Meghalaya has secured the top position among Northeastern and hilly regions in the regulatory ease category of NITI Aayog’s first-ever Investment Friendliness Index (IFI). The state achieved a score of 8.5 out of 10 under the Regulatory Ease pillar, highlighting its investor-friendly policy environment and efficient regulatory processes.
According to the report, Nagaland and Tripura followed Meghalaya with scores of 8.2 each, while Himachal Pradesh secured 7.9 points. Assam and Uttarakhand shared the next position with a score of 7.7.
The Regulatory Ease pillar evaluates how state-level regulations impact investment decisions by assessing factors such as transparency, predictability, compliance requirements and investors’ experience with government processes. The assessment includes parameters such as the time required to start a business, the number of approvals and licences needed, efficiency in obtaining electricity and water connections, industrial land allotment procedures, environmental clearances and the effectiveness of single-window clearance systems.
The index also considers investor feedback, the functioning of commercial courts and the ease of business exit or closure. NITI Aayog stated that states with simplified and predictable regulatory frameworks can reduce uncertainty, lower business costs and attract greater investment.
While Meghalaya has emerged as a regional leader in regulatory ease, it has been placed in the “Emerging Performers” category in the overall Investment Friendliness Index. The report noted that the state needs further improvement in areas such as infrastructure, business climate and resource availability to enhance its overall investment competitiveness.