Why in News?
Meghalaya has been ranked the third most investment-friendly state in Northeast India in the inaugural Investment Friendliness Index (IFI) released by NITI Aayog.
Key Facts:
- Meghalaya’s score: 43
- Regional rank: 3rd in the Northeast
- Category: Emerging Performer
- 1st in NE: Assam — 47.3
- 2nd in NE: Tripura — 45
- National top three: Gujarat, Maharashtra and Tamil Nadu
The IFI assesses states across eight parameters: infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, financial health and environmental resilience.
The ranking highlights the importance of ease of doing business, investment climate, regulatory reforms and infrastructure in attracting domestic and foreign investment. However, the North-East continues to face challenges such as logistics bottlenecks, connectivity constraints, limited industrial infrastructure and a small domestic market. Strengthening transport networks, industrial parks, digital governance and grievance-redressal mechanisms can further improve investment prospects.
Practice MCQs
1. With reference to the Investment Friendliness Index, consider the following statements:
- Meghalaya was ranked third among the states of Northeast India.
- Meghalaya was placed in the category of “Emerging Performer”.
- The Index evaluates states on parameters including infrastructure, business climate and environmental resilience.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: D. 1, 2 and 3
2. What was Meghalaya’s score in the Investment Friendliness Index?
A. 40
B. 43
C. 45
D. 47.3
Answer: B. 43
3. Which of the following states ranked first among the Northeastern states in the Investment Friendliness Index?
A. Meghalaya
B. Tripura
C. Assam
D. Sikkim
Answer: C. Assam
4. Which of the following is NOT among the broad parameters assessed by the Investment Friendliness Index?
A. Infrastructure
B. Business climate
C. Environmental resilience
D. Population growth rate
Answer: D. Population growth rate
5. The Investment Friendliness Index is significant because it primarily assesses:
A. The agricultural productivity of states
B. The attractiveness of states for investment and business activity
C. The literacy rate of states
D. The performance of state universities
Answer: B. The attractiveness of states for investment and business activity