Over the past three years, Assam has embarked on a transformative journey of economic growth and industrialisation under the leadership of Chief Minister Dr Himanta Biswa Sarma. The state has witnessed a historic milestone, with its industrial sector gaining significant momentum. This change has been fueled by newfound peace and stability, achieved through peace agreements with formerly active militant organisations. These agreements have fostered an environment conducive to economic progress, paving the way for sustainable development and entrepreneurship.
Infrastructure and Policy Reforms: Catalysts for Growth
The rapid pace of infrastructure development, coupled with industry-friendly policies implemented by the Central and State Governments, has provided a solid foundation for Assam’s economic rise. These initiatives have attracted investments from across the country and abroad, encouraging the establishment and expansion of industries in the region. The Industrial and Investment Promotion Act (IIPA) 2019 has played a pivotal role, offering customized incentives to promote industries and create an investor-friendly ecosystem.
The Rise of Micro and Small Enterprises (MSEs)
Micro and Small Enterprises have emerged as the backbone of Assam’s economic growth. With enhanced access to venture capital, credit guarantees, and government support, the state’s MSEs are flourishing like never before. These enterprises not only contribute to local economic development but also promote innovation and skill development, creating opportunities for sustainable livelihoods.
Empowering Assam’s Youth through Entrepreneurship
The youth of Assam stand at the forefront of this economic revolution. With access to financial tools such as venture capital and credit guarantees, they are now empowered to venture into entrepreneurial pursuits. This shift has turned the region into a breeding ground for young entrepreneurs, enabling them to transition from job seekers to job creators, thereby contributing to the overall economic growth of the state.
Peace and Stability: The Foundation of Progress
The peace agreements with militant groups have not only resolved longstanding conflicts but have also brought about a sense of security and stability. This newfound peace has encouraged businesses to invest in the region, transforming Assam into a hub for economic activity and innovation.
A Promising Future for Assam’s Industrialisation
With its combination of strategic policies, infrastructural advancements, and a focus on peacebuilding, Assam is poised to become an industrial powerhouse. The state’s journey over the past three years is a testament to its potential as a dynamic contributor to India’s economic landscape, creating a promising future for its people and businesses alike.
UNNATI – A new initiative
The Uttar Poorva Transformative Industrialisation Scheme (UNNATI, 2024), introduced by the Government of India on March 9, 2024, is a pivotal initiative aimed at revolutionizing the industrial landscape of the North East region. With a comprehensive focus on diverse sectors such as tourism and hospitality services, film tourism, entertainment parks, heritage property restoration, healthcare, IT & ITES, tech start-ups, and EV charging stations, the scheme seeks to drive economic growth and enhance the region’s industrial potential. By offering attractive incentives, including capital investment and capital interest subvention, UNNATI aspires to attract investment, stimulate innovation, and foster development across key areas.
To promote equitable growth, the scheme emphasizes the categorization of districts into Zone A (Industrially Advanced) and Zone B (Industrially Backward). This approach ensures tailored support and resources for districts based on their industrial progress. With a financial outlay of Rs 10,037 crore, UNNATI offers three core incentives: Capital Investment Incentive, Capital Interest Subvention, and Manufacturing & Services Linked Incentive. Notably, the scheme excludes industries like cement and plastic while encouraging investments in renewable energy and EV infrastructure. Individual industrial units can avail benefits of up to Rs 250 crore, with the initiative expected to create direct employment for approximately 83,000 individuals and countless indirect job opportunities.
Growth of Public Sector Enterprises
The growth of Public Sector Enterprises (PSEs) in Assam since 2021 further complements this transformative agenda. Recognizing the strategic role of PSEs in driving economic development, the state government has undertaken significant measures to unlock their potential. These efforts have resulted in a surge of new projects, reinforcing infrastructure, creating employment opportunities, and boosting Assam’s economic prospects. This renewed focus on PSEs underscores the government’s commitment to fostering sustainable growth and ensuring the holistic development of the region.
The realm of Public Sector Enterprises have seen a significant boom in Assam since 2021. Tapping on their potential to drive economic growth and development, the State has undertaken significant initiatives. This has resulted in a surge of new projects being initiated across Assam. This renewed focus on PSES signifies the Government’s commitment to leveraging these enterprises to create jobs, improve infrastructure and bolster Assam’s economic standing.
Ethanol initiative
On April 14, 2023, Hon’ble Prime Minister inaugurated a state-of-the-art Methanol Plant in Namrup, Assam, with a production capacity of 500 TPD (tonnes per day). The project, executed at a cost of ₹1603 crore, has been set up by Assam Petrochemicals Ltd (APL), a Government of Assam undertaking. Fully operational, the plant marks a significant milestone in India’s industrial and export capabilities. The first consignment of methanol has already been dispatched to Bangladesh and Nepal, underscoring the region’s growing role in cross-border trade and energy cooperation.
NRL Expansion
The Numaligarh Refinery Limited Expansion Project is a transformative initiative aimed at enhancing India’s refining capacity. With a total project cost of Rs 28,026 crore, including Rs 823 crore invested by the Government of Assam, this ambitious venture will increase NRL’s refining capacity from 3 MMTPA to 9 MMTPA. The project is expected to generate significant employment opportunities, with 500 direct jobs, 1,500 contractual positions, and approximately 3,000 indirect employment opportunities. This expansion is set to bolster the regional economy, strengthen India’s energy infrastructure, and contribute to the nation’s growing energy demands.
Expansion of Gas Distribution Infrastructure
North East Gas Distribution Company Limited, a joint venture between Assam Gas Company Limited (AGCL) and Oil India Limited (OIL), is spearheading a transformative project aimed at expanding gas distribution infrastructure in the Northeastern Region (NER) of India. With a significant project cost of Rs 3,545 crore, the initiative is set to deliver gas through a robust pipeline network, addressing energy needs across the region. The project is expected to generate substantial employment opportunities, including 150 direct jobs and 1,500 indirect jobs, thereby boosting regional economic growth while promoting cleaner energy solutions.
The Assam Startup Initiative
● The Assam Startup Initiative, a key component of the Assam Startup Policy, is dedicated to fostering entrepreneurship and innovation within the state. Through flagship programs like Startup Incubation and My Assam Startup ID (MASI), the initiative offers structured support to emerging startups, creating a conducive ecosystem for growth and development. Assam’s recognition as a Leader State in Category A in the Startup India State Ranking 2023 further underscores its commitment to nurturing startups and driving economic growth.
● The Assam Startup Venture Capital Fund exemplifies the government’s proactive approach toward supporting entrepreneurial ventures. Established with a total corpus of ₹200 crore, including a significant ₹100 crore contribution from the Small Industries Development Bank of India (SIDBI), the fund has already attracted interest from 29 startups seeking funding of approximately ₹75 crore. This initiative is instrumental in addressing the financial requirements of startups, enabling them to scale and achieve sustainable growth.
● Under the Assam Venture Capital Fund, notable achievements have been recorded, such as the disbursement of a first grant equity of Rs 10 crore to a startup unit. Additionally, seven incubatees have received grants totaling Rs 35 lakh for transforming their ideas into proof-of-concept (POC). Three more incubatees under the Assam Startup program have been awarded grants amounting to Rs 65 lakh. To further strengthen support across various stages of the startup journey, three new schemes have been introduced, ensuring startups receive tailored assistance to thrive in a competitive environment.
● Assam has emerged as a vibrant hub for entrepreneurial innovation, thanks to the Assam Startup initiative, which is revolutionizing the state’s business landscape. Designed to foster a thriving ecosystem for budding enterprises, the initiative focuses on nurturing early-stage startups through comprehensive support. From financial assistance and incubation to mentorship and networking opportunities, the program empowers young entrepreneurs to transform their groundbreaking ideas into impactful ventures. As a result, Assam is steadily positioning itself as the entrepreneurial nucleus of Northeast India, with several promising startups driving innovation and contributing to the state’s economic growth.
Assam Startup – The Nest has emerged as a dynamic hub for fostering entrepreneurship, delivering comprehensive support to 489 startups. These ventures have collectively secured Rs 100 crore in external funding and benefited from Rs 7 crore in grants distributed among 74 startups. The ecosystem’s impact extends beyond funding, generating Rs 40 crore in revenue in the last financial year alone. Furthermore, the initiative has significantly contributed to job creation, with 4,900 direct and indirect employment opportunities. This success underscores Assam Startup’s role in driving innovation, economic growth, and self-reliance in the region.
Growth of MSME’s
● The Micro, Small, and Medium Enterprises (MSME) sector in Assam is witnessing remarkable growth, driven by the proactive initiatives of the Government of Assam. Recognizing the pivotal role MSMEs play in fostering economic diversity and generating employment, the state government has rolled out numerous schemes and measures to nurture this vital sector. These efforts have resulted in tangible progress, evident in the increased credit flow and infrastructural support for MSMEs.
● A notable achievement is the 22 per cent increase in outstanding credit to the Micro and Small Enterprises (MSE) sector, which reached Rs 37,298.06 crore as of March 31, 2024. Additionally, the total credit disbursement to MSMEs surged by an impressive 41 per cent, rising from Rs 20,865.80 crore in 2022-23 to Rs 29,402.01 crore in 2023-24. These figures underscore the government’s commitment to empowering businesses by ensuring adequate access to financial resources.
● Further bolstering the MSME ecosystem, the Promotion of MSMEs in NER & Sikkim Scheme, a Government of India initiative, has paved the way for the construction and upgradation of 12 industrial estates with a total project cost of Rs 112.15 crore. This initiative aims to enhance infrastructure and create an enabling environment for MSMEs to thrive across the North Eastern Region.
● In line with the focus on improving operational efficiencies, the Ease of Doing Business (EoDB) reforms have significantly streamlined regulatory processes. Under the Single Window Portal, 17.75 lakh applications were disposed of, achieving a remarkable 99.17% efficiency rate. These efforts have made it easier for entrepreneurs to establish and expand their businesses, fostering a conducive climate for growth.
Through these targeted initiatives, the Assam government has demonstrated its unwavering support for the MSME sector, laying a strong foundation for sustainable economic development in the
Customized Incentives under the IIPA 2019
The Industrial & Investment Policy of Assam (IIPA), 2019, was amended to encourage substantial mega investments in the state. Under the revised framework, businesses committing to a minimum initial investment of Rs 100 crore and generating at least 200 permanent jobs are eligible for customized incentives. These tailored benefits are specifically designed to address the unique requirements of qualifying enterprises, subject to the Cabinet’s approval, ensuring a strategic push for economic growth and employment creation in the region.
Assam Credit Guarantee Scheme for Micro & Small Enterprises
In collaboration with the Small Industries Development Bank of India (SIDBI), the Assam government has introduced the Assam Credit Guarantee Scheme to support Micro and Small Enterprises (MSEs). This initiative ensures comprehensive loan guarantee coverage by leveraging the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). While CGTMSE covers 75-85% of the loan guarantee, the Government of Assam bridges the remaining 25-15% through a dedicated corpus fund, achieving a full 100% guarantee coverage. This scheme aims to boost financial confidence among banks, facilitating easier access to credit for MSEs.
The data reveals a significant growth in the performance of the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme between FY 2022-23 and 2023-24. The number of Micro and Small Enterprises (MSEs) benefitted increased from 21,195 to 34,556, marking a remarkable growth of 63 per cent. In terms of the amount covered under the scheme, there was an even higher growth of 74 per cent, with the coverage rising from Rs 2,156 crore to Rs 3,750 crore. This indicates a substantial enhancement in the reach and financial support provided by the scheme, showcasing its expanding impact on empowering MSEs and fostering economic development.
The Unity Mall – Promoting Assam’s indigenous products.
The foundation for Unity Mall has been laid at the ATPO Complex in Betkuchi, Guwahati, with the aim of promoting Assam’s indigenous products. This ambitious project, estimated to cost ₹298 crore, will serve as a vibrant hub for showcasing the state’s rich heritage, including its handicrafts and GI-tagged products. The mall will feature 35 uniform-sized stalls, stores dedicated to “Made in India” products, traditional food outlets from Assam and other states, as well as facilities like an auditorium, amphitheater, yoga and meditation center, and accommodations. By providing a platform for entrepreneurs from Assam and across the nation, Unity Mall is set to become a beacon of cultural and economic growth.
Historic Milestone in Assam’s Technological Landscape
On March 13, 2024, Hon’ble Prime Minister Shri Narendra Modi laid the foundation stone for India’s first Semiconductor Assembly and Test Facility (ATMP) by Tata Electronics Private Ltd. in Jagiroad, Morigaon district, Assam. This landmark event heralds a new era for the state, underscoring its commitment to technological innovation and economic diversification. With this development, Assam positions itself as a pivotal player in India’s rapidly advancing semiconductor sector.
A Boost to Employment and Skill Development
The Rs 27,000 crore investment in the Semiconductor ATMP unit brings not only state-of-the-art infrastructure but also a promise of extensive employment opportunities. The project is expected to generate around 27,000 jobs, offering the youth of Assam a chance to engage in cutting-edge technology and develop sustainable careers. As the semiconductor industry grows, so will the demand for skilled professionals, further enriching the state’s workforce and fostering economic growth.
Educational Transformation for a Tech-Driven Future
To align with this industrial leap, educational institutions in Assam are partnering with industry leaders to introduce specialized courses in semiconductor technology. Programs in electronics and electrical engineering are being revamped to equip students with the skills needed to thrive in this dynamic field. Opportunities for internships and hands-on training in semiconductor research and development will not only enhance the employability of the state’s youth but also strengthen the sector’s foundation.
Aligning with India’s National Vision
The establishment of the Semiconductor ATMP unit is a significant step in India’s mission to become a global semiconductor manufacturing hub. With the global semiconductor market projected to grow at a CAGR of 12.2% and reach USD 1,380.79 billion by 2029, Assam is poised to play a critical role in this journey. This initiative reflects India’s aspiration to capitalize on the burgeoning demand for electronic devices and components, reinforcing its position on the global technological map.
Catalyst for Comprehensive Growth
Assam’s foray into the semiconductor sector is set to create ripples beyond economic development, shaping the aspirations and lives of its people. This transformative venture not only strengthens the state’s technological capabilities but also cements its role in propelling India’s progress in high-tech manufacturing and innovation.
The combined investments outlined demonstrate a significant commitment to industrial and infrastructure growth in the region, amounting to a substantial ₹23,865.70 crore. This investment, spearheaded by 21 Memoranda of Understanding (MoUs) and Joint Venture Companies (JVCs) involving the Assam Power Distribution Company Limited (APDCL), promises to generate approximately 22,000 employment opportunities, both directly and indirectly, contributing to the socio-economic development of the state.
Key Industrial Contributions
Several companies, including Pepsico India, Star Cement, Dalmia Cement, and Kesar Petroproducts, have made noteworthy investments. Dalmia Cement, with an investment of ₹4,653 crore, stands out as the largest contributor in terms of capital and employment generation, providing direct employment to 790 individuals and indirectly creating 1,710 jobs. Similarly, Kesar Petroproducts’ ₹2,000 crore investment is expected to generate indirect employment for 1,800 individuals, demonstrating the potential of large-scale industries in boosting employment. The strategic investment from Flexcom Plast also emphasizes the state’s capacity for employment generation, with the highest indirect employment figure of 2,675.
Power Sector Initiatives
The partnership of APDCL with major entities like SJVN, NLCIL, and ONGC Tripura Power Company Ltd. underscores the importance of the energy sector in this growth narrative. These JVCs collectively bring ₹10,500 crore into the power sector, ensuring energy infrastructure development critical for sustaining industrial growth. These ventures are expected to create 1,050 direct and 3,150 indirect jobs, reflecting the sector’s ability to support broader economic activity.
Diversification and Balanced Growth
The investments span diverse industries, from cement and chemicals to EV manufacturing and hospitality, ensuring balanced growth across sectors. The hospitality industry’s inclusion, with projects like Taj Kaziranga, indicates a focus on enhancing tourism and related services. Meanwhile, the emphasis on infrastructure, reflected in investments from Maxim Infrastructure and Galaxy Infra Creation, is poised to improve the state’s logistics and construction capacities.
Socio-Economic Impact
With direct employment at nearly 7,000 and indirect opportunities exceeding 15,000, these investments promise to uplift livelihoods significantly. The high levels of indirect employment highlight the multiplier effect of industrial growth, creating ancillary industries and boosting the local economy. Additionally, these projects will likely improve skill levels, regional infrastructe
Assam’s journey over the past three years showcases a remarkable transformation into a dynamic hub of industrialization and economic growth. Through strategic policies, peace-building initiatives, infrastructure development, and a focus on entrepreneurship and innovation, the state has laid the foundation for sustainable progress. The launch of transformative schemes like UNNATI, the establishment of cutting-edge facilities such as the Semiconductor ATMP unit, and the growth of sectors like MSMEs, public enterprises, and renewable energy underscore Assam’s commitment to inclusive development. As investments pour in and employment opportunities expand, Assam emerges as a critical contributor to India’s industrial and economic ambitions, fostering a future brimming with potential for its people and businesses.
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