Lack of int’l airport keeps M’laya at 23rd rank in Investment Friendliness Index

SHILLONG, July 17: Meghalaya has been ranked 23rd among 36 states and Union Territories in the NITI Aayog’s Investment Friendliness Index 2026, scoring 43 out of 100. The report, released on Friday, places the state fifth among the 12 hilly and northeastern states and in the “emerging performers” category.
One of the primary reasons for the modest ranking is the continued absence of an airport with international operations. Investors have identified poor air connectivity as a clear constraint that limits the state’s ability to attract larger investments and improve logistics, despite other positives.
As per the report, Meghalaya’s per capita income stands at Rs 95,525. The overall score is driven mainly by strong performance in regulatory ease and the institutional environment. Investors reported high satisfaction with single-window clearances, environmental approvals, construction permits and utility connections, supported by the Meghalaya Industrial and Investment Promotion Policy 2024.
The state also fares well on environment resilience, with no cities in high seismic zones, relatively low cyclone exposure and better-than-average air quality. Reliable power supply along with good highway and digital infrastructure further strengthen its position.
However, business climate and government policy remain the weakest pillars. GSDP growth averaged only about 3.6 per cent over the past five years, well below the cross-state average of 4.8 per cent. Banking penetration is limited, with just 13 active commercial bank branches per lakh population against the category average of 19. Exports have stayed modest at 9 to 11 million dollars annually, largely restricted to agricultural products, while FDI equity flows remain minimal compared with the category average.
Beyond the lack of an international airport, investors have also pointed to the need for better internal road conditions, upgraded industrial park infrastructure, stronger logistics and supply-chain systems, more efficient single-window processes, and improved grievance redressal mechanisms.
Among northeastern and hilly states, Meghalaya trails Uttarakhand (47.5), Assam (47.3), Himachal Pradesh (46.1) and Tripura (45.0), but leads Nagaland, Jammu and Kashmir and several others. The report presents these findings as a clear roadmap.
By addressing the gaps in growth momentum, financial depth, export performance and connectivity—especially air connectivity—while building on existing regulatory and institutional strengths, Meghalaya can improve its investment attractiveness in the years ahead, the report added.