Assam Tops Northeast In Investment Index

Assam has emerged as the top-performing state in the Northeast region, ranking 14th nationally among 36 states and Union Territories, with an overall score of 47.3 in the NITI Aayog's Investment Friendliness Index (IFI).

The index, prepared by Crisil under NITI Aayog's Research Scheme, was released in New Delhi on July 17. According to the report, Assam's strong government policy, favourable institutional environment, and sound financial management contributed to its high ranking.

Assam was placed in the 'Frontrunners' category, just below the 'Top Performers' bracket, which requires a score above 50. In the separate category of hilly and northeastern states, Assam finished second with 47.3, narrowly behind Uttarakhand (47.5) and ahead of Himachal Pradesh.

The report highlighted Assam's key strengths, including sustained public investment in road infrastructure. The state allocated around 8 per cent of its annual expenditure to roads between 2019 and 2024, compared to the national average of about 3 per cent. Education spending was another area where Assam performed well, devoting an average of 18 per cent of its state budget to education during the same period.

However, the report noted that this had not yet translated into a strong technical workforce, with the addition of new technical workers remaining below the national average. On financial health, the report said interest payments accounted for 2.8 per cent of Assam's Gross State Domestic Product (GSDP), around 24 per cent lower than the comparable national figure.

Among other northeastern states, Tripura followed Assam with a score of 45.0, placing it in the Frontrunners bracket. Meghalaya (43.0) and Nagaland (41.2) were classified as 'Emerging Performers', while Mizoram (39.9), Arunachal Pradesh (37.5), Sikkim (36.6), and Manipur (32.3) were placed in the 'Aspiring States' category.

The Investment Friendliness Index is NITI Aayog's first exercise aimed at ranking states and Union Territories on their ability to create and sustain an environment conducive to investment. It evaluates 36 states and Union Territories across eight pillars, including infrastructure, regulatory ease, and human resources.

Chief Minister Himanta Biswa Sarma reacted to the ranking, saying that Assam had emerged as a 'Front Runner' in the index due to stable and industry-friendly policies, customised incentives, and improvements in law and order and infrastructure.

The ranking is significant for Assam, as it indicates the state's potential to attract investments and create a favourable business environment. With its strong government policy and favourable institutional environment, Assam is well-positioned to become a hub for investment in the Northeast region.

The report's findings are also relevant for other states in the region, as they highlight the importance of investing in infrastructure, education, and human resources to create a conducive environment for investment. As the Northeast region continues to grow and develop, the Investment Friendliness Index will play a crucial role in evaluating the progress of states and Union Territories in creating a favourable business environment.

In conclusion, Assam's ranking in the NITI Aayog's Investment Friendliness Index is a significant achievement, and it highlights the state's potential to become a major hub for investment in the Northeast region. With its strong government policy, favourable institutional environment, and sound financial management, Assam is well-positioned to attract investments and create a favourable business environment.