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Industrial Development & Economic Growth in Arunachal Pradesh

Latest update: March, 2020

Economic Snapshot
Per capita Income


March, 2020

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 50,328 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.

Between 2011-12 and 2019-20, the Gross State Domestic Product (GSDP) increased at a Compound Annual Growth Rate (CAGR) of 12.33 per cent to Rs 293.51 billion (US$ 4.19 billion) whereas the per capita GSDP increased at a CAGR of 11.79 per cent to Rs 154,229 (US$ 2,393).

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 neighboring countries.

The central government approved North East Industrial Development Scheme 2017, to promote industrialization in the states in the North Eastern Region and to improve productivity in government departments through computerisation.

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:

  • Ministry of Power had launched two new schemes, Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) which electrified all the villages and Saubhagya will target to energies approximately 43,520 households in the state.
  • As per the state budget 2019, Government allocated Rs 35 crore (US$ 5.01 million) for the plan to procure trucks, JCBs, other sanitation equipment's, acquire landfill sites etc. under the Urban Development sector also propose to allocate Rs 15 Crore (US$ 2.15 million) to Urban Development Department.
  • Tomo Riba Institute of Health & Medical Sciences (TRIHMS) which is the first medical college in the state was made operationalised and college received its first batch of fifty MBBS students in 2018. In State Budget 2019-20, Rs 90 crore (US$ 12.88 million) and Rs 40 crore (US$ 5.72 million) is proposed to be provided as Grants-in-Aid for smooth running of the Hospital and Medical College.
  • Government has introduced new health scheme Arogya Arunachal Yojana which will provide the medical coverage of Rs 5 lakh (US$ 7,000) per family per year. 
  • 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.
  • As of November 2019, 83 Gram Panchayats (GPs) have been made service ready under the Bharat Net Programme.
  • The government has invited domestic power companies in the region to develop hydropower plants.
Arunachal Pradesh State Presentation

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Arunachal Pradesh Map

Arunachal Pradesh