Guwahati: Assam was ranked the most investment-friendly state in the northeast and 14th nationally in India’s first Investment Friendliness Index, published on Friday.Guwahati: Assam was ranked the most investment-friendly state in the northeast and 14th nationally in India’s first Investment Friendliness Index, published on Friday.The index, prepared by NITI Aayog in collaboration with Crisil, credited Assam’s performance to its strong govt policy framework, favourable institutional environment and minimal labour disruptions, while noting that the state still needs to strengthen its business climate and resource base to compete with the country’s top investment destinations.Nationally, the top three states — Gujarat, Maharashtra and Tamil Nadu — derived their leadership from superior infrastructure, a stronger business climate, export performance, private investment inflows and regulatory efficiency, areas where Assam still has room for improvement despite its strong showing.Gujarat, as the country’s most investment-friendly state, scored 56.6, followed by Maharashtra (53.7) and Tamil Nadu (53.3). Assam secured an overall score of 47.3.The Index evaluates all 28 states and eight UTs and evaluates investment attractiveness across the eight pillars — infrastructure, business climate, resources, govt policy, regulatory ease, institutional environment, financial health and environmental resilience. These pillars collectively comprise 84 indicators across eight broad areas.Among the other northeastern states, Tripura ranked fourth in the hilly and northeastern category, driven by regulatory ease and a strong institutional environment, though the report flagged weaknesses in its business climate.Meghalaya, ranked fifth, scored highly on regulatory reforms and low crime, particularly in economic offences, but was found wanting in govt policy and business climate.Nagaland ranked sixth, benefiting from regulatory ease and institutional strength, but lagged in infrastructure and human resources.Mizoram, placed eighth, was recognised for sound financial health and institutional performance, although poor rail connectivity and the absence of an international airport were cited as major constraints.Arunachal Pradesh, ranked ninth, drew strength from environmental resilience and institutional performance but needs to improve its financial health and business climate.The conflict-hit Manipur was ranked the weakest performer in the region, ranking 11th among hilly and northeastern states and 33rd nationally, only above the bottom three UTs, A&N Islands, Ladakh and Lakshadweep.While the report acknowledged Manipur’s strong natural resource base, it said improvements in govt policy, financial health and, crucially, sociopolitical stability were essential to build investor confidence and support long-term economic growth.“Sociopolitical stability can be improved to create a more predictable environment for long-term investments. Greater consistency and stability in the sociopolitical landscape would help reinforce investor confidence and support sustained economic development,” the report said.
