Shillong: Meghalaya has secured the top position among the Northeastern and hilly states in the regulatory ease category of NITI Aayog’s inaugural Investment Friendliness Index (IFI), reflecting the state’s progress in simplifying regulations and improving the business environment for investors, officials said on Saturday.
The official stated that according to the report released by NITI Aayog, Meghalaya scored 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 scored 7.9. Assam and Uttarakhand shared the next position with 7.7 points.
The Regulatory Ease pillar assesses how effectively state-level regulations facilitate investments by examining the transparency, predictability and efficiency of administrative processes.
The index evaluates the extent to which regulatory frameworks reduce barriers for businesses and create a conducive investment climate.
The assessment takes into account several parameters, including the time required to establish a business, the number of statutory approvals and licences needed, the speed of obtaining electricity and water connections, industrial land allotment procedures and the efficiency of environmental clearances, officials added.
It also measures the effectiveness of single-window clearance mechanisms, investors’ perception of regulatory processes, the functioning of commercial courts and the time taken for businesses to exit or wind up operations.
According to NITI Aayog, states that offer transparent and predictable regulatory systems are better placed to attract investments as they reduce compliance burdens, minimise uncertainty and lower the overall cost and time involved in setting up and operating businesses.
While Meghalaya emerged as the leading state in regulatory ease among the Northeastern and hilly states, it was placed in the “Emerging Performers” category in the overall Investment Friendliness Index, indicating that there is scope for further improvement in other key areas.
The report noted that the state would need to strengthen its performance in areas such as physical infrastructure, business ecosystem and resource availability to enhance its overall investment competitiveness.
The findings underscore Meghalaya’s recent efforts to improve governance and streamline approval processes, with the regulatory reforms expected to encourage greater private investment and support long-term economic development in the state.
(IANS)
