Assam’s economy has been witnessing remarkable growth, as reflected in several key indicators under the leadership of Chief Minister Himanta Biswa Sarma. The state’s Gross State Domestic Product (GSDP) and Per Capita Income (PCI) have shown significant improvement, accompanied by impressive economic growth rates. Strengthened fiscal capacity has further bolstered Assam’s developmental framework, enabling the government to undertake impactful poverty alleviation measures. These advancements collectively underscore the state’s positive trajectory, highlighting its progress toward sustainable and inclusive economic development.
Projected GSDP Growth for 2024-25
Assam’s Gross State Domestic Product (GSDP) is projected to demonstrate remarkable growth in the coming years. As per the estimated forecast, the State GDP at current prices for the fiscal year 2024-25 is anticipated to reach Rs 6.43 lakh crore. This marks an impressive increase of over 150 per cent compared to the GSDP of Rs 2.54 lakh crore recorded in the fiscal year 2016-17. Such substantial growth highlights the state’s expanding economic base and the effectiveness of its developmental initiatives.
The increase in per capita income from 2016-17 to 2023-24
Furthermore, the advance estimate for the nominal GSDP of Assam at current prices for the fiscal year 2023-24 (AE) indicates a projected figure of Rs 5.70 lakh crore. This represents a significant increase from Rs 4.93 lakh crore recorded in 2022-23 (QE), showcasing a robust year-on-year growth rate of 15.6 per cent. This consistent upward trend underscores Assam’s ongoing efforts to strengthen its economic framework, which is driven by advancements in infrastructure, industry, and services sectors. These figures reflect the state’s potential to emerge as a prominent contributor to the nation’s economy in the years to come.
Economic Momentum Surpassing the National Average
Over the past seven years, the state has witnessed a remarkable growth in its per capita income, more than doubling during this period. In the financial year 2016-17, the per capita income at current prices was Rs 66,330. By 2022-23, this figure had surged to Rs 1,38,635, reflecting the significant strides in economic development and improved population earnings. This upward trend is projected to continue, with the per capita income estimated to reach Rs 1,58,807 in the financial year 2023-24. Such growth highlights the state’s increasing economic prosperity, driven by advancements in various sectors, better employment opportunities, and government policies to boost economic productivity and income levels.
Economic Growth
Assam’s economy has showcased impressive nominal growth, estimated at 19.9 per cent in the financial year 2022-23 (Quick Estimates), surpassing the national average growth of 16.1 per cent during the same period. This remarkable growth highlights Assam’s increasing economic momentum and its role as a significant contributor to the national economy. Over the years, the state’s contribution to India’s Gross Domestic Product (GDP) at current prices has consistently risen, improving from 1.65 per cent in 2016-17 to 1.81 per cent in 2022-23 (QE). This upward trajectory reflects the state’s focus on robust economic policies, industrial development, and strategic initiatives to enhance its economic standing. By growing faster than the national average, Assam is positioning itself as an emerging economic powerhouse in India, paving the way for future development and opportunities.
Growth in Budgetary Expenditure and Capital Investments
The Government of Assam has demonstrated a commendable commitment to enhancing its fiscal capacity over the years, as evidenced by a significant rise in budgetary expenditure. The budgetary outlay expanded from Rs 41,931 crore in the financial year 2015-16 to an impressive Rs 1,27,283 crore in 2022-23, reflecting focused efforts toward effective financial management and strategic resource allocation. This steady increase underscores a deliberate strategy to address key developmental priorities and improve public welfare. Capital expenditure, a critical component of long-term economic growth, has also experienced a substantial surge. Rising from Rs 2,951 crore in 2015-16 to Rs 16,338 crore in 2022-23, the government has showcased a robust commitment to infrastructure development, fostering sustainable growth and creating durable assets that will benefit future generations.
Role of the Rural Infrastructure Development Fund (RIDF)
The Rural Infrastructure Development Fund (RIDF) has emerged as a cornerstone in Assam’s capital expenditure framework, particularly in rural development. Investments through RIDF have shown remarkable growth, increasing from Rs 765 crore in 2018-19 to Rs 2,126 crore in 2022-23. This upward trajectory highlights the government’s unwavering focus on improving rural infrastructure, crucial for uplifting underserved areas. Projects funded through RIDF have facilitated better connectivity, enhanced agricultural productivity, and improved access to basic amenities, thereby driving inclusive economic growth. This consistent increase in funding through RIDF demonstrates a proactive approach toward bridging the urban-rural development gap.
Externally Aided Projects (EAP) as Catalysts for Development
Externally Aided Projects (EAP) have played a transformative role in Assam’s developmental journey, particularly in large-scale initiatives targeting social and physical infrastructure. Funding under EAP has grown exponentially, from Rs 485 crore in 2018-19 to Rs 2,606 crore in 2022-23. This significant increase reflects the effective collaboration between the Government of Assam and international funding agencies, enabling the successful execution of projects in the healthcare, environment, transport, and public service delivery sectors. The approved outlay for EAP projects stands at Rs 60,490.31 crore, with 17 ongoing projects valued at Rs 36,501.76 crore driving significant progress across diverse sectors. An additional 10 projects worth Rs 23,988.55 crore are in the pipeline, signalling an accelerated trajectory for Assam’s holistic growth.
Strategic Support Through SASCI
The Government of Assam has also leveraged the Scheme for Special Assistance to States for Capital Investment (SASCI), introduced by the Government of India, to further bolster its capital expenditure initiatives. This 50-year interest-free loan scheme has proved instrumental in augmenting the state’s financial capacity for infrastructure projects. The release of funds under SASCI to Assam has grown more than tenfold since 2020-21, enabling the state to undertake critical developmental projects across sectors. This strategic assistance has been pivotal in supplementing the state’s resources, ensuring the timely execution of capital-intensive projects, and driving long-term economic growth.
Impact and Future Prospects
The effective utilisation of resources mobilised through RIDF, EAP, and SASCI has underscored Assam’s dedication to sustainable and inclusive development. The state’s impressive increase of 177 per cent in RIDF-funded capital expenditure and 437 per cent growth under EAP over the last five years illustrates its proactive governance and strategic planning. The ongoing and upcoming projects across key sectors highlight Assam’s holistic vision for growth and transformation. By continuing to tap into such funding mechanisms and fostering collaborations, Assam is well-positioned to sustain its upward growth trajectory and emerge as a model of fiscal prudence and development in the region.
Digital Infrastructure for Direct Benefit Transfer Schemes (DIDS): Another significant achievement is the introduction of the DIDS module. DIDS is a high-end digital platform developed to implement DBT schemes in ‘plug-and-play mode. Any department today may directly launch and implement DBT schemes with ease, which would drastically reduce the administrative cost of the schemes and would ensure ‘end-to-end’ digitisation of the schemes.
Poverty Alleviation
The fruit of development and economic growth is reaching every nook and corner, to every household and every individual in the State. This is evident from the fact that over 80 lakh people in Assam have come out of poverty in the last nine years.
The 2023 multidimensional poverty in India (MPI) data of the NITI Aayog shows that the poverty headcount ratio in Assam has plummeted from 36.97 per cent in 2013-14 to 14.47 per cent in 2022-23. This poverty reduction is nothing but the result of pro-people and pro-poor policies of the government.
The Assam government has launched initiatives to empower women, marginalised communities, and farmers. Key programs include promoting girls’ education, supporting women entrepreneurs, and providing affordable housing. The government is also focused on renewable energy, farm productivity, and poverty alleviation, with schemes like mandatory rooftop solar installations, farm equipment distribution, and the Orunodoi 3.0 financial assistance for women. These initiatives aim to foster sustainable development and empowerment.
The Mukhya Mantri Nijut Moina initiative encourages girls’ education by providing one-time incentives for students joining class 11, first-year graduation, and first-year post-graduation. Financial assistance of Rs 10,000, Rs 12,500, and Rs 15,000 will be offered to approximately 10 lakh girl students. This support will be available to students admitted to government colleges and institutions, ensuring that financial constraints do not hinder their pursuit of education.
The Mukhya Mantri Mahila Udyamita Abhiyaan focuses on empowering women, especially in rural and urban areas. Women members of self-help groups will be given a minimum amount of Rs 47,500 through grants, subsidies, and loans. This initiative aims to promote entrepreneurship and support women in becoming financially independent by providing them with the necessary resources to start or expand their businesses.
Under the Mukhya Mantri Awas Yojana (Gramin), 13,000 houses will be allocated to eligible beneficiaries from tea garden communities and the poorest of poor families not included in the socio-economic caste census. This scheme is designed to provide affordable housing and improve marginalised communities’ living standards, ensuring they have access to basic shelter.
To achieve sustainable development, the state government has mandated that all new private and public buildings in Assam install rooftop solar facilities. This initiative aims to promote renewable energy and reduce the carbon footprint of new constructions, aligning with the broader goals of environmental conservation.
The state government will distribute essential farm equipment such as power tillers, tractors, and threshers to support agricultural activities. This farm mechanisation initiative seeks to improve productivity, reduce the dependency on manual labour, and make farming more efficient. It is expected to provide much-needed support to farmers, enabling them to enhance their agricultural output and livelihoods.
Under Chief Minister Himanta Biswa Sharma, the Assam government launched the Orunodoi 3.0 Scheme as a poverty alleviation initiative. Targeted at women, this scheme provides direct financial assistance of Rs 1,250 to eligible women each month, transferred directly to their bank accounts. The scheme will cover 12 lakh new beneficiaries, adding 27.77 lakh households already benefiting from the program. Applications for Orunodoi 3.0 began on September 19, 2024, through both online and offline modes.
The financial assistance includes Rs 400 for medicines, Rs 200 for pulses, Rs 150 for fruits and vegetables, Rs 170 for essential needs, and Rs 80 for sugar. Beneficiaries registered under two merged schemes—Deen Dayal Divyangjan Achoni and Indira Miri Sarbojanin Biswa Pension Achoni—receive an additional Rs 250. Furthermore, per the 2023-24 budget, beneficiaries are entitled to an extra Rs 150, raising the total monthly benefit to Rs 1,400.
This scheme represents the largest Direct Benefit Transfer (DBT) initiative in Assam, focusing on improving the health and nutritional needs of economically backward households across the state.
The Digital Infrastructure for Direct Benefit Transfer Schemes (DIDS) introduction marks a significant milestone in streamlining welfare delivery. DIDS is a sophisticated digital platform designed to facilitate the implementation of DBT schemes in a seamless “plug-and-play” manner. This innovation enables departments to launch and administer DBT schemes easily, significantly cutting administrative costs while ensuring comprehensive digitisation from inception to execution. The DIDS module reflects the government’s commitment to leveraging technology to enhance efficiency, transparency, and accessibility in welfare programs.
Assam’s strides in poverty alleviation underscore the transformative impact of inclusive development policies. Over the past nine years, more than 80 lakh people in Assam have emerged from poverty, a testament to the state’s focused and pro-people initiatives. The Multidimensional Poverty Index (MPI) data for 2023, released by NITI Aayog, reveals a remarkable drop in Assam’s poverty headcount ratio from 36.97 per cent in 2013-14 to 14.47 per cent in 2022-23. This significant reduction reflects the effectiveness of government policies aimed at uplifting the marginalised, ensuring that the benefits of economic growth reach every individual and household across the state.
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