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Industrial Development & Economic Growth in Assam

Last updated on Jun, 26 2020

Economic Snapshot
Economic Snapshot

 


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 has the 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 694.53 million kgs during 2019-20. 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 northeast states.

At current prices, Gross State Domestic Product (GSDP) of Assam is estimated to reach Rs 4.09 trillion (US$ 58.47 billion) in 2020-21. The GSDP of the state will grow at a CAGR (in Rs) of 12.58 per cent between 2015-16 and 2020-21. Net State Domestic Product (NSDP) of Assam was Rs 2.62 trillion (US$ 40.35 billion) in 2018-19. The NSDP of the state grew at a CAGR (In Rs) of 12.04 per cent from 2015-16 to 2018-19.

According to Department for Promotion of Industry and Internal Trade (DPIIT), FDI (Foreign Direct Investment) inflow in Assam** stood at US$ 122 million between April 2000 and September 2019. Assam attracted FDI worth US$ 2.93 million between October 2019 and March 2020.

Total export from the state stood at US$ 369.76 million during 2018-19 and reached US$ 329.99 million during April-December 2019.

As of March 2020, Assam had a total installed power generation capacity of 1,756.69 megawatt (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 and Dibrugarh Airport are the most popular airports in the state. Aircraft movement from Guwahati and Dibrugarh airports stood at 45,539 and 5,502 respectively in 2019-20. Passenger traffic at Guwahati and Dibrugarh airports in 2019-20 was 54,57,449 and 5,31,993 respectively. Freight handled at Guwahati and Dibrugarh airports stood at 21,270 MT and 909 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, having a production life of 25 years.
  • The Government has set a target to generate 6,500 MW power in the state by 2030.
  • 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.
  • During 2018, foreign tourist arrival in the state reached around 5.85 million while domestic tourist visits stood at 36,846.

Note: P – Provisional, ** - Including Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Assam, and Tripura

Assam State Presentation

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Assam Map

Assam