Introduction
Arunachal Pradesh is the largest among the seven states located in the northeast of India, with an area of 83,743 sq kms. It shares its borders with the neighboring 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. At current prices, Arunachal Pradesh’s GSDP is estimated to reach Rs. 37,870 crore (US$ 4.60 billion) in 2023-24.
The land is mostly mountainous with the Himalayan ranges. The state is divided into five river valleys - the Kameng, the Subansiri, the Siang, the Lohit, and the Tirap. These river valleys have immense hydropower potential, currently estimated at 50,328 megawatt (MW), or approximately 22% of India's current power generating capacity. As of April 2023, Arunachal Pradesh had a total installed power-generation capacity of 773.17 MW. 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. In 2018-19* total horticulture production reached 190.70 thousand metric tonnes (MT).
Some of the other key industries of the state include art and crafts, weaving, cane and bamboo, horticulture, power, and mineral based industry. The state and central Governments have both offered huge fiscal and policy incentives for the development of thrust sectors in the state. Some of these policies include Public Private Partnership Policy 2011, the State Industrial Policy 2008, and the Hydro Power Policy 2008.
Recent Developments in Key Sectors
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows to the northeast states totalled US$ 142 million between April 2000 and March 2021. The state attracted FDI inflow worth US$ 5.55 million between October 2019- March 2023.
- In 2022-23, construction of 2,000 km of road per year was announced by the State Government.
- As of August 31, 2022, Arunachal Pradesh had a total installed power-generation capacity of 772.76 MW. The state has significantly scaled up its capacity by capitalizing on its hydropower potential.
- According to the Telecom Regulatory Authority of India (TRAI), Arunachal Pradesh had 1.26 million wireless subscribers and 0.01 million wireline subscribers as of December 2022. The number of internet subscribers in Arunachal Pradesh stood at 0.78 million, as of December 2022. Arunachal Pradesh had a total tele-density of 82.26%, as of December 2022.
- In budget 2023-24, Chief Minister’s Comprehensive State Road Development Plan: Under this plan, 3,650 km of important roads which connect to areas such as: the Capital Complex, District Headquarters and state highways will be improved at a cost of US$ 24.33 million (Rs. 200 crore)
- Arunachal Pradesh has allocated 11.4% of its total expenditure towards roads and bridges, which is higher than the average allocation by states (4.5%).
- Under the state budget 2022-23, the state government has allocated Rs. 100 crore (US$ 12.58 million) each for Atmanirbhar Krishi Yojana (agriculture) and Atmanirbhar Bagwani Yojana (horticulture).
- In 2021-22 (as per advance estimates), the total horticulture production reached 193 thousand metric tonnes.
- Tourist arrivals in the state was recorded at 103,097 in 2021, with 102,915 domestic and 182 foreign visitors.
- In August 2021, Chief Minister Mr. Pema Khandu announced that the 2,396-kilometre-long Trans Arunachal Highway (TAH) connecting 16 districts in Arunachal Pradesh, is being constructed by four agencies—the state Public Works Department (PWD), Ministry of Road Transport and Highway (MoRTH), National Highway Infrastructure Development Corporation Ltd. (NHIDCL) and the Border Roads Organization (BRO).
- Agriculture and Forest-Based Industries: The state is largest producer of kiwis in India and the second largest producer of large cardamom. The state also has various inland fisheries resources.
- Textiles: Under the North East Region Textile Promotion Scheme’, 24 sericulture projects are being implemented in for holistic development of sericulture in the state. The projects have been approved for implementation from FY15-19 with a cost of Rs. 920.78 crore (US$ 127.4 million). Raw silk production in the state reached 59 MT in FY19 and 55 MT in FY20 (until January 2020). Government introduced a Gap-filling scheme in the Eri and Muga cultures worth Rs. 5 crore (US$ 676,568.00) under the state budget 2020-21 to tap potential and increase quality silk production in the state.
FACTFILE
Capital
ItanagarGeographical Area (sq km)
83,743State Language
Assamese, Bengali, Hindi and EnglishLiteracy Rate
65.38 per centKey Industries:
Arts and Crafts
Weaving
Cane and bamboo
Carpet weaving
Wood carving
Ornaments
Tourism and horticulture
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