The natural resources, policy incentives and infrastructure in the state favour investments in the tourism, hydroelectric power, manufacturing and mining sectors.
Mineral, horticulture, electronics, IT, export oriented units and tourism have been identified as the thrust sectors for industrial development.
As of 2010-11, there were 94 operational factories in the state.
Some of the major initiatives taken by the government to promote Meghalaya as an investment destination are:
- A total of US$ 0.1 million was set aside under the Annual Plan 2013-14 for the development of medicinal plants in the Northeast. The funds would also be used for the preservation, promotion and conservation of herbal and aromatic as well as indigenous wild edible plants of Meghalaya.
- Under the 12th Five Year Plan (2012-2017), the state has been assigned with development works including afforestation on clan/ community land through Joint Forest Management Committees with a major push in the medicinal plants sector.
- The state is focusing on developing water harvesting and distribution infrastructure to increase the level of mechanisation in the horticulture sector.
- 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.
- In order to promote tourism, the Ministry of Tourism has organised the third annual International Travel Mart at Shillong, Meghalaya in October 2014.