Kohima: Nagaland sits at 27th place among 36 states and Union Territories in the latest NITI Aayog Investment Friendliness Index. The state holds an overall score of 41.2, placing it sixth out of 12 among North Eastern and hilly states. Uttarakhand leads that specific category, with Assam and Himachal Pradesh trailing behind.
Strong policy and regulatory reforms fueled the state's performance. Officials noted low crime rates, transparent land allotment, and simple construction permit procedures as major assets. The report added that the state’s Investment Promotion Agency works well. It specifically noted, "Nagaland’s performance was driven by high regulatory ease and a strong institutional environment, with notable strengths in government policy, regulatory reforms and governance."
Economic markers show promise. Between 2019 and 2024, the state maintained a 4.84% GSDP growth rate, edging past the 4.8% national average. Capital expenditure incentives hit 18% of total industrial capex, far outperforming the 11% national average. Female workforce participation also reached 59%, well above the 40% national figure.
Infrastructure remains the biggest hurdle. The report flagged a shortage of skilled workers and poor cargo capacity. It urged better rail connectivity and wider 4G and 5G coverage. Digital payment use needs a boost, as do water connection efficiencies. Experts suggested expanding the single-window clearance system to keep businesses from running between multiple offices.
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