Assam

ASSAM

General Profile

Assam is a northeastern state of India. Located just below the eastern Himalayan foothills, it is surrounded by the other northeastern states: Arunachal Pradesh, Nagaland Manipur, Mizoram, Tripura and Meghalaya. Assam and its commercial capital Guwahati form the gateway to the northeastern states, together called the seven sisters.

It has the unique Locational advantage of being situated close to South East Asian countries and hence it has the potential to emerge as a strategic base for domestic and foreign investors to tap the vast potential markets of countries like China, Myanmar, Malaysia, Thailand, Philippines, Cambodia, Indonesia, etc.

Assam’s proximity to SAARC countries like Bangladesh, Nepal and Bhutan gives it the investment potential considering the advantage of border trade with theses countries. Border Trade Centre at Sutarkandi in Karimganj district and Mankachar in Dhubri district has been developed to facilitate border trade with Bangladesh. It has been proposed in the 11th five-year plan to set up two more Border Trade Center, one at Ledo connecting China and other at Darranga connecting Bhutan. There are several Land Custom Stations (LCS) in the state bordering Bangladesh and Bhutan to facilitate border trade.

Border points between Myanmar and North East region have been opened at Moreh (Manipur) and Champhora (Mizoram). Besides, Assam’s internal waterway networks connect it to Bangladesh giving it access to the ports of Chittagong (Bangladesh), Kolkata and Haldia (West Bengal).

Industrial scenario has undergone a vast change in Assam. Apart from tea, petroleum and petrochemicals, other industries in various sectors like paper, fertilizer, cement, coke, lime, sugar, engineering, plastic, steel, printing, cosmetics, poultry & dairy products along with handloom and handicraft have thrived in the state. Moreover, with its rich flora and fauna, breathtaking natural beauty, age-old temples and monuments, Assam offers a unique potential for tourism industries for both domestic and foreign market.

Economic Profile

Per Capita Income (At Current/Constant Prices) of Assam (1980-1981 to 2000-2001)

Note: 1993-94 to 2000-01 is at Constant Prices (1993-94).
Compiled from the statistics released by: National Commission for Women.

Major Industries

Agro- based industries

Assam is an agrarian economy since time immemorial with about 75 per cent of Assam’s workforce engaged in agriculture and allied activities. Agriculture roughly contributes 40 per cent to the state GDP. Roughly 40 per cent of the total area is cultivated.

The state government has realized the importance of agriculture in the state economy and is pursuing a drive to make the state self-sufficient in basic foodgrains by educating the cultivators about the need for better methods and high-yield seeds.

Assam is endowed with a favorable climate, plentiful rainfall and a variety of terrains. The North-east in general, and Assam in particular is hence ideally suited for the growth of a variety of food crops like paddy and corn, as also plantation (cash) crops like tea and rubber. Tea from Assam is highly prized in the west, particularly Europe, as a beverage. The abundant forest resources provide timber for such industries as plywood, paper etc and also houses a variety of fruits like banana, pineapple, citrus fruits, guava, papaya etc. These are storehouses of an array of medicinal herbs, which have been used by the natives down the ages. These can be tapped for commercial purpose. Riding on regional advantages, industries like mushrooms; silk-reeling and jute-based products are waiting to be tapped to cater to the burgeoning demand in the domestic and overseas markets. Domestic agricultural know-how and economies of scale; permit the growing of vegetables like carrots, tomatoes, cauliflower, cabbages etc. Interestingly, the waste from this wide array of agro-based industries can be channeled towards manufacturing of medium density fiber (MDF) boards that qualifies as a substitute for plywood and timber. Most of these natural resources have hitherto been tapped to cater primarily to local demand without much of a focus on the wider market economics. New technology, Research & Development, suitable marketing all propped up by ample finance should see the setting up of commercial ventures which would capitalize on these resources to the fullest.

Medicinal herbs and plants

With its vast hills and forests, Assam is the home for a variety of medicinal herbs and plants. About 300 types of medicinal herbs and plants are known to exist in abundance in the state. It was found in a recent survey that the Brahamaputra valley itself has 150 varieties of herbs and plants of commercial value. About 300 types of medicinal herbs and over 600 varieties of orchids are known to exist in abundance in the state. It is estimated that only about 5-10 per cent of the plants and herbs are currently unutilized and the rest holds a vast potential.

Sericulture

The climate and general environment of Assam is well suited to sericulture. Traditional varieties of silk cultured include eri, muga and mulberry. Recently a variety known as Tassar is being cultured on an experimental basis. Being a traditional activity, the local populace is a knowledge base about the intricacies of this fine art particularly in respect of eri and muga. The muga silk, known for its fine sheen and golden colour is used by the local silk weaving industry and this has contributed to the development of the muga culture in the state. With further infusion of capital and modern methods, the state offers a tremendous potential for the development of large-scale industry based on silk. The state government, in its effort to encourage the industry, has established a number of silk processing and spinning units besides a host of other infrastructure necessary for sericulture.

Horticulture and spices

The agro-climatic conditions of the state favor the growth of a variety of fruit and vegetables/ spices including coconut, banana, pineapple, orange, ginger, turmeric, chilies, potatoes, etc. some of the important horticulture/spices produce figures of the state are given below:

With better quality planting material, sufficient research support and better know-how, the state could easily be poised for a major boom in the fruit growing and food processing industry. Market opportunities exist both locally and more so for export.

The state government on its part has given a special thrust to non-perishable produce and has undertaken, on a large scale, an awareness drive that focuses on

• Development of progeny orchards to multiply high quality planting materials.
• Expanding the area under horticultural cultivation by demonstration of the cultivation of fruits, spices, vegetables, tuber crops, flower, mushroom, etc. and
• Educating the farmers on methods to improve yield and sustain a regenerative propagation model for orchards.

Forest based industries

The state of Assam has a rich forest cover encompassing nearly a quarter of its land area. Roughly half of the forests are reserved. Blessed with plentiful rainfall, the forests are a reserve of such commercially useful produce like timber, bamboo, stone, cane, etc. These products in turn fuel a variety of units producing plywood, matchwood, cement, etc. bamboo and cane have also been to put to good use.

The state is also known for its rich fauna comprising rare and endangered species as well. Two national parks viz. Kaziranga and Manas, besides ten wildlife sanctuaries and one game reserve are located in Assam. These are home to the famous one-horned rhino besides elephants, tigers and others. The potential of these parks as tourist attractions is yet to be realized to their fullest.

Animal husbandry

The weather is well suited to livestock rearing in Assam. The government has undertaken a massive programme to improve the quality of cattle and other livestock through improved feed and a host of biotechnological measures. Most of the livestock are used for meat production, draught for farming purposes, milk production and egg production.

The government is encouraging the populace to undertake this activity on an industrial scale with an aim to speed up development of this sector.

Mineral based industry

The state is endowed with plenty of natural resources with crude oil (reserve-158 million tones) being the chief among them. The state accounts for about 15 per cent of India’s crude output. The wells at Digboi, Duliajan, Sivasagar etc. also produce natural gas (reserve-156 billion cu. meters.) accounting for about 50 per cent of India’s total onshore production, which may be used as feedstock for production of fertilizers, electricity and petrochemicals, and also as fuel in the tea industries.

Limestone with reserves of about 500 million tones is another important resource and is available in various grades. The China clay available in the Karbi- Anglong district is a vital input for the ceramics industry has already spawned a few small plants. Deposits of decorative stones like granite, estimated to be more than a billion cubic meters are available in various shades and colors, which have a huge market potential locally and abroad.

Coal reserves account for more than 250 tones. The coal found in upper Assam and the central Assam highlands have high sulphur content and high volatile matter content, which can be used in:

• Thermal power plants based on modern technology, which will take care of the high sulphur content.
• Fertilizer production based on gasification of coal.
• Coal slurry to replace furnace oil
• Electro-metallurgical grade coke, etc.

Tourism

To nature lovers all over the world, wildlife enthusiasts, sightseers, ornithologists and photographers, Assam is a dream destination. Its natural landscape, lush green forests, wild life sanctuaries, pilgrimage spots and tea gardens offer a wide choice to cater to the tastes of a variety of tourists from the casual sightseer to the adventure tourist. With the withdrawal of the Restricted Area Permit (RAP), tourism is poised for a major boom.

Investment Opportunities

Investment opportunities do exist in the following sectors-

• IT Sector
• Tourism
• Promotion of Bamboo Industries
• Biotechnology
• Agro & Food Processing Industries