The neutral light circuit is powered up all the time - that is, +12v applied to bulb, then from bulb down to the neutral switch near the front sprocket. When the transmission shifter drum spins around to neutral, the switch connects to ground, completing the circuit and lighting the light.
So, no bad ground wires in this case, but certainly could have bad connections anywhere from the +12v supply to bulb (inside the headlight shell) to the wires that go downstairs, to the connection at the switch, to the switch itself not making good ground on the transmission shift drum.
Start with checking all connections.
Good luck with it all,
Kirk