Arunachal Pradesh is located in the Northeast of India. It shares its borders with the neighbouring countries of Bhutan in the west, China (Tibet) in the north and northeast, Myanmar in the east and southeast and the Indian states of Assam and Nagaland in the south. The geographic location of the state provides immense opportunities for international trade with South Asian countries such as Myanmar, Bhutan and China. The state has also received approval for the first border ‘haat’ along the Indo-Myanmar border.
The hilly terrain and abundant rivers make the state a potential powerhouse of the Northeast. The state’s hydropower potential is currently estimated at 57,000 megawatt (MW) or approximately 26 per cent of India’s current power generating capacity.
The gross state domestic product (GSDP) of Arunachal Pradesh increased at a compound annual growth rate (CAGR) of 16.6 per cent between 2004-05 and 2012-13, faster than India’s total GDP growth of 15.6 per cent.
Arunachal Pradesh is home to 601 species of orchids or 52 per cent of the species of orchids known in India, indicating a huge potential for attracting tourists, especially foreign tourists.
The state’s textile industry, including carpet making, enjoys a huge appeal. On account of the creativity, the state’s carpets have received national and international fame for their design and quality.
Both the state and central governments offer huge fiscal and policy incentives for the development of thrust sectors. The State Industrial Policy, 2008, and Agriculture Policy 2001 support these activities. Additionally, the central government’s North East Industrial and Investment Promotion Policy (NEIIPP), 2007, promotes investment in the state.