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About Assam: Tourism, Industries in Assam, Agriculture, Economy & Geography

Last updated on Feb, 9 2021

Economic Snapshot
Economic Snapshot

 

Factfile

  • Capital:Dispur
  • Geographical Area (sq km):78,438
  • State Language:Assamese, Bodo, Bengali and English
  • Literacy Rate:72.2 per cent
  • Key Industries:Tea, coal, oil and gas, Limestone and Cement, agriculture, horticulture, food processing and tourism

ASSAM State Report | December, 2020

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 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 North East 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 reforms 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 reach Rs. 4.09 trillion (US$ 58.47 billion) in 2020-21. The GSDP of the state grew at a CAGR (in Rs.) of 12.58% between 2015-16 and 2020-21.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Assam were valued at US$ 8.19 million between October 2019 and September 2020.

Exports from the state stood at US$ 652.57 million in FY21 (until October 2020). Assam exported key items such as tea, coal, coke and briquettes and other products. In FY21 (until October 2020), the total tea exports from Assam accounted for US$ 472.97 million, which was 72% of the total export.

Recent Developments:

  • In October 2020, Mr. Nitin Gadkari, the Union Minister for Road Transport, Highways and MSMEs, laid foundation stones for the country's first multimodal logistic park in Assam. The park worth Rs. 693.97 crore (US$ 93.87 million) would provide direct air, road, rail and waterway connectivity to citizens. It will be established under the government’s ‘Bharatmala Pariyojana’ initiative.
  • 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. 
  • Government of Assam has started the project preparatory activities for the World Bank funded Inland Water Project under the Inland Water Transport Department at Rs. 975 crore (US$ 150.60) which will help realise the huge untapped potential in this sector.
  • 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.

Key Sectors:

  • Tea: Between April 2020 and October 2020, production of tea in the state stood at 502.30 million kgs, contributing 52% to the total tea production in India.
  •  Agriculture and Allies: In 2019-20, the total production of horticulture crops in the state was expected to be 6876.40 thousand metric tonnes and area under production was 704.82 thousand hectares. In 2019-20, the total production of vegetables and fruits in the state was estimated at 3673.88 thousand metric tonnes and 2562.30 thousand metric tonnes, respectively.
  • Sericulture: Assam enjoys global monopoly in terms of Muga silk (also known as golden silk) production. The state accounts for around 95% of global Muga production. Moreover, Assam is the country’s major Eri silk producer (accounts for 65% of the country’s Eri silk production). Under State Budget 2020-21, Government allocated Rs. 289 crore (US$ 41.35 million) for the Handloom Textiles and Sericulture Department.
  • Tourism: In 2019 (as of December 2019), 4.7 million tourists arrived in Assam.

Note: @ - Includes Fruits, Vegetables, Spices, Honey, Plantation, Aromatic and Flowers, * - As per 3rd Advance Estimate, ^-Provisional, ** - Including Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Assam and Tripura

Factfile

  • Capital:Dispur
  • Geographical Area (sq km):78,438
  • State Language:Assamese, Bodo, Bengali and English
  • Literacy Rate:72.2 per cent
  • Key Industries:Tea, coal, oil and gas, Limestone and Cement, agriculture, horticulture, food processing and tourism
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Assam