Assam State Presentation and Economic Growth Report | IBEF

Capital: Dispur

Geographical Area (sq km): 78,438

State Language: Assamese, Bodo, Bengali and English

Literacy Rate: 72.2%

Key Industries: Tea, coal, oil and gas, Limestone and Cement, agriculture, horticulture, food processing and tourism

Last updated: Aug, 2024

Assam Industry Report

Jun, 2024

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 favourable environment for industry.

Assam has the largest tea growing area in the world, constituting around one-seventh of the global tea production. In March 2023, tea production in the state stood at 33.49 million kgs, while in March 2022 it stood at 24.50 million kgs. 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 northeast states.

At current prices, the Gross State Domestic Product (GSDP) of Assam is estimated to be at Rs. 5.67 lakh crore (US$ 69.25 billion) in 2022-23. The GSDP increased at a CAGR of 13.90% between 2016-17 to 2022-23.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Assam were valued at US$ 20.62 million from October 2019-March 2023.

Exports from the state stood at US$ 415.62 million in FY21. Assam exported key items such as tea, petroleum products, coal, coke and briquettes and other products. In FY21, the total tea exports from Assam accounted for US$ 281.42 million, which was 68% of the total export.

As of May, 2023, Assam had a total installed power generation capacity of 1,858.31 MW, of which 1,285.16 MW was under central utilities, 161.78 MW was under private utilities and 411.37 MW was under state utilities.

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:

Assam Chief Minister Mr. Himanta Biswa Sarma laid foundation stone of seven infrastructure projects, including a new Raj Bhavan and Guwahati Police Commissioner's office, worth US$ 216.9 million (Rs. 1,776 crore) in the state capital.
Under the State Budget 2022-23, Rs. 2,181 crore (US$ 286.02 million) has been allocated towards Sarva Shiksha Abhiyan and Rs. 688 crore (US$ 90.22 million) has been allocated towards National Mid-Day Meal Programme.
To increase the quality of healthcare, five new medical colleges will be built in the state. At Bongaigaon, Behali and Sualkuchi, three new engineering colleges will be established. In Karbi Anglong, a state university will be constructed for students from hill districts under the State Budget 2021-22.
According to Chief Minister of Assam, 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).
Lokpriya Gopinath Bordoloi International Airport and Dibrugarh Airport are the most popular airports in the state. Aircraft movement from Guwahati and Dibrugarh airports stood at 30,049 and 5,738, respectively, in 2022-23 (until February 2022). Passenger traffic at Guwahati and Dibrugarh airports in 2022-23 (until February 2022) was at 2,760,778 and 462,397 respectively. Freight handled at Guwahati and Dibrugarh airports stood at 20,028 MT and 927 MT, respectively, during the same period.
The Government has set a target to generate 6,500 MW of power in the state by 2030.
State Cattle and Buffalo Breeding Policy 2020 - To achieve maximum levels of productivity from low productive cattle, cross-breeding/interbreeding with the recognised dairy breed was done.
Under the ‘Comprehensive Telecom Development Plan’ (CTDP) for the North-eastern region, the Union Cabinet approved the Universal Service Obligation Fund (USOF) scheme to provide mobile coverage in Arunachal Pradesh and two districts of Assam, namely Karbi Anglong and Dima Hasao.