Meghalaya Tops NITI Aayog's Investment Friendliness Index in Regulatory Ease
Meghalaya Achieves Top Rank in Regulatory Ease
File image of Meghalaya's Shillong (Photo: @mpparimal/X)
Shillong, July 19: In a significant achievement, Meghalaya has been recognized as the leading state among Northeastern and hilly regions in the regulatory ease category of NITI Aayog's first-ever Investment Friendliness Index (IFI).
The report published by NITI Aayog indicates that Meghalaya attained a score of 8.5 in the regulatory ease dimension, the highest in the region.
Following Meghalaya, Nagaland and Tripura both scored 8.2, while Himachal Pradesh received a score of 7.9. Assam and Uttarakhand were next, each with 7.7 points.
The Regulatory Ease component evaluates how well state regulations support investments by analyzing the transparency, predictability, and efficiency of administrative processes.
This index measures how regulatory frameworks can lower barriers for businesses and foster a favorable investment environment.
Several factors are considered in this assessment, including the duration required to start a business, the number of necessary statutory approvals and licenses, the speed of securing electricity and water connections, procedures for industrial land allotment, and the efficiency of environmental clearances, as noted by officials.
Additionally, it evaluates the effectiveness of single-window clearance systems, investor perceptions of regulatory processes, the operation of commercial courts, and the time taken for businesses to exit or cease operations.
NITI Aayog emphasizes that states with transparent and predictable regulatory frameworks are more likely to attract investments, as they alleviate compliance burdens, reduce uncertainty, and lower the overall costs and time associated with establishing and running businesses.
While Meghalaya has excelled in regulatory ease among Northeastern and hilly states, it has been categorized as an "Emerging Performer" in the overall Investment Friendliness Index, suggesting that there is room for enhancement in other critical areas.
The report highlights that the state must bolster its performance in aspects such as physical infrastructure, business ecosystem, and resource availability to improve its overall investment competitiveness.