Shillong | Meghalaya has emerged as the best-performing Northeastern state in regulatory ease, securing the highest score among the region’s states in NITI Aayog’s first-ever Investment Friendliness Index (IFI).

According to the report, Meghalaya scored 8.5 points under the Regulatory Ease pillar, outperforming all other Northeastern and hilly states assessed in the index. Nagaland and Tripura followed closely with 8.2 points each, while Himachal Pradesh recorded 7.9 points. Assam and Uttarakhand were placed next, both scoring 7.7 points.

The Regulatory Ease pillar measures how effectively state-level regulations support investment by evaluating the transparency, predictability and efficiency of administrative processes that businesses encounter while establishing and operating enterprises.

NITI Aayog’s assessment examines whether regulatory systems reduce barriers for investors and create a business-friendly environment capable of attracting domestic and external investment. Among the key indicators considered are the time required to establish a business, the number of statutory approvals and licences needed, procedures for industrial land allotment, and the speed of securing electricity and water connections.

The evaluation also looks at the efficiency of environmental clearances, the effectiveness of single-window clearance systems, investors’ perceptions of regulatory processes, the functioning of commercial courts and the ease with which businesses can exit or wind up operations.

According to the report, states with transparent and predictable regulatory frameworks are generally more attractive to investors because they reduce compliance burdens, minimise uncertainty and lower the costs and time involved in setting up and running businesses.

While Meghalaya topped the regulatory ease category among the Northeastern and hill states, the overall findings indicate that the state still has room to improve its broader investment ecosystem. In the overall Investment Friendliness Index, Meghalaya was placed in the “Emerging Performers” category, suggesting that progress in regulatory reforms has not yet been matched by advances in several other critical areas.

The report highlighted the need for Meghalaya to strengthen sectors such as physical infrastructure, business ecosystem development and resource availability to improve its overall competitiveness as an investment destination.

For Meghalaya, the ranking is a significant endorsement of recent governance and regulatory reforms aimed at improving the ease of doing business. The strong performance also reflects growing efforts by the state government to streamline administrative procedures and create a more investor-friendly environment.

The findings are expected to provide momentum for further reforms as Meghalaya seeks to attract greater private investment, generate employment opportunities and accelerate economic growth while positioning itself as an emerging investment destination in the Northeast.

Although Assam remains one of the region’s largest economies, Meghalaya’s higher score in regulatory ease highlights the increasing importance of administrative efficiency and investor-focused reforms in shaping investment competitiveness across the Northeast.