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 favorable 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. 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 2017-18, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 21.8 per cent to Rs 3.74 trillion (US$ 53.53 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 of Industrial Policy & Promotion (DIPP), cumulative FDI inflows in the state of Assam* during April 2000 to June 2019 is US$ 112 million. Total exports from the state stood at US$ 382.35 million during 2017-18.
Exports from the state stood at US$ 369.76 million during 2018-19**.
As of April 2019, Assam had a total installed power generation capacity of 1714.85 MW, of which 1,226.16 MW was under central utilities, 51.00 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:
- 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.
- Government took a step of expanding City Infra Development Fund (CIDF) to the 6th scheduled areas which are the major areas and create long felt need for amenities in the three towns i.e. Kokrajhar, Diphu and Haflong also allocated Rs. 100 crores (US$ 14.31 million) for each town.
- In December 2018, India’s longest rail-cum-road bridge, Bogibeel Bridge, was inaugurated in Assam by the Prime Minister of India. The Bogibeel Bridge is a 4.94 km long strategically important project over the Brahmaputra River.
- 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.
- Integrated Infrastructure Development (IID) centres have been planned at Parbatpur, Serphangguri, Dalgaon, Demow, Bhomoraguri, Malinibeel, Dahudi, Silapathar, Rangia, Banderdewa and Titabar.
- In January 2018 ‘Chah Bagicha Dhan Puraskar Mela’ scheme was launched to transfer an amount of Rs 2,500 (US$ 38.79) to each Tea Garden worker in the state who has a bank account. As per budget 2018-19, such amount has been transferred to 721,485 bank accounts of workers across 752 tea gardens spread over 26 districts in Assam.
- Border Trade Centers (BTCs) have been established at Mankachar (Dhubri), Sutarkandi (Karimganj) and Darranga (Kamrup).