In Meghalaya the natural resources, policy incentives and infrastructure in the state favour investments in the tourism, manufacturing and mining sectors, hydroelectric power, horticulture, Mineral, electronics, IT, agro-processing and tourism have been identified as the thrust sectors for industrial development. The state has plentiful natural resources, which offer ample potentials for investment. Meghalaya is on the forefront of bamboo production in the country as about 14 per cent (3,108 square kilometers) of the state are covered by bamboo forests. Here are some of the major initiatives taken by the government of Meghalaya to promote investment are as bellow-

  • Under the annual budget 2015-16, an investment of US$ 0.29 million has been approved by the Meghalaya State Medicinal Plants Board with an aim to boost the production of medicinal plants.
  • The state government has also proposed an outlay of US$ 32.13 million to revamp the power supply in the state and associated services, power losses in urban areas, etc., under the Restructured Accelerated Power Development and Reforms Program.
  • Under the 12th Five Year Plan (2012-2017), the state has been assigned with forestation on clan/community land through Joint Forest Management Committees with an extensive thrust in the medicinal plants sector.
  • An investment of US$ 3.98 million was proposed to be invested for the development of roads and bridges in the state and US$ 54.66 million was proposed for the improvement of the agriculture sector of the state under the 12th Five Year Plan (2012-2017).
  • The state is concentrating on developing water harvesting and distribution infrastructure to increase the level of mechanization in the horticulture sector.
  • Hydroelectric power projects with a total capacity of 687 MW have been proposed to be set up in Meghalaya. All these projects are projected to be operational by 2016-17.
  • The state government is inviting investments in this area through the PPP mode. Independent power producers (IPPs) are also being invited to develop hydro projects in Meghalaya; this provides immense potential for investment.
  • Investment Potential

    Agro Based Industries

    Meghalaya has not able to touch the National Level in economic and agricultural growth rate until now. Even though 81% of the population relies on agriculture, the net-cropped area is only about 9.87% of the total geographical area of the State. The state face deficit in food grains by 1.22 lakh tones annually in order to meet the needs of population of 2.3 million. The cultivable wasteland of the state is 20.63% of the geographical area a part of which in the long run might be utilized for cultivation purpose. Solid Planning is required in fields like transport and communication, population dispersal pattern, adequate credit support, marketing system, etc. Besides, programs should be made on increasing agricultural/horticultural production and productivity.

    Mineral based Industry

    Meghalaya having wealth of mineral deposits possess huge industrial potential. The state is blessed with extensive deposits of coal, limestone, granite, clay and other minerals.


    Meghalaya’s climate is seasonable for cut flower production especially the areas near Shillong in East Khasi Hills District.


    Meghalaya enjoys geo-climatic conditions, which provide a perfect scope for growing of different types of horticultural crops containing fruits, vegetables, spices, plantation crops medicinal and aromatic plants of great economic values.


    Meghalaya’s fascinating tourism industry can be divided on three sectors:

    (i) Nature Tourism
    (ii) Adventure tourism
    (iii) Cultural and Socio-cultural Tourism (Fairs and Festivals).

    Other industries with investment potential in Meghalaya:
    1. Medicinal Plant (Taxus Baccata, Orchids & Floricultures)
    2. Leather Industry
    3. IT Industry
    4. Garbage Recycle
    5. Garments
    6. Fisheries.
    7. Wood based industry.
    8. Live Stock and Poultry
    9. Paper Industry
    10. Dairy & Milk Products