“เฆชเฆฅเฆพเงฐ! เฆคเงเฆฎเฆพเงฐเง เฆธเงเฆฌเงเฆเงเฆคเฆฟ เฆเฆเง, เฆคเงเฆฎเฆฟ เฆเงเฆจเงเฆฌเฆพ เฆเฆฆเฆฟเฆคเฆฎ เฆฎเฆพเฆจเงเฆนเงฐ เฆธเฆเฆเงเงฐเฆพเฆฎเงฐ เฆเฆคเฆฟเฆนเฆพเฆธ เฆเงฐเง เฆธเฆญเงเฆฏเฆคเฆพเงฐ เฆธเงเฆคเงฐเง เฆธเงเฆคเงฐเง เฆเฆเงเฆเฆพ เฆจเฆฟเงฐเงเฆฃเฆฏเฆผ-เฆธเงเฆคเงเงฐเฅค”
The above lines from a poem by famed Assamese author Ram Gogoi means – “Oh, field! You too have recognition, you symbolize history of struggle of ancient man and you are a determinant to every step of civilizational progress.” Indeed, ever since the arrival of Ahoms in 1228 AD to this land of Brahmaputra and Barak, of enchanting hills and lush greens, Assam has grown culturally, economically, and socially. Ancient Sanskrit literature mentions the names โPragjyotishaโ (meaning City of Eastern Astrology) and โKamrupaโ (where Kamdev regained his Rupa or form) โ both of which signify the rich cultural and religious heritage of Assam.
Assam has seen its share of turmoil over last few decades. Right from the Assam Movement (1979-1985) that saw protests against illegal immigrants, to the Assam Accord being signed on 15th August 1985, the State has gone through a roller coaster journey. Today, the State has 33 districts, and is the most populous State in N-E India.
Assam a cornerstone to โAct East Policyโ
Ever since BJP assumed the mantle of governance at the Center in 2014, the erstwhile โLook East Policyโ, that was enunciated in 1991 by PM Narasimha Raoโs government, was made more action-oriented and outcome-based through โAct East Policyโ. A more proactive role in East Asia as envisaged under the policy required NE India to play a pivotal part in this. A sustained focus that ensued by Central Gov on NE India led to a gradual turnaround of this territory, with Assam benefiting a great deal too. The 2021 Assembly elections saw BJP securing 60 out of 126 seats, with a vote shareof 33.6%. NDA at 75 seats comfortably won.
Last decade has seen the โdouble engine governmentโ of NDA, at the State and Centre, lead to an unprecedented development for the region. From economy to empowerment of women, social security to secular fabric, the State has witnessed holistic growth. In the first of a three-part series, I will focus on how the State has made a turnaround to its economy, courtesy the dual prowess of BJP at Center and State.
Economic indicators have improved over last decade
Assamโs economy is currently ranked as 3rd fastest growing economy in the country. The Stateโs GSDP has grown 113% from 2020-21 to 2024-25, reaching โน7.25 Lakh Crore. From 2012-13 to 2021-22, the Stateโs real GSDP has grown at an average rate of 6.3%, which is higher than the national average of 5.6 %.
Capital expenditure has more than doubled, from โน12,000 Cr in 2020-21 to โน26,000 Cr in 2024-25. It is interesting to note that the Stateโs nominal per capita income as a ratio of Indiaโs nominal per capita income had declined steadily over the years, until 2014 โ post which the ratio has increased slowly.
It is noteworthy that prior to 2014, Assam received only โน1.27 Lakh Crore as devolution grants and grant-in-aid, that has now increased to โน4.49 Lakh Crore. This goes to show the focus present day Central Gov has on Assam and N-E in general. To promote greater investments, 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.
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. Also, Industrial growth centres with supporting infrastructure have been set up at Balipara in the Sonitpur district and Matia in Goalpara, at an estimated cost of US$ 4.5 million and US$ 5.3 million respectively.
The tenets of โSabka Sath, Sabka Vikasโ, that drive GoIโs actions, entails a focus on development of all sectors. No better example of same than Assam, where sectors spanning from Agriculture and Manufacturing, to Real estate and Banking, have shown impressive growth over last decade.
One key enabler to investments has been investor summits like Advantage Assam Summit, that had its first edition in 2018. From then on, till Summit 2.0 that was held in February 2025, the Stateโs economy has grown from โน2.75 Lakh Crore to โน6 Lakh Crore, being fueled by growth across sectors.
Key sectors have flourished Setting up of Industrial parks has aided growth too, notable ones being as below:
| Name of the park | Destination (District) | Departments | Project cost |
| Plastic Park | Tinsukia | Deptt. of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India | โน93.65 million (US$1.12 million) ; |
| Means of Finance: | |||
| Department of Chemical & Petrochemicals, Govt. of India: โน40 million (US$480,000) | |||
| and | |||
| Industries & Commerce Department, Govt. of Assam: โน53.65 million (US$640,000) | |||
| Mega Food Park | Nalbari | Ministry of Food Processing Industry | โน75.98 million (US$910,167.72) |
| Bamboo Technology Park | Kamrup | Ministry of Commerce & Industry | โน62.28 million |
| (US$746,141.09) | |||
| Jute Park | Nagaon | Ministry of Textile | โน49.57 million |
| (US$594,636.12) | |||
| Tea Park | Kamrup(R) | State Government | โน35.32 million (US$423,494.64) |
Crude Oil and Natural Gas
Assam accounts for 14.3% of Indiaโs total crude oil production. For the period 2019-20 to 2022-23, royalty contributions6 from crude oil production amounted to โน19, 291.17 Crore, while that from Natural gas totaled โน1,851.12 Crore.
Several development initiatives have been announced aimed at enhancing Assamโs position in the energy sector. These initiatives include the Numaligarh Refinery Expansion Project, the North East Gas Grid, the Paradip-Numaligarh Crude Pipeline, the establishment of Ethanol Plants including the launch of NRLโs Plant to produce ethanol from bamboo.
In 2023, Vedanta Ltdโs Cairn Oil & Gas, Indiaโs largest private oil and gas exploration and production company, started test production from its Hazarigaon field in Assam, becoming the first company in the countryโs northeast to commence gas flow from a Discovered Small Field (DSF) block.
Renewable Energy
Assam has made significant strides in green energy objectives, and several solar power projects have been launched across the state. With a target of producing 1,000 MW of electricity over the next three years, Assam aims to emerge as a hub for renewable energy.
Aligning with Sustainable Development Goals, Assamโs solar policy, formulated in 2017, encourages the deployment of grid-connected solar power plants on the rooftops of various establishments, promoting eco-friendly electricity generation and reducing dependence on fossil fuels.
Emerging Semiconductor Hub
The Assam Electronics (Semiconductor, etc.) Policy, 2023, has outlined guidelines around investments in Compound semiconductors, Silicon Photonics Sensors Fab, and Semiconductor Assembly, Testing, Marking, and Packaging facilities. Aside of attractive incentives, an additional 40% of Capex assistance will be provided by State Gov.
In March 2024, PM laid the foundation of Tata Groupโs โน27,000 Cr indigenous โSemiconductor Assembly and Test Facilityโ in Jagiroad. The facility is expected to commence partial operations by 2025 and will be capable of producing 48 million chips daily. ย ย
Investor-friendly policies of Assam
The policy environment has been conducive post 2014 as well. One example being the Cess Utilisation Policy for small tea growers declared on 30th May, 2015, that has enabled small and marginal tea growers, as also facilitated welfare of tea laborers. The Industrial and Investment Policy of Assam, 2014 has laid down fiscal incentives for investors in Assam, that includes pointers like:
Tax Exemption – Includes Value Added Tax exemption, Entry Tax exemption, Luxury and Tax Exemption
Subsidy on quality Certification/Technical know how
20% State Capital Subsidy on cost of PV Modules upto 20 KW
Assam key to Viksit Bharat
As the State targets USD 143 billion of economy by 2030, it also holds the added responsibility of being the largest State in NE India. Through the 2023 modification of the Industrial and Investment Policy (IIPA) 2019, Assam has secured investments of โน133.64 billion (US$1.6 billion) and 17,800 jobs in the last 14 months. The Assam cabinet has accepted 21 applications under the Industrial and Investment Policy of Assam (IIPA), 2019, and 14 MoUs have already been inked with companies such as PepsiCo India, Star Cement, Jericho Chemicals, and others. All of this at a breakneck pace!
As 2026 dawns near, and Assam gets ready to elect 126 members of its Legislative Assembly yet again, it remains to be seen if the Gateway to North-East continues its economic growth trajectory with the kind of astute governance witnessed over past decade, or the State dials back down to the erstwhile era of Naxalism, insurgency, and instability.
2026 will decide if โAโ for Assam can still hold the key to Viksit Bharat 2047!
