract investment, as such systems reduce compliance costs, minimise delays and improve the overall ease of doing business.
Despite leading the region in regulatory ease, Meghalaya was placed in the ‘Emerging Performers’ category in the overall Investment Friendliness Index. The report indicated that the state can improve its overall ranking by strengthening areas such as physical infrastructure, the business ecosystem, and the availability of key resources needed to support investment and industrial growth.