For updated information, please visit www.ibef.orgDecember 2020

ASSAM

2

Executive Summary 3

Introduction 4

Economic Snapshot 9

Physical Infrastructure 15

Social Infrastructure 23

Industrial Infrastructure 26

Key Sectors 30

Key Procedures & Policies 36

Appendix 42

Table of Contents

3

Executive summary

2

3

4

• With its pleasant climate and scenic landscape, Assam is a popular tourist destination.• Assam is the most popular tourist destination among the north-eastern states.

Attractive tourism industry

Policy support• The state has adopted numerous investor-friendly policies to attract investments & accelerate industrial development.• North East Industrial Investment Promotion Policy & Industrial Policy of Assam facilitate business through fiscal

incentives & multi-year concessions to investors.• IT Policy and Tourism Policy of Assam have given special attention towards specific sector development

• Assam has the single largest tea growing area in the world, constituting around one-seventh of the global teaproduction. The state accounts for over 50% in the country’s overall tea production. During 2018-19, tea productionin the state stood at 701.35 thousand tonnes.

• The state houses Guwahati Tea Auction Centre (GTAC), one of the largest CTC tea auction centres of the world.

World’s single largest tea growing area

1Strong economy

• At current prices, the gross state domestic product (GSDP) of Assam was Rs. 4.09 lakh crore (US$ 58.47 billion) in2020-21.

• The GSDP of the state grew at a CAGR (in Rs) of 12.58% between 2015-16 and 2020-21.

Source: Government of Assam, PRS IndiaNote: Data is as per latest available information

4

INTRODUCTION

5

Assam fact file

Key Insights administrative districts: 33

398persons per sq kmPopulation density

15,300,000female population

DispurCapital

78,438 sq.km.geographical area

73.18%literacy rate

34,140,000total population

15,900,000male population

958Sex ratio

(females per 1,000 males)

• Assam is known for its tea, petroleum resources, Muga silk and bio-diversity.• The state has conserved the one-horned Indian rhinoceros from near extinction, along with the Pygmy hog, tiger and various species of

birds. It provides one of the last wild habitats for the Asian elephant.• Assam is becoming an increasingly popular destination for wildlife tourism. Kaziranga National Park and Manas National Park are

registered as world-heritage sites.• Assam is located in Northeast India. The state shares its borders with Arunachal Pradesh, Nagaland, Manipur, Mizoram, Meghalaya,

Tripura and West Bengal. The state shares international borders with Bangladesh, Myanmar, and the Kingdom of Bhutan.• Assamese & Bodo are the official languages. Bengali holds the official-language status in the 3 districts of the Barak Valley & is the 2nd

most spoken language in the state. Assam also has a number of schools with English as the medium of education.• The state is a gateway to Northeast India. Guwahati is the largest city of the state.

Source: Government of Assam, Census 2011

6

Advantage Assam

Policy and infrastructure support

• Assam is India’s gateway to theNortheast & acts as a vital linkfor trade with Southeast Asiancountries. It is well connected byrail, road, ports & airports.

• State Cattle and BuffaloBreeding Policy 2020 - Toachieve maximum levels ofproductivity from low productivecattles, cross-breeding/interbreeding withrecognised dairy breed wasdone

Avenues of investments• The state is rich in water resources & has vast tracts of

fertile land. Other potential areas of investment includepower & energy, mineral-based industries, tourism &crude oil refining.

• Total FDI inflows for Assam stood at US$ 8.19 millionbetween October 2019 and September 2020.

• Indo-Israeli Centre of Excellence for VegetablesProtected Cultivation will provide farmers with the latestIsraeli technologies to help maximise their incomes.

Rich resource pool• Assam is rich in natural

resources such as natural oiland gas, rubber, tea, andminerals such as granite,limestone and kaolin. Teaproduction in the state stood atnearly 701.35 thousand tonnesduring 2018-19 which is 53.55%of the total tea production inIndia during the same time.

• The state has a large skilledworkforce. A substantial portionof the state’s population (whichis in the age group of 15-25) iscomputer literate

Largest economy in Northeast India• GSDP grew at a CAGR of 12.58% between 2015-16 & 2020-21.• Assam is the largest economy in the Northeast region. Owing to its

relative proximity to the rest of the country & availability of qualityinfrastructure, the state offers a favourable environment forindustry.

• It is the largest economy in the North-East & is known for its largeindustries in the tea & petroleum sector. Assam has one of thelargest networks of higher education in the entire North East.

Source: Ministry of Statistics and Programme Implementation, News articles

7

State Vision

Source: Government of Assam

5

4

1 6

3

25 GSDP growth• Agriculture & industrial development

likely to drive growth

4 Healthcare• Healthcare infrastructure

development• Creation of health service

corporations for free supply ofmedicines

• Establishment of medical institutes

2 Industry and commerce• Emphasis on MSME sector• Infrastructure development &

establishing plastic, banana,bamboo & jute parks

• Skill development of unemployedyouth

3 Tourism• Making the state a preferred tourist

destination• Promote eco-tourism & river cruise

tourism; infrastructure development& beautification of historical places

6 Infrastructure• Connectivity by all-weather roads• Improvement of state highways &

major district roads• Improvement of power

infrastructure in the state

1 Agriculture• Promoting sustainable development

in agriculture• Use of technology and skill

development

8

Assam in figures

Assam’s Contribution to Indian Economy (2016-17)

Social Indicators

Physical Infrastructure in Assam

Industrial Infrastructure

Investments (as of September 2020)

GSDP as a percentage of all states’ GSDPIndia: 100.0 | Assam: 1.64

Per capita GSDP* (US$)India: 1,750.29 | Assam : 1,081.16

GSDP growth rate** (%)India: 10.80 | Assam : 10.55

Literacy rate (%)India: 77.7 | Assam : 85.9

Operational & Maintenance PPP projects (No.)India: 1,824 | Assam : 13

Installed power capacity (MW) (as of November 2020)

India: 3,74,199 | Assam : 1,761.34

Internet subscribers (million)* (as of June 2020)India: 749.07 | Assam : 14.46

Wireless subscribers (million)* (as of June 2020)India: 1,140.71 | Assam : 23.49

National highway length (km) (as of September 2019)India: 132,499.5 | Assam : 3,908.5

Cumulative FDI inflows from October 2019 to September 2020 (US$ million) India: 53.884.85 | Assam : 8.19

GSDP

Birth rate (per 1,000 population) (2018)India: 20 | Assam : 21.7

Airport (No.)India: 153 | Assam : 8

Note: GSDP, per capita GSDP figures are taken at current prices, FDI- Foreign Direct Investments, MW- megawatt*includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, PPP: Public-Private Partnership, SRS: Sample Registration System

9

ECONOMIC SNAPSHOT

10

Economic snapshot − GSDP

GSDP of Assam at current prices Per capita GSDP of Assam at current prices

At current prices, the Gross State Domestic Product (GSDP) ofAssam is Rs. 4.09 lakh crore (US$ 58.47 billion) in 2020-21.

The GSDP of the state grew at a CAGR (in Rs) of 12.58% from2015-16 to 2020-21.

At current prices, the state’s per capita GSDP was Rs. 130,970(US$ 1,874) in 2020-21.

The per capita GSDP increased at a CAGR of 12.58% between2015-16 and 2020-21.

Source: Directorate of Economics & Statistics of Assam, Ministry of Statistics & Programme Implementation, Central Statistics Office

34.5

2

37.9

3 44.7

6

46.2

9 52.0

3 58.4

7

2.26 2.

54 2.88 3.

24

3.64

4.09

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

2020

-21B

E

US$ billion Rs trillion

CAGR (In Rs) 12.58%

1,10

6

1,21

6 1,43

5

1,48

4 1,66

8 1,87

4

72,4

27

81,5

64 92,4

66

103,

704

116,

542

130,

970

0

20000

40000

60000

80000

100000

120000

140000

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

1800.0

2000.0

2015

-16

2016

-17

2017

-18E

2018

-19

2019

-20

2020

-21

US$ Rs

CAGR (In Rs) 12.58%

Note: *BE- Budget Estimate

11

Economic snapshot − NSDP

NSDP of Assam at current prices Per capita NSDP of Assam at current prices

The Net State Domestic Product (NSDP) of Assam was Rs. 2.62trillion (US$ 40.32 billion) in 2018-19.

The NSDP of the state grew at a CAGR (In Rs) of 12.04% from2015-16 to 2018-19.

At current prices, the state’s per capita NSDP was Rs. 82,078(US$ 1,174.39) in 2018-19.

The per capita NSDP increased at a CAGR (In Rs) of 6.85%between 2015-16 and 2018-19.

Source: Directorate of Economics & Statistics of Assam, Ministry of Statistics & Programme Implementation, Central Statistics Office

30.6

0

33.2

0 39.0

3

40.3

2

2.00 2.

23 2.52 2.

82

0

0.5

1

1.5

2

2.5

3

0.005.00

10.0015.0020.0025.0030.0035.0040.0045.00

2015

-16

2016

-17

2017

-18

2018

-19

US$ billion Rs trillion

929.

06

988.

67

1151

.03

1174

.39

6081

7

6633

0

7418

4

8207

8

0100002000030000400005000060000700008000090000

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

2015

-16

2016

-17

2017

-18

2018

-19

US$ Rs

CAGR (In Rs) 6.85%CAGR (In Rs) 12.04%

12

Economic snapshot − percentage distribution of GSDP

In 2018-19, tertiary sector contributed 48.05% to the state’s GrossState Value Added (GSVA) at current prices, followed by primarysector with a share of 28.21% and secondary sector with a share of23.74%.

At a CAGR of 13.99%, secondary sector recorded the fastest growthamong the three sectors from 2011-12 to 2018-19.

Between 2011-12 and 2018-19, primary sector expanded at a CAGRof 10.51% and tertiary sector grew at a CAGR of 12.97%.

Visakhapatnam port traffic (million tonnes)GSDP composition by sector

31.88%28.21%

21.59% 23.74%

46.53% 48.05%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2018-19

Primary Sector Secondary Sector Tertiary Sector

10.51%

12.97%

13.99%

CAGR

Source: Directorate of Economics & Statistics of Assam, Ministry of Statistics & Programme Implementation

13

Economic snapshot − FDI inflow & investments

72 15 1 5

10 2

137

6 122

405060708090

100110120130

FY01

-FY1

1

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

*

FY01

-FY2

0

Annual FDI Inflow

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Assam were valued at US$ 8.19million between October 2019 and September 2020.

Visakhapatnam port traffic (million tonnes)FDI equity inflow in Assam**

April 2000 - March 2020 (US$ million)

Source: Department of Industrial Policy & PromotionNote: ** - Including Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Assam and Tripura, * till September 2019

14

Economic snapshot − Assam’s export trend

Exports from the state stood at US$ 652.57 million in FY21*.

Assam exported key items such as tea, coal, coke and briquettes and other products.

In FY21*, the total tea exports from Assam accounted for US$ 472.97 million, which was 72% of the total export.

Source: Ministry of Commerce and Industry

Export Trend (US$ million)

395.

55

430.

02

382.

35

369.

76 436.

70

652.

57

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

FY16 FY17 FY18 FY19 FY20 FY21*

Composition of Key Items Exported from Assam (FY21*)

72.48%

7.46%

7.37%

1.28%11.42%

Tea Coal, Coke and Briquettes

Petroleum Products Cosmetics and Toiletries

Others

Note: * - until October 2020

15

PHYSICAL INFRASTRUCTURE

16

Physical infrastructure − Roads

The Assam State Transport Corporation (ASTC) has been providingstate road transport services since its establishment in 1970. Theroad network in Assam in terms of road density (road length perthousand sq km of all roads) is extensive.

Between 2016-17 to January 2020, 14,006 km of roads constructedby the Government.

As per state budget 2019-20, Rs. 500 crore (US$ 71.54 million) wasallocated for construction of roads under Asom Mala by next threeyears.

India’s longest bridge over the Brahmaputra river in Assam, BhupenHazarika Bridge, is 9.15 kms long. With the help of this bridge thetravel time between Assam and Arunachal Pradesh will reduce to 1hour as the distance will shrink by 165 kms.

The proposal of construction of bridge over Brahmaputra connectingPanbazar with North Guwahati has been approved by the Ministry ofFinance, Government of India with a proposed cost of Rs. 1,890crore (US$ 293.25 million). New Development Bank (NDB) will befunding this project. This is to be implemented by 2022.

In October 2020, Mr. Nitin Gadkari, the Union Minister for RoadTransport, Highways and MSMEs, laid foundation stones for thecountry's first multimodal logistic park in Assam. The park worth Rs.693.97 crore (US$ 93.87 million) would provide direct air, road, railand waterway connectivity to citizens. It will be established underthe government’s ‘Bharatmala Pariyojana’ initiative.

Road type Road length (kms)

National highways 3,908.5

State highways 3134.36

Major district roads 4413.03

Rural roads 37,030

Source: Ministry of Road Transport & Highways, Economic Survey of Assam 2017-18, State Budget 2020-21

Road length (2018-19)

17

Physical infrastructure − Railways

The state is well connected by the railway network. Within thestate, all major towns such as Dibrugarh, Tinsukia, Jorhat,Nagaon, Guwahati, Tezpur, Barpeta & Bongaigaon are wellconnected by the railway network.

The headquarters of the North-East Frontier Railways is locatedat Maligaon, on the outskirts of Guwahati.

Guwahati railway station is the only station in North East to runcompletely on solar power.

As of February 2019, Tourist Department of Assam promotes“Awesome Assam” by using three Northeast Frontier Railwaytrains.

Source: Maps of India

Source: Economic Survey of Assam, 2016-17, News Articles

18

Physical infrastructure − Airports

Assam has 8 airports including an international airport, Lokpriya Gopinath Bordoloi International Airport at Guwahati & domestic airports each atDibrugarh, Guwahati, Lakhimpur (lilabari), Jorhat ,Rupsi, Shella, & Tezpur.

Some of the tea gardens have their own air-strips & aircraft. Flights to & from the South East Asian cities are in the offering through the LGBInternational Airport at Guwahati.

Lokpriya Gopinath Bordoloi International Airport & Dibrugarh Airport are the highly popular airports in the state.

Airport

Aircraft movements (in no)

Passengers (in no.)

Freight (in MT)

2019-20 2020-21 2019-20 2020-21 2019-20 2020-21

Guwahati 30,596 11,237 38,07,585 9,33,349 14,604 8,635

Silchar 2,546 1,230 2,53,873 1,21,000 569 348

Lakhimpur (LILABARI) 576 358 13,643 5,365 0 0

Jorhat 584 258 84,654 18,825 0 11

Dibrugarh 3,518 1,747 3,46,268 1,74,620 663 416

Airport indicators (April-November)

Source: Airports Authority of IndiaNote: MT - Metric Tonnes

19

Physical infrastructure − Inland waterways

The Directorate of Inland Water Transport (IWT) and Central InlandWaterways Corporation of Assam operate water transport servicesalong the Brahmaputra and Barak rivers on a commercial basis.These services are used to transport passengers and goods acrossthe state & to West Bengal.

The chief goods that are transported include jute, coal, fertilisers,cement, machinery, forest and agricultural products. The presentcargo handling capacity of the fleet is nearly 10,000 metric tonnes.

Assam’s major river routes are along the Brahmaputra & Barakrivers, with a navigable length of 891 km and 121 km respectively. 7port locations are operational in the state for import & export to theKolkata & Haldia ports. The Brahmaputra river is known as theNational Waterway (NW) No.2

Government of Assam has started the project preparatory activitiesfor the World Bank funded Inland Water Project under the IWTDepartment at Rs. 975 crore (US$ 150.60) which will help realize thehuge untapped potential in this sector.

Source: Directorate of Inland Water Transport of Assam, ICD - Inland Container Depot

20

Physical infrastructure − Power

1,59

9.65

1,50

5.32

1,71

0.38

1761

.34

1,350.00

1,400.00

1,450.00

1,500.00

1,550.00

1,600.00

1,650.00

1,700.00

1,750.00

1,800.00

2017

2018

2019

2020

*

The Assam Electricity Regulatory Commission (AERC) acts as theregulator of the electricity sector in the State. Assam possesses animmense potential of power.

As of November 2020, Assam had a total installed power generationcapacity of 1,761.34 MW, of which 1253.64 MW was under centralutilities, 73.33 MW was under private utilities and 434.37 MW wasunder state utilities.

Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) all thevillages of the state (excluding uninhabited and grazing reserve) andhave been electrified.

The Government has set a target to generate 6500 MW power in thestate by 2030.

Under State Budget 2020-21, Rs. 2,498 crore (US$ 357.42 million)has been allocated to the department.

Government introduced Jyotisman Asom scheme under Budget2020-21, to provide free electricity to all households whose monthlyelectricity consumption is up to 30 units.

Visakhapatnam port traffic (million tonnes)Installed power capacity (MW)

Source: Central Electricity AuthorityNote: MW - Mega Watt

Installed power capacity as per the source (MW) (as of November 2020)

Hydropower 489.58

Thermal Power 1192.92

Renewable Energy 78.84

* - as of November 2020

21

Physical infrastructure − Telecom

Telecommunication network is one of the fastest growing sectors inthe state. Individuals & industries alike face no problems in procuringtelephone & other telecommunications facilities. The penetration oflandlines as well as cell phone telephony is high & is steadilyincreasing.

According to Telecom Regulatory Authority of India (TRAI), Assamhad ~23.48 million wireless subscribers and 112,479 wirelinesubscribers, as of June 2020.

By end of September 2020, 3.89 million subscribers had submittedrequests for mobile number portability in Assam since its inception.

Telecom Infrastructure (as of June 2020)

Wireless subscribers 23,487,441

Wire-line subscribers 112,479

Teledensity (in %) 67.83

Internet subscribers (in million) 14.46

Performance status of Bharat Net Project

Service-ready GPs (November 2020) 1624

Source: Telecom Regulatory Authority of, India

22

Physical infrastructure − Urban development

Under the smart city program, the state will be developing city of Guwahati. The cities proposed under AMRUT include Guwahati, Silchar,Dibrugarh and Nagaon. As per the State Budget 2018-19, US$ 252.24 million has been allocated to urban development department.

In January 2018, plans were announced to develop five dedicated cycling corridors in Guwahati under the Smart City programme. As of 2018, 9projects are going on in Guwahati under the Smart City Mission.

Schemes active under the department are:-

− Urban Infrastructure Development Project,

− Jawaharlal Nehru National Urban Renewal Mission (JNNURM),

− National Urban Livelihoods Mission (NULM),

− Pradhan Mantri Aawas Yojana - Urban,

− Urban Rejuvenation Mission - AMRUT,

− Swachh Bharat Mission (Urban) etc.

The West Guwahati Water Supply Scheme, aimed at covering a projected population of 583,000 lakh by 2025, fulfilling a drinking water demandof 107 million litres per day (MLD), is expected to be partially commissioned by December 2018. The East Guwahati Water Supply Scheme isexpected to be commissioned by end of 2021. The North Guwahati Water Supply Scheme is expected to be commissioned by end of 2019 and isexpected to cover a population of 1,47, 809, fulfilling the water demand of 37.1 MLD. The Central Guwahati Scheme is expected to cover apopulation of 1,004,604, fulfilling the water demand of 191 MLD by 2025.

Source: JNNURM, Ministry of Urban Development, Government of India

Smart cities in Assam

Cities Population Area (sq. Km) Literacy rate

Guwahati 962,334 216 91.47%

23

SOCIAL INFRASTRUCTURE

24

Social infrastructure − Education

Assam has a literacy rate of 72.19, the male literacy rate is 77.85% &the female literacy rate is 66.27%. In 2016-17, the state had 56,520total schools comprising 40,465 primary schools, 11,741 middleschools & 4,314 high schools.

In 2020-21, Assam had a total of 68 AICTE-approved institutes.

Under the State Budget 2019-20, Rs. 50,000 (US$ 700) will beprovided as subsidy for every educational loan which is sanctioned bythe banks.

In collaboration with Rashtriya Madhyamik Shiksha Abhiyan andUNICEF, 2 Mobile Science Laboratories have been established in thestate for providing science practical classes to students.

Under State Budget 2020-21, Government announced setting up offive polytechnics, seven new Government colleges, two medicalcolleges, one ayurvedic college, one new law college and newuniversity Sati Sadhoni Rayjik Vishwavidyalaya.

In September 2020, Union Minister of Agriculture & Farmers’ Welfare,Rural Development, Panchayati Raj & Food Processing Industries,Mr. Narendra Singh Tomar inaugurated the campus of the new IndianAgricultural Research Institute, Gogamukh, Assam. The institute aimsto provide an impetus to develop agricultural education and researchin the Northeast.

In August 2020, the Doordarshan (DD) Assam channel was launchedto boost the reach of local news/content; provide online education inregional languages across states.

Source: National University of Education Planning and Administration, Plan Assam, Niti Aayog, Economic Survey 2017-18, All India Survey on Higher Education, 2017

AICTE Approved Education Statistics (2020-21)

Undergraduate Postgraduate Diploma

Total Institutions 26 25 36

Total Intake 5585 1924 5430

Faculties 1805 327 127

In December 2020, the state government announced to convert allstate-run madrasas and Sanskrit tols (schools) into general institutesto make education ‘secular’.

A bill would soon be tabled to implement the cabinet’s decision. Mr.Himanta Biswa Sarma, the Education Minister, stated that the ‘HighMadrasa Examination’ will not be conducted in Assam from 2022.

Under the Assam Secondary Education Board (SEBA), there are 198High Madrasa schools and an additional 542 such institutions underthe Assam Higher Secondary Education Council (AHSEC), includingfour Arabic colleges, 138 senior madrasas and 230 pre-seniormadrasas.

25

Social infrastructure − Health

Assam has 37 District Hospitals, 22 Sub-Divisional Hospitals, 1,661Primary Health Centres (PHCs), 321 Community Health Centres(CHCs) and 5,845 Sub-Centres as of May 2020.

As per the State Budget 2020-21, the Government allocated US$876.66 million for health and family welfare department.

As per budget 2018-19, girls between the ages of 12 -20, and whosefamily annual income is less than Rs. 5 lakh (US$ 7,757), can availan annual stipend of Rs. 600 (US$ 9.31). They can use this amountfor purchase of sanitary napkins and other quality menstrualproducts. The scheme has been re-launched under Budget 2020-21with an allocation of Rs. 25 crore (US$ 3.55 million).

According to State Budget 2019-20, over 22,000 beneficiaries havebeen provided relief under the Atal-Amrit Abhiyan health insurancescheme which has been allocated Rs. 200 crore (US$ 28.62 million)for FY20.

National Health Mission (NHM) Assam is in the process ofupgrading, construction and strengthen of various tiers of publichealth facilities at an overall cost of Rs. 369 crore (US$ 57.25million).

Health infrastructure (as of May 2020)

District hospitals 37

Sub-divisional hospitals 22

Primary health centres 1,661

Sub-centres 5,845

Community health centres 321

Source: State Budget 2020-21, 2019-20

Key Health Schemes Launched by Assam Government ‘Maram’ (Assamese for financial help to patients) ‘Mamata’ (Assamese for new born and mothers) ‘Majoni’ (Assamese for little girls)

• A newborn girl child gets a fixed deposit instrument worth US$ 109.

• A would-be mother gets US$ 10.4 for each of the first two check-ups.

‘Morom’ (Assamese for compassion) • Patients in medical college hospitals receive US$ 1.6 per day for

seven days.• Patients in civil hospitals get US$ 1.04 per day for five days.

‘Mamoni’ • Pregnant women are encouraged to undergo three ante-natal

checkups to detect any danger signs during pregnancy.• During the 2nd & 3rd ante-natal checkups, pregnant women

receive US$ 18.4 for expenses related to nutritional food & supplements.

26

INDUSTRIAL INFRASTRUCTURE

27

Industrial Infrastructure … (1/3)

Source: Department of Industries & Commerce Government of Assam

To facilitate infrastructure support, the State Industries & Commerce Department has sponsored 3 projects as industrial growth centres atChariduar, Matia & Chaygaon-Patgaon.

Chariduar Growth Centre: Cost of US$ 4.7 million shared by central and state Government.

Matia Growth Centre: Cost of US$ 4.0 million shared by central and state Government.

Chaygaon-Patgaon Growth Centre: Cost of US$ 3.0 million shared by central and state Government.

Assam's proximity to SAARC countries like Bangladesh, Nepal and Bhutan gives it the investment potential considering the advantage ofborder trade with these countries. Assam has 11 integrated infrastructure development centres across the state of which 2 are underconstruction. The Government of India has approved 2 more projects under MSE-CDP at Pathsala (Barpeta) & Moran (Dibrugarh).

As per Budget 2020-21, Rs. 219 crore (US$ 31.33 million) has been allocated to the Department of Industry and Commerce.

During 2016-17 and 2019-20, 20,971 MSME (micro, small and medium enterprise) and 105 large industrial units were set up in the state.

28

Industrial Infrastructure … (2/3)

Source: Government of Assam website (www.assam.gov.in), Software Technology Parks of India, Guwahati, Assam Industrial Development Corporation Ltd, Assam Small Farmers' Agri-Business Consortium, Guwahati BioTech Park

Infrastructure Description

Software Technology ParkA software technology park has been set up at Guwahati, near the Lokpriya Gopinath Bordoloi International Airport, by the Software Technology Parks of India Limited (STPI).

Food Processing ParkIndia’s Government has sanctioned a food processing park with a total project cost of US$ 1.2 million. The park is being set up near Chaygaon in the district of Kamrup (rural). The implementing agency is Assam Small Industries Development Corporation Limited.

Agri-Export Zone for Ginger

India's Government has sanctioned an agri-export zone for the state for fresh and processed ginger. The nodal agency for implementing this project is Assam Industrial Development Corporation Limited. The zone is located in eight districts: Kamrup, Nalbari, Barpeta, Darrang, Morigaon, Nagaon, Karbi Anglong and North Cachar (NC) hills of Assam.

Biotech ParkConsidering the importance of biotechnology, an integrated park to provide all infrastructural and other related services has been developed in Guwahati. The Guwahati Biotech Park undertakes research activities in biotechnology. The park was inaugurated on 25 February 2011.

Tea ParkA tea park is being set up at Chaygaon by AIDC in Kamrup District in an area of approximately 100 acres of land. The park would provide facilities for blending, storage and transshipment of Assam tea for the world market.

29

Industrial Infrastructure … (3/3)

Source: Government of Assam website, Assam Industrial Development Corporation Ltd, Economic Survey of Assam, 2014-15

Infrastructure Description

Export Promotion Industrial Park

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$ 3.0 million. The total area of the park is 68.1 acres. AIDC has constructed 3 industrial sheds and allotted them to 3 industrial units. There are 38 companies in the park, offering direct employment opportunities to 4,000 people & indirect employment opportunities to about 12,000 people.

Industrial growth centres

Industrial growth centres with supporting infrastructure have been set up at Balipara in the Sonitpur district and Matia in Goalpara. The Matia industrial growth centre has been set up with a total project cost of US$ 4.5 million & spans 700 acres. The Balipara industrial growth centre has been set up with a total project cost of US$ 5.3 million and is spread across 400 acres.

Integrated Infrastructure Development (IID) Centres

IID centres have been planned at Parbatpur, Serphangguri, Dalgaon, Demow, Bhomoraguri, Malinibeel, Dahudi, Silapathar, Rangia, Banderdewa & Titabar. The projects at Bhomoraguri, Dalgaon, Malinibeel, Titabar, Demow, Dahudi, Banderdewa, Silapathar and Rangia are already completed & the other projects are also on the verge of completion.

Border Trade Centres (BTC)

BTCs are located at Mankachar (Dhubri), Sutarkandi (Karimganj) & Darranga (Kamrup).

30

KEY SECTORS

31

Key sectors − Tea … (1/2)

Tea occupies an important place among the agriculture-basedindustries in Assam. About 17% of the workers of Assam areengaged in the tea industry. There are more than 765 tea gardens inthe state of Assam. Between April 2020 and October 2020,production of tea in the state stood at 502.30 million kgs, contributing52% to the total tea production in India.

In September 2020, Assam govt. announced four new schemes fortea gardens. Those schemes are as follows:

o Tea garden owners who have taken a working capital loan, withan overall limit of Rs. 20 lakh (US$ 27.05 thousand), will receive a3% interest subsidy per year.

o The state government will offer a subsidy of Rs. 7 (US$ 0.095)per kg to owners producing/growing 'orthodox' tea. Currently, theTea Board of India offers a Rs. 3 (US$ 0.041) subsidy per kg on'orthodox tea', making it an overall subsidy of Rs. 10 (US$ 0.14)per kg.

o If a tea garden owner buys new equipment to produce 'orthodox'tea, the state government would support owners by offering a25% capital subsidy.

o Assam's tea gardens will be given an agricultural income taxholiday for three years.

Tea production in Assam (million kgs), August 2020-October 2020

86.55107.79 97.83

0.00

50.00

100.00

150.00

Aug

20

Sep

20

Oct

20

Source: Tea Board of India, State Interim Annual Financial Statement and Demand for Drafts, 2016-17, DGCIS Analytics

Note: *-Provisional

Tea exports from Assam (US$ million)

172.23 305.8 213.82 312.46

1781.85

2016

-17

2017

-18

2018

-19

2019

-20

2020

-21

32

Key sectors − Tea … (2/2)

Key players

Established in 1972, the company is a wholly owned undertaking of the Government of Assam.

The company has 14 tea estates that are spread in over 13,000 hectares of land in six districts ofAssam. Based in Dispur, the firm provides direct employment to more than 16,000 workers.

Formed in 1839, the company operates 15 factories and 15 tea estates and gardens spread over14,000 hectares. It was the first to have an organic tea estate (Rembeng Estate) in Assam.

The firm has over 32,000 employees and produces around 15 million kg of tea annually.

The company was established as Assam Frontier Tea Limited in 1889. It has 17 estates spread over50,000 acres in Assam, which together produce around 25 million kg of tea.

Besides domestic auction, the company sells directly to international customers such as Unilever,Tetley, Tazo and Starbucks.

The known brands are Typhoo, Mantra and Maha Mantra.

The company was established in 1949 and produces over 65 million kg of tea every year, of whicharound 30 million kg is from its 23 tea estates in Assam.

Tez, Premium Gold and Jaago are the packet tea brands.

Source: Company Website

Assam Tea Corp Ltd

Assam Company India Ltd

Williamson Magor Group

Apeejay Tea Ltd

33

Key sectors − Agriculture and Allied sectors

Source: Ministry of Agriculture Department of Agriculture & CooperationNote: @ - Includes Fruits, Vegetables, Spices, Honey, Plantation, Aromatic and Flowers, * - 3rd Advance Estimates, P -Provisional

An agrarian economy since time immemorial, agriculture is the majorcontributor to the state economy. It also provides livelihood to asignificant proportion of the population of the state. The agro-climaticconditions support cultivation of a wide range of horticultural crops,including plantation crops and various fruits and vegetables, flowers,spices, medicinal and aromatic plants, nut crops and tuber crops.

Pineapple, banana, cauliflower, Broccoli, rose, rice, papaya,sugarcane, turmeric, jute, potato and Bougainvillea are among highyielding varieties of horticulture crops in Assam. It also includestraditional fruits like Carambola, Leteku, Paniyal Thekera, Au tengaetc.

In 2019-20, the total production of horticulture crops in the state wasexpected to be 6876.40 thousand metric tonnes and area underproduction was 704.82 thousand hectares. In 2019-20, the totalproduction of vegetables and fruits in the state was estimated at3673.88 thousand metric tonnes and 2562.30 thousand metrictonnes, respectively.

In November 2020, Assam, in collaboration with Israel, announcedplans to set up a Rs. 10 crore (US$ 1.35 million) project to boostagriculture in the state.

YearArea

(‘000 Ha)Production (‘000 MT)

Fruits 168.87 2562.30

Vegetables 312.97 3673.88

Spices 104.61 331.01

Plantation 108.62 214.64

Aromatics &Medicinal 4.55 0.19

Honey - 1.15

Area and production of horticulture crops (2019-20)

34

Key sectors − Tourism

Assam is popularly known for its natural beauty and pristine teagardens, attracting photographers from all over the world.. Besidesthe existing national tourism circuit within Assam, the state plans toadd several thematic and eco-tourism circuits. The subsidiary andregional circuits would boost domestic tourism.

Due to the high potential for development of wildlife tourism in thestate, the central Government has increased the funds under thecentrally sponsored “Integrated Development of Wildlife Habitats”scheme towards the state to US$ 428 thousand for the year 2017-18.

Under the Swadesh Darshan Scheme, amount sanctioned by theGovernment as of March 2017, for a heritage circuit was US$ 15.26million. Under the Prasad Scheme, for the expansion of Kamakhyatemple along with pilgrimage destinations in and around Guwahati,the Government sanctioned US$ 5.19 million during the same period.

In 2019 (as of December 2019), 4.7 million tourists arrived in Assam.

Under State Budget 2020-21, Government allocated US$ 18.31million to the department.

Total tourist arrivals in Assam (‘000)

4,8355,492 5,643 5,935

4,711

21.7 24.7 26.3 31.7

25.7

- 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0

2015 2016 2017 2018 2019

Domestic Foreign

363.

34

226.

53

215.

48

231.

36

135.

14

427.

97

0.0050.00

100.00150.00200.00250.00300.00350.00400.00450.00

2011-12 2012-13 2013-14 2014-15 2015-16 2017-18

Source: Ministry of Tourism, Government of India

Funds released under the scheme “Integrated Development of Wildlife Habitats” (in US$ thousand)

35

Key sectors − Sericulture

3,81

1

4,86

1

5026

4,49

4

-

1,000

2,000

3,000

4,000

5,000

6,000

FY17

FY18

FY19

P

FY20

P*

Source: Ministry of Textiles, Government of India

The climate & general environment of Assam is well suited forsericulture. Traditional varieties of silk cultured in the state includeEri, Muga & mulberry. Muga silk, known for its fine sheen & goldencolour, is used by the local silk-weaving industry, which hascontributed to the development of Muga in the state.

Assam enjoys global monopoly in terms of Muga silk (also known asgolden silk) production. The state accounts for around 95% of globalMuga production. Moreover, Assam is the country’s major Eri silkproducer (accounts for 65% of the country’s Eri silk production). SilkProduction in the state* for 2018-19(P) is 5,026 MT.

For the development of Eri and Muga silk industries in the state, theGovernment will take up Assam Silk Outreach Mission from 2016 atan estimated cost of US$ 366.63 million for a total period of 10 years.By 2025, this mission aims to produce 1 million kg of Muga silk & 10million kg of Eri silk. Further, in 7 districts of the state, IntegratedSericulture Development Project is being applied, out of which 3districts are for Eri whereas 4 districts are for Muga.

Under State Budget 2020-21, Government allocated Rs. 289 crore(US$ 41.35 million) for the Handloom Textiles and SericultureDepartment.

Production of raw silk (in MT)

Note: * Assam and Bodoland, P - Provisional, *- till January 2020

36

KEY PROCEDURES AND POLICIES

37

Key approvals required … (1/2)

List of Approvals and Clearances Required Departments to be Consulted Estimated Time Taken (Days)

Incorporation of the Company Registrar of Companies

Micro and small-scale enterprises: Same day Other applications: Within 90 days Registration of new units under VAT Act: Within 15 days

of the receipt of application

Allotment of land/shed

A committee headed by Managing Director, Assam Industrial Infrastructure Development Corporation (AIIDC)/Assam Industrial Development Corporation (AIDC)/Assam Small lndustries Development Corporation (ASIDC), would allot land/shed of up to one acre under their respective control within the prescribed time period.

The land requirement beyond 500 sq m would be allotted by a state-level committee governed by the Principal Secretary/Commissioner and Secretary, Industries and Commerce Department, with representatives from the Finance Department, Government of Assam, and Revenue Department, Government of Assam.

Allotment of land up to the limit of one acre and shed up to 500 sq m in industrial estates/ industrial areas/ IIDC/ growth centres, etc: Within 30 days

Others: Within 60 days

38

Key approvals required … (2/2)

The State Investment Promotion Board (SIPB), headed by the Chief Minister, has been constituted to act as the final authority in matters of policyconcerning industrial development of the state.

The board meeting is held once in every quarter of the year to review the industrial and related policies of the state, and to oversee the process ofsimplification of Government rules and regulations for rapid industrial development.

List of Approvals and Clearances Required Departments to be Consulted Estimated Time Taken (Days)

Power Assam Electricity Regulatory Commission Low-tension connection: 30 to 107 days High-tension connection: 34 to 114 days Extra-high-tension connection: 197 days

Pollution Pollution Control Board Non-polluting industries classified as green category: No approvals required

Sanction of incentives/concessions

District-level committee (for micro enterprises) State-level committee (for small-scale undertakings) AIDC committee (for medium- and large-scale

undertakings)

Within 90 days

39

Cost of doing business in Assam

Cost Parameter Cost Estimate Source

Hotel costs (per room per night) US$ 40-150 Leading hotels in the state

Residential Space Rent(Per sq ft per month) US$ 0.14-0.29 Industry sources

Power Cost (per kWh) Commercial: US$ 0.10Industrial: US$ 0.06-0.08 Assam Electricity Regulatory Commission

Labor cost (minimum wages per day)

Unskilled: US$ 3.0Skilled: US$ 5

Ministry of Labour and Employment, Government of India

Note: kWh: kilo-Watt hour

40

Contact list

Agency Contact Information

Assam Industrial Development Corporation Ltd

R.G Baruah Road, Guwahati-781024 Phone: 91-361- 2201215/2202216 Fax: +91 361 2200060 E-mail: aidcltd@gmail.comWebsite: www.aidcltd.com

Assam Small Industries Development Corporation Ltd

Bamunimaidan, Guwahati-781021 Phone: 91- 361- 2550 264/2550 265

Assam Hills Small Industries Development Corporation Ltd

Dilajee, District Karbi AnglongDiphu - 782460Phone: 91- 3671- 272 648

- Assam Agro Industries Development Corporation Ltd

G.S. Road,Khanapara, Guwahati - 781 022Phone : 0361 2332215, 2333877

Assam Financial Corporation

Vittiya Bhavan, M.S RoadPaltanbazaarGuwahati - 781008Phone: 91-361-2739839/2633658 E-mail: afcghy@gmail.comWebsite: www.afconline.gov.in

41

State acts and policies…(1/2)

State Cattle and Buffalo Breeding Policy 2020 To achieve maximum levels of productivity from low productive cattles, cross-breeding/interbreeding

with recognised dairy breed was done01

Biotechnology Policy 2018-2022 To promote education and research & development in biotechnology and allied areas

To promote employment generation through biotechnology application for enhancement of productionand growth in agriculture and allied industries.

02

Universal Service Obligation Fund (USOF) Scheme• Under the ‘Comprehensive Telecom Development Plan’ (CTDP) for the Northeastern

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.

• The project involves providing mobile coverage to 2374 uncovered villages (1683 in Arunachal Pradesh and 691 in two districts of Assam) at an implementation cost of ~Rs. 2,029 crore (US$ 274.44 million) over five years

Source: Chandigarh Administration, Invest Uttarakhand

03

Read more

Read more

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42

State acts and policies…(2/2)

Paryatan Sanjeevani Scheme Loan up to Rs. 20 lakh (US$ 27.05 thousand) with interest subsidy to entrepreneurs to revive the tourism

industry in the state.04

Infrastructural Development of the Border Outposts (BOPs) Scheme The state government will launch a scheme to boost the infrastructure of ‘Border Out Post’ (BOP),

wherein 50 BOPs will be modified in the first step of the scheme and ~Rs. 100 crore (US$ 13.53 million)will be allocated for the purpose. Other state BOPs will subsequently be included under the scheme.

05

Source: Chandigarh Administration, Invest Uttarakhand

Read more

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43

APPENDIX

44

Sources

Data Sources

GSDP (state) Directorate of Economics & Statistics of Assam, Central Statistics Office

Per capita GSDP figures Directorate of Economics & Statistics of Assam, Central Statistics Office

GSDP (India) Directorate of Economics & Statistics of Assam, Central Statistics Office

Installed power capacity (MW) Central Electricity Authority

Wireless subscribers (No) Telecom Regulatory Authority of India

Internet subscribers (Mn) Telecom Regulatory Authority of India

National highway length (km) NHAI & Roads and Building Department

Airports (No) Airports Authority of India

Literacy rate (%) Census 2011

Birth rate (per 1,000 population) SRS Bulletin, 2017

Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry and Internal Trade

Operational PPP projects (No) DEA, Ministry of Finance, Government of India

45

Exchange Rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.29

2007-08 40.24

2008-09 45.91

2009-10 47.42

2010-11 45.58

2011-12 47.95

2012-13 54.45

2013-14 60.50

2014-15 61.15

2015-16 65.46

2016-17 67.09

2017-18 64.45

2018-19 69.89

2019-20 70.49

Source: Reserve Bank of India, Average for the yearNote: As of December 2020

Year Rs. Equivalent of one US$

2005 44.11

2006 45.33

2007 41.29

2008 43.42

2009 48.35

2010 45.74

2011 46.67

2012 53.49

2013 58.63

2014 61.03

2015 64.15

2016 67.21

2017 65.12

2018 68.36

2019 69.89

2020* 74.18

46

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