Assam Leads Northeast in NITI Aayog Investment Ranking

Photo Courtesy: nenow

Guwahati: Assam has seized the top spot among northeastern states in the first Investment Friendliness Index released by NITI Aayog. The state earned a place among national Frontrunners, finishing 14th overall with a score of 47.3. It sits just behind Uttarakhand, which holds a 47.5 rating.

Assam's success stems from stable government policies and tight fiscal controls. Interest payments consumed only 2.8 percent of its Gross State Domestic Product, a figure 24 percent lower than the regional average. The state spent heavily on growth. Capital expenditure incentives hit nearly five times the average for hilly states in 2024. Road investment also stayed high, claiming 8 percent of annual spending between 2019 and 2024. This dwarfs the national 3 percent average.

Education remains a major focus, with the state dedicating 18 percent of its budget to the sector. Despite this, NITI Aayog noted that "the addition of new technical workers remaining below the national average." Officials point to steady policies and few labor disputes as primary draws for new investors.

Other states received mixed results. Tripura joined Assam in the Frontrunners category with a 45.0 score. Meghalaya and Nagaland earned Emerging Performers status. Mizoram, Arunachal Pradesh, Sikkim, and Manipur landed in the Aspiring States category. Nationally, Odisha, Maharashtra, Gujarat, Tamil Nadu, and Goa claimed the Top Performers title.

NITI Aayog highlighted ongoing regional hurdles like small domestic markets and logistics bottlenecks. The report suggests states build better industrial parks and digital governance to reach the Viksit Bharat 2047 vision.

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