Assam is the largest economy in the Northeast region. Owing to its relative proximity to the rest of the country and availability of quality infrastructure, the state offers a favourable environment for industry.
Assam boasts largest tea growing area in the world, constituting around one-seventh of the global tea production. The state accounts for over 53.55 per cent in the country’s overall tea production. Tea production in the state stood at nearly 701.35 thousand tonnes during 2018-19 and reached 682.44 million kgs in 2019-20*(till Jan 2020). It also has 20 industrial estates, three industrial growth centres, 11 Integrated Infrastructure Development Depots, 17 industrial areas, 12 growth centres, eight mini industrial estates, one export promotion park and one food processing industrial park. Assam is also the most popular tourist destination among the north-eastern states.
Between 2011-12 and 2020-21, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 12.36 per cent to Rs 4.09 lakh crore (US$ 58.47 billion). Net State Domestic Product (NSDP) expanded at a CAGR of 11.48 per cent to US$ 33.20 billion between 2011-12 and 2016-17.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in the state of Assam* during April 2000 to June 2019 is US$ 122 million. Total exports from the state stood at US$ 369.76 million during 2018-19 and reached US$ 329.99 million during April-December 2019.
As of February 2020, Assam had a total installed power generation capacity of 1,756.69 MW, of which 1,253.64 MW was under central utilities, 69.83 MW was under private utilities and 433.22 MW was under the state sector.
To facilitate infrastructure support, the State Industries and Commerce Department has sponsored three projects as industrial growth centres at Chariduar, Matia and Chaygaon-Patgaon.
The Assam government has approved 11 integrated infrastructure development centres across the state. Some of the major initiatives taken by the government to promote Assam as an investment destination are:
- Government introduced Jyotisman Asom scheme under Budget 2020-21, to provide free electricity to all households whose monthly electricity consumption is up to 30 units.
- Under State Budget 2020-21, government announced setting up of five polytechnics, seven new government colleges, two medical colleges, one ayurvedic college, one new law college and new university Sati Sadhoni Rayjik Vishwavidyalaya.
- Lokpriya Gopinath Bordoloi International Airport & Dibrugarh Airport are the highly popular airports in the state. Aircraft movements from Guwahati & Dibrugarh airports stood at 26,595 and 2,182 respectively during April-October 2019. Passenger traffic at Guwahati and Dibrugarh airports during April-October 2019 was 33,17,910 and 2,95,550, respectively. Freight handled at Guwahati & Dibrugarh airports was 12,803 MT and 574 MT respectively during same period.
- In February 2019, foundation of a 70 MW Solar Park at Japisajia village of Amguri in Sibsagar district was laid that has a production life of 25 years.
- The government has set a target to generate 6,500 MW power in the state by 2030.
- Budget 2019-20 states that over 22,000 beneficiaries have been provided relief under the Atal-Amrit Abhiyan health insurance scheme which has been allocated Rs 200 crore (US$ 28.62 million) for financial year 2019-20.
- As per state budget 2019-20, Rs 500 crore (US$ 71.54 million) has been allocated for construction of roads under Asom Mala by next three years.
- For year 2019-20, government allocated Rs 50 crore (US$ 7.15 million) for construction and improvement of drains in the areas of urban local bodies.
- The State has adopted the North East Industrial Investment Promotion Policy and Industrial Policy of Assam to facilitate business through fiscal incentives and multi-year concessions to investors.
- Due to the high potential for development of wildlife tourism in the state, the central government has increased the funds under the centrally sponsored “Integrated Development of Wildlife Habitats” scheme towards the state to US$ 428 thousand for the year 2017-18. In 2017 (P), 6.07 million tourists arrived in the state of Assam.
- Assam Industrial Development Corporation (AIDC) has implemented an Export Promotion Industrial Park (EPIP) at Amingaon, near Guwahati in the district of Kamrup, at an estimated cost of US$ 3 million.
- Industrial growth centres with supporting infrastructure have been set up at Balipara in the Sonitpur district and Matia in Goalpara at estimated cost of US$ 4.5 million and US$ 5.3 million respectively.
Note: P – Provisional, * - Including Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Assam and Tripura
Assam State Presentation
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