Trade Analytics

Industrial Development & Economic Growth in Arunachal Pradesh

Latest update: October, 2016

Economic Snapshot: GSDP of Arunachal Pradesh

Arunachal Pradesh's gross state domestic product (GSDP) was US$ 2.57 billion over 2014-15.

Economic Snapshot: GSDP of Arunachal Pradesh

Economic Snapshot: NSDP of Arunachal Pradesh

Arunachal Pradesh's net state domestic product (NSDP) was US$ 2.07 billion over 2014-15.

Break up of outstanding investments in Arunachal Pradesh

October, 2016

Arunachal Pradesh is the largest among the seven states located in the Northeast of India. Currently the state's economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, pulses, sugarcane, ginger, oilseeds, cereals, potato, and pineapple. The state has considerable mineral reserves that offer huge potential. The state’s hydropower generation potential is estimated at 60,000 Megawatt (MW), or approximately 25 per cent of India’s current power generating capacity. As of June 2016, the installed hydropower generation capacity of the state was 97.57 MW.

The state’s diverse topography offers ample of opportunities for non-timber based industries such as bamboo, cane and medicinal plants. Horticulture has a vast potential, owing to good agro-climatic conditions and topography, for the development of varied varieties of fruits and vegetables.

Between 2004-05 and 2015-16, the Gross State Domestic Product (GSDP) increased at a Compound Annual Growth Rate (CAGR) of 12.98 per cent to US$ 2.98 billion whereas the Net State Domestic Product (NSDP) increased at a CAGR of 12.59 per cent to US$ 2.62 billion.

The resources, policy incentives and climate in the state support investments in mining and mineral products (including cement), tissue culture and floriculture, plantation crops (tea, rubber, etc.) and agro-based industries.

The state’s location provides opportunities for international trade with South Asian countries such as Myanmar, Bhutan and China. Textiles and handicrafts from the state are in demand in neighbouring countries.

The central government approved ‘North East Industrial and Investment Promotion Policy’ (NEIIPP), 2007 provides several incentives - incentive on business expansion, 100 per cent excise duty and income tax exemption, capital investment subsidy, interest subsidy and insurance premium reimbursement.

The Department of Industries has set up District Industries Centres (DICs) and Sub-District Industries Centres (Sub-DICs) for the industrial development of small scale, tiny and village industries.

Major initiatives taken by the government to promote Arunachal Pradesh as an investment destination are:

  • The State Industrial Policy, 2008, of Arunachal Pradesh lists mineral-based industries (such as ferro-alloys, cement plants, etc.) as thrust sectors. Arunachal State Mineral Policy, 2014 has been prepared on the basis of the objectives of the National Mineral Policy, 2008. Arunachal Mineral Development Fund shall be created in accordance with this policy for its utilisation towards mineral exploration and development of mining activities in the state.
  • The Government of Arunachal Pradesh plans to construct new roads and even connect the villages located at the India-China border. For the construction of this project, the Government approved an investment of US$ 555 million and the roads would cover a length of 2,098.40 km with 219 bridges.
  • The Chief Minister's Skill Development Programme helped in improving employability of educated unemployed youth in the state. Its main objective is to provide 100,000 jobs for unemployed youths during the 12th Five Year Plan. Under this initiative, Job Mela-cum-Skill Development Interview Rally is being organised at regular intervals.
  • The government has invited domestic power companies in the region to develop hydropower plants.
  • The Ministry of Environment and Forests (MoEF) granted pre-construction scoping clearances to over 50 projects under the EIA notification 2006. Final environmental clearance has been awarded to 13 projects.
  • The State Industrial Policy, 2008, provides incentives for developing tourism infrastructure, with a special focus on public-private partnerships in tour operations, hotels and resorts. The central government's Look East Policy is initiating tourism as a means to increase trade with other South East Asian countries.
  • Under the ‘Chief Minister’s Paryatan Vikaas Yojana’, a project has been launched to provide subsidised tourist cabs to educated unemployed youth across districts. For this, a provision of US$ 0.56 million was made during 2014-15. In 2015-16, foreign tourist arrivals in the state stood at 5,700.
Arunachal Pradesh State Presentation

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Arunachal Pradesh Map

Arunachal Pradesh

x IBEF : India Brand Equity Foundation