Kohima: Nagaland holds the 27th spot out of 36 states and union territories in the NITI Aayog Investment Friendliness Index 2026. The state earned a score of 41.2 out of 100. It places sixth among the 12 northeastern and hilly states. This result puts Nagaland level with Bihar and just behind West Bengal and Jharkhand. Gujarat leads the nation with 56.6 points.
The state shines in administrative efficiency. It shows strength in government policy, regulatory ease, and institutional environment. NITI Aayog credits this to "consistent reform efforts and stable governance." Investors find land allotment and environmental clearances easier here than in similar regions. Businesses also close faster in Nagaland, which scored 10 points above the category average for exit speed.
Economic indicators remain mixed. Nagaland recorded a 4.84 percent GSDP growth rate from 2019 to 2024. This edged out the 4.8 percent national average. Capital expenditure incentives hit 18 percent of industrial capex. The national average is only 11 percent. Women also show strong economic engagement, with a 59 percent workforce participation rate. The national average sits at 40 percent.
Infrastructure problems drag down these gains. Dimapur Airport handles only 0.5 million passengers annually. Rail density trails six other regional peers. Digital connectivity remains a major hurdle. 4G and 5G base station density is 26 percent lower than the category average. Residents use digital payments at half the rate of other nearby states. The report marks human resources and core infrastructure as primary areas for improvement.
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