Assam has ranked second among northeastern and hilly states and 14th overall in the NITI Aayog Investment Friendliness Index. The state topped the NE states with a score of 47.3, driven by strong government policies and infrastructure improvements.
Assam has emerged as a front-runner in the NITI Aayog Investment Friendliness Index, ranking second among the northeastern and hilly states and 14th overall among 36 states and Union Territories, according to the report released by the government think tank.
With an overall score of 47.3, Assam secured the top position among the northeastern states, driven by strong government policies, a favourable institutional environment, and sustained improvements in infrastructure and law and order.
CM Sarma Hails ‘Investment-Friendly Ecosystem’
Reacting to the achievement, Assam Chief Minister Himanta Biswa Sarma said the state’s investment-friendly ecosystem had strengthened significantly in recent years. “Backed by stable, industry-friendly policies, customised incentives, and major improvements in law & order and infrastructure, Assam has emerged as a frontrunner in the NITI Aayog Investment Friendliness Index. Come, Invest in Assam,” Sarma said in a post on X.
Index Rankings and Performance Breakdown
According to the report, Gujarat topped the national rankings with a score of 56.6, followed by Maharashtra (53.7), Tamil Nadu (53.3), Goa (53.1), and Odisha (52.4).
The report said Assam’s performance was largely driven by its strong government policy framework and institutional environment, while noting that the state has scope for improvement in the business climate and resources pillars.
Assam scored 10.7 in the Infrastructure pillar, 7.7 in Regulatory Ease, 6.4 in Business Climate, 5.3 in Resources, 4.9 in Government Policy, 4.8 in Financial Health, 4.0 in Institutional Environment and 3.5 in Environment Resilience.
Key Drivers and Recommendations
The report attributed the state’s strong policy performance to significant capital expenditure incentives, noting that industrial capex incentives disbursed in fiscal 2024 were nearly five times the average for hilly and northeastern states.
It also highlighted Assam’s investment in road infrastructure, with the state allocating an average of eight per cent of its annual expenditure to roads between fiscals 2019 and 2024, compared to the national average of three per cent.
The NITI Aayog further observed that Assam’s policy framework offers attractive incentives for new and expanding industries, while regulatory processes such as land allotment, environmental clearances and construction permits are transparent and efficient. However, it suggested further strengthening the state’s single-window clearance system by improving digital responsiveness and streamlining approval processes to make investment facilitation more seamless. (ANI)
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