Introduction
Assam is located in the northeast of India. The state shares its borders with Arunachal Pradesh, Nagaland, Manipur, Mizoram, Meghalaya, Tripura, and West Bengal. The state shares international borders with Bangladesh, Myanmar, and the Kingdom of Bhutan. Assam is India's gateway to the northeast and acts as a vital link for trade with Southeast Asian countries. The state is known for its tea, petroleum resources, Muga silk and biodiversity. It is also becoming an increasingly popular destination for wildlife tourism.
The state is rich in water resources and has vast tracts of fertile land. Assam is also the third-largest producer of petroleum and natural gas in the country and has ample reserves of limestone. With its five national parks and 18 wildlife sanctuaries, the state is a biodiversity hotspot. Other potential areas of investment include power and energy, mineral-based industries, tourism, and crude oil refining.
Assam has adopted numerous investor-friendly policies to attract investments and accelerate industrial development. Key areas of focus include the IT, tourism, and power sector along with several other initiatives such as the Northeast Industrial and
Investment Promotion Policy (NEIIPP) 2007 and the Industrial and Investment Policy 2014. Assam stood 22nd among Indian states in rankings based on ease of doing business and reform implementation, according to a study by the World Bank and KPMG. The Government has set a target to generate 6,500-megawatt (MW) power in the state by 2030.
At current prices, the Gross State Domestic Product (GSDP) of Assam is estimated to be at Rs. 8,71,451 crore (US$ 96.83 billion) in FY27.
The GSDP increased at a CAGR of 12.96% between FY16 to FY27.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows for Assam stood at Rs. 200.62 crore (US$ 26.10 million) from October 2019-March 2026.
Exports from the state stood at Rs.4,045 crore (US$ 461.99 million) in FY26. In FY26, the total tea exports from Assam accounted for Rs. 1,858.75 crore (US$ 211.96 million), which was 45.88% of the total exports.
According to the Telecom Regulatory Authority of India (TRAI), Assam had 29.10 million wireless subscribers and 0.43 million wireline subscribers, as of March 2026.
As of April 2026, Assam had a total installed power generation capacity of 2693.04 MW, of which 1,734.42 MW was under central utilities, 547.26 MW was under private utilities, and 411.37 MW was under state utilities.
Recent Developments
- In 2026 (January-March 2026), the state’s tea production stood at 18.75 million kgs.
- In February 2026, Sun Pharmaceutical Industries announced plans to invest Rs. 500 crore (US$ 5.66 million) in Assam to establish a new pharmaceutical manufacturing facility in the state.
- In February 2026, the Assam government announced the Rs. 213 crore (US$ 2.37 million) Kamakhya Ropeway project to strengthen religious tourism infrastructure and improve connectivity to the Kamakhya Temple in Guwahati.
- The Government of India and the Asian Development Bank (ADB) signed a Rs. 1,109 crore (US$ 125 million) loan agreement on September 22, 2025, to improve urban services and build climate resilience across six districts in Assam. The funds will support infrastructure such as six water treatment plants with a combined capacity of 72 million litres per day, 800 km of water-distribution pipelines, and advanced storm-water management systems in Guwahati’s Bahini Basin. The project also includes institutional reforms such as real-time monitoring to maintain non-revenue water below 20% and build capacity in urban governance.
- On August 27, 2025, the Union Cabinet has approved the doubling of the 194 km railway line between Furkating and New Tinsukia under Northeast Frontier Railway at an estimated cost of Rs. 3,634 crore (US$ 409 million) to enhance passenger and freight capacity in the North-East region.
- The Indian Institute of Management (IIM) Amendment Bill, 2025 was passed by Parliament on August 20, 2025, paving the way for the establishment of the 22nd IIM in India in Guwahati, Assam.
- The Government of India announced two new rail links from Assam and West Bengal into Bhutan on September 24, 2025, aiming to enhance cross-border connectivity and bolster trade and tourism between the two countries.
- The Government of India plans to invest Rs. 3,00,000 crore (US$ 33.8 billion) in the State of Assam to upgrade national highways to standards comparable with those in the United States, aiming to transform the region’s infrastructure with key projects such as the Guwahati Ring Road and a tunnel under the Brahmaputra River in Dibrugarh.
- Under State Budget FY27:
- Rs. 8,421 crore (US$ 935.67 million) has been allocated/spent under the Asom Mala programme for road infrastructure development, while National Highway projects worth Rs. 1,887 crore (US$ 209.67 million) were undertaken to strengthen connectivity across the state.
- The government waived admission fees worth Rs. 780 crore (US$ 86.67 million) under Pragyan Bharti and invested Rs. 210 crore (US$ 23.33 million) for the construction of 118 Model High Schools in tea garden areas.
- Rs. 5,500 crore (US$ 611.11 million) is being invested to establish 10 new medical colleges and expand healthcare infrastructure across the state.
- Rs. 500 crore (US$ 55.56 million) has been earmarked for installation of a Proton Therapy facility at Gauhati Medical College and Hospital (GMCH).
- The Ministry of Rural Development has approved 78 roads totalling 563.67 km and 14 bridges in Assam under the Pradhan Mantri Gram Sadak Yojana (PMGSY) - III, with an investment of Rs. 378.68 crore (US$ 45.41 million) to enhance rural connectivity and boost economic growth in the North-Eastern region.
- Union Minister of Ports, Shipping & Waterways, Mr. Sarbananda Sonowal, announced an investment of more than Rs. 645 crore (US$ 77.64 million) for the development of 10 waterways projects in Assam, as part of the flagship Sagarmala program.
- In March 2024, Prime Minister Mr. Narendra Modi laid the foundation stone of a series of development projects worth over Rs 17,500 crores (US$ 2.11 billion) in Jorhat, Assam. These projects span various sectors including healthcare, oil and gas, railways and housing.
- 50 MW Solar Project is being developed in Sitalmari village, in Barsola Block under Dhekiajuli Revenue Sector in Sonitpur district. It will be built at an estimated cost of Rs. 291 crores (US$ 35.14 million). The project will generate 101 million units of green energy in the first year and the cumulative energy generation over a period of 25 years will be about 2,319 million units.
- In the February 2023 cabinet meeting, Rs. 270 crore (US$ 33 million) was sanctioned as Grant-in-Aid to Mega Mission Society - Chief Minister Samagra Gramya Unnayan Yojana for paddy procurement by Assam Food & Civil Supplies Corporation Ltd. in an uninterrupted manner and also implement Mission Amrit Sarovar.
- For all-round development of Assam, approval to raising of approx. Rs. 414.42 crore (US$ 50.6 million) loan by the Government of Assam from NABARD for the following sanctioned projects
- 1,000 Model Anganwadi Centers in 35 districts: Rs. 223.80 crore (US$ 27.3 million)
- 3 Rural Road Projects in 2 districts: Rs. 160.69 crore (US$ 19.6 million)
- 39 Soil Conservation and Water Harvesting Projects in 20 districts: Rs. 29.91 crore (US$ 3.7 million)
- The proposal for the construction of a bridge over Brahmaputra connecting Panbazar with North Guwahati has been approved by the Ministry of Finance, Government of India with a proposed cost of Rs. 1,890 crore (US$ 293.25 million). New Development Bank (NDB) will be funding this project.
Key Sectors
- In March 2026, Assam achieved a significant milestone in agricultural exports with the first-ever shipment of GI-tagged Karbi Anglong ginger to the United Kingdom.
- In March 2026, Prime Minister Mr. Narendra Modi inaugurated and laid the foundation stone for multiple development projects worth Rs. 19,480 crore (US$ 216.44 million) in Guwahati, Assam, aimed at strengthening infrastructure, energy security, tourism and agricultural development across the state.
- The GST 2.0 reforms announced India wide on September 22, 2025, cut the tax rate on items from the hand-loom and sericulture sectors (including the state’s muga-silk clusters) to 5%, bolstering weavers’ incomes and enhancing the competitiveness of local textiles in domestic and export markets in Assam.
- The Assam government approved the Assam Agricultural Produce and Livestock Marketing Act on September 9, 2025, aimed at streamlining agricultural and livestock trade across the state, enhancing market access for farmers and rearers.
- The state of Assam is positioning tourism as a key job-creator under its 2025 policy, with a focus on river tourism, ecotourism, cultural tourism, adventure tourism and development of lesser-known destinations, aiming to raise tourism’s contribution from about 5.5% of GDP to 10%.
- Kaziranga National Park recorded over 4,43,636 visitors during the period from October 1, 2024, to May 18, 2025 (a 35% rise), making it the third most-visited national park in India, after Ranthambore National Park and Periyar National Park.
- At the Advantage Assam 2.0 Summit held in February 2025, the tourism sector received investment commitments of over Rs. 8,000 crore (US$ 902 million) for developing eco-tourism circuits, luxury river cruises, wildlife lodges and heritage infrastructure across Assam.
- In FY25, the total tea exports from Assam accounted for Rs. 2,361 crore (US$ 266.23 million), which was 48% of the total exports.
- According to Assam’s Chief Minister Mr. Himanta Biswa Sarma, the state has 350 hectares of oil palm cultivation, covering Goalpara, Bongaigaon and Kamrup districts, which could be beneficial under the Union Government’s newly launched National Mission on Edible Oils - Oil Palm (NMEO-OP).
Assam offers a strong and evolving growth story, anchored by its strategic location as India’s gateway to the Northeast and Southeast Asia, abundant natural resources, and rapidly improving infrastructure. Robust GSDP growth, rising public investment in roads, railways, waterways, and urban infrastructure, and targeted policy support are strengthening the state’s economic base. Traditional strengths in tea, oil and gas, and handlooms are being complemented by expanding opportunities in power, tourism, logistics, and services. With increasing connectivity, sustained capital expenditure, and a focus on sustainable and inclusive development, Assam is well positioned to emerge as a key investment and trade hub in eastern India.
FACTFILE
Capital
DispurGeographical Area (sq km)
78,438State Language
Assamese, Bodo, Bengali and EnglishLiteracy Rate
72.2 per centKey Industries:
Tea
Coal
Oil and gas
Limestone and Cement
Agriculture
Food processing
Tourism
Horticulture
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