Arunachal Pradesh is the largest among the eight North-Eastern states of India. The state's geographic location provides immense business opportunities for international trade with South Asian countries.
Arunachal Pradesh is the largest among the seven states located in the northeast of India with an area of 83,743 sq kms. The state's economy is 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 enormous potential. The state’s hydropower generation potential is estimated at 46,850.17 Megawatt (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.
At current prices, Arunachal Pradesh’s GSDP is estimated to reach Rs. 37,870 crore (US$ 4.60 billion) in 2023-24.
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 Asian countries such as Myanmar, Bhutan, and China. Textiles and handicrafts from the state are in demand in neighboring countries.
The Central Government approved North-East Industrial Development Scheme 2017 to promote industrialisation in the states in the northeast region and to improve productivity in Government departments through computerisation.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the state attracted FDI inflow worth US$ 5.55 million between October 2019 and June 2023.
The Department of Industries has set up District Industries Centre’s (DICs) and Sub-District Industries Centre’s (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:
Secretary (Power) Government of India, Mr. Sanjiv Nandan Sahai visited Changlang district of Arunachal Pradesh to review development of mini and micro-hydro projects in the district.
Jal Jeevan Mission scheme for providing water supply to Mimey village of Arunachal Pradesh, has been approved by the State Level Scheme Sanctioning Committee (SLSSC) and is expected to be completed by March 2021.
Raksha Mantri, Mr Rajnath Singh dedicated 44 major permanent bridges, to provide better connectivity to remote areas across seven states and union territories. He also laid the Foundation Stone for Nechiphu Tunnel in Arunachal Pradesh.