Correspondent
Shillong, Jul 19: Meghalaya achieved the top spot among all the Northeastern and hilly regions in the regulatory ease category of NITI Aayog’s first-ever Investment Friendliness Index (IFI). According to the report released by NITI Aayog, Meghalaya secured a score of 8.5 out of 10 under the Regulatory Ease pillar.
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 state-level regulations influence investment decisions by assessing compliance requirements, transparency, predictability and investors’ perception of the regulatory environment.
It evaluates factors such as the time taken to start a business, the number of licences required, the efficiency of approvals for electricity and water connections, industrial land allotment, environmental clearances and the effectiveness of single-window systems.
The assessment considers multiple indicators, including the time taken to establish a business, the number of approvals and licences required, the efficiency of securing electricity and water connections, industrial land allotment procedures, and the speed of environmental clearances.
It also reviews the effectiveness of single-window clearance systems, investor feedback on regulatory processes, the functioning of commercial courts, and the time required for businesses to exit or wind up operations.
The Investment Friendliness Index also considers investor feedback on regulatory processes, the efficiency of commercial courts and the time required to exit businesses. It also seeks to foster competitive and cooperative federalism by encouraging States and Union Territories to adopt best practices and undertake continuous reforms in pursuit of the vision of Viksit Bharat @2047.
NITI Aayog said states with streamlined and predictable regulatory systems reduce uncertainty and lower the time and cost of doing business, making them more attractive destinations for investment.
Despite leading the region in regulatory ease, Meghalaya has been placed in the “Emerging Performers” category in the overall Investment Friendliness Index, indicating that the state has room to improve in other critical areas.
However, the report stated that Meghalaya needs to strengthen other areas, including infrastructure, business climate and resources, to improve its overall investment competitiveness.