Assam ranks top among Northeast, 14th nationally in NITI Aayog Investment Friendliness Index
Guwahati, July 18
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.
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.
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.
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
Reader Comments
Finally some good news from Assam! As someone from Guwahati, I can see the changes - better roads, more industries coming up. But need to see if benefits reach small businesses too 😊
Good ranking but why is Assam still behind states like Gujarat and Maharashtra? We need to improve business climate and resources area. 6.4 in business climate is not enough. Hope CM focuses on simplification of processes.
The article says Assam spends 8% on roads vs national avg 3%. That's impressive! But single window clearance system needs to be more transparent. I know entrepreneurs struggling with delays. Let's hope the suggestions are implemented.
As a student from Assam, this is motivating! The state is improving steadily. But hope environmental resilience also gets attention - we have such rich biodiversity. Sustainable development should be priority 🌿
NITI Aayog ranking is good but ground reality? My friend tried to set up a factory, land allotment took months. Statistics don't always reflect experience. Still, happy to see Assam moving up - better than being last!
Impressive capex incentives! 5 times more than other hill
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