Assam :industrial development

The Assam economy and development depend on the production of the state. The economy is prevalently agrarian in nature. The government makes continuous efforts to develop the already existing agrarian economy and to improve the other sectors of the economy in the state of Assam.

Almost 63 percent of the society of Assam earns its living from the agricultural sector. The state is reputed all over the world for its production of tea. The state produces 15 percent of the tea produced in the world. A large section of the labor force of the state is employed in the tea estates of Assam that cover large areas of the state. The other agricultural produce involves rice, sugarcane, pulses, potatoes and jute. Fruits like mangoes, bananas, pineapple and guavas are also produced in the state.

The secondary sector of the economy comprises of the industries in Assam with large and medium scale productions. Agro based industries prevail in the state coupled with the tea industry that has a major contribution to the economy of the state of Assam. Other industries include the petroleum industry with one of the oldest oil ventures of the world situated in Digboy. The state also earns revenue from the mining industry that produces the four important industrial minerals of coal, limestone, sillimanite and oil.

Some of the other industries of the state are mentioned below:

  • Fisheries
  • Sericulture
  • Forest and wood industry
  • Chemicals and fertilizers industry.
  • Handloom and textile industry


Agriculture in Assam depends on the availability of proper funds. Banks ensure that the loans are available to the agricultural sector at easy interest rates. Infrastructure of the state supports the proper marketing of the produce of the agricultural sector.

The Assam Agriculture faces certain problems due to floods in the region. The government attempts to resolve these problems and to support the sector to achieve optimal production in agriculture in the state.


In Assam, Social Banking policies are spearheaded by the burgeoning network of Scheduled Commercial banks act as a buttress to the core sectors of the economy. The Regional Rural Banks that are fast proliferating through the state are an offshoot of the Scheduled Commercial Banks.

The state’s diversified banking system is classified and grouped under the following heads:

  • State Bank of India and its Associates
  • Nationalized Banks
  • Foreign Banks
  • Regional Rural Banks
  • Other Scheduled Commercial Banks


Business in Assam is mainly related to the silk and tea that are produced here in large quantity. There is a large amount of revenue and investment involved in the business related to packaging and production of these two items.

Assam is very famous for its tea. A large quantity of Assam Tea is exported abroad. This business in turn earns a lot of revenue for the state. Assamese tea is famous world wide for its wonderful flavor and taste.


The state’s department of fisheries in Assam aims to promote and develop economic farming of fish in the state. This wing of the state government wants to promote the idea of commercially producing fish in almost all the water bodies in the state.

The mission of the fisheries department in Assam is to ensure a stable income from the fish market. They also want to restore indigenous species of fish in the state. They are planning to produce fish of such quality so that the state production can compete with the imported ones. In such cases they will have to consider the cost of production as well.


Forestry in Assam is one of the most important economic activities of the state. This has been possible due to the vast stretch of forests in Assam. A total area of 26,781.91 sq. km is under forests in this state. As a result about 34.14% of the total area of Assam is under forests. Thus a variety of flora and fauna are available in the state.

The State Forest Department is also considering social forestry in Assam very seriously. Their main objective is to enhance afforestation in the residential areas of the Indian state of Assam. The number of seedlings planted in order to promote this scheme was 96.76 lakh during the year 2001-2002.


The tea Industry in Assam is one of the internationally renowned sectors. However, apart from this there are many different industrial activities too going on in the state. The state government is looking forward to more development in this sector as a result of the implementation of certain schemes that were recently designed. Since the state is blessed with natural resources so their proper exploitation is now the main aim of the state government.

The Industries and Commerce Department of the state is trying to overcome all the hurdles and promote a right industrial climate in the state. There are about 12 industrial estates under this department in Assam.

Mineral and Energies

Minerals and Energy Assam play an important role in the industrial development of the state. The mineral resource of Assam is very rich. The diversity in the flora of the state has made it possible. Due to this richness of resource the state is expected to flourish very well in the industrial field.

The energy sources of Assam are mainly the rivers and lakes. This is also one of the basic facts behind the expected industrial boom in the state. The tenth five-year plan has been designed to productively exploit the wealth that is present in the state.

Industry in Assam

Apart from tea and petroleum refineries,[2] Assam has few industries of significance. Industrial development is inhibited by its physical and political isolation from neighbouring countries such as Myanmar, China and Bangladesh and from the other growing South East Asian economies. The region is landlocked and situated in the eastern most periphery of India and is linked to the mainland of India by a flood and cyclone prone narrow corridor with weak transportation infrastructure. The international airport in Guwahati is yet to find airlines providing better direct international flights. The Brahmaputra suitable for navigation does not have sufficient infrastructure for international trade and success of such a navigable trade route will be dependent on proper channel maintenance, and diplomatic and trade relationships with Bangladesh.

Assam is a major producer of crude oil and natural gas in India.[2] Assam is the second place in the world (after Titusville in the United States) where petroleum was discovered. Asia’s first successful mechanically drilled oil well was drilled in Makum (Assam) way back in 1867. The second oldest oil well in the world still produces crude oil. Most of the oilfields of Assam are located in the Upper Assam region of the Brahmaputra Valley. Assam has four oil refineries located at GuwahatiDigboiNumaligarh and Bongaigaon with a total capacity of 7 MMTPA (Million Metric Tonnes per annum). Bongaigaon Refinery and Petrochemicals Limited (BRPL) is the only S&P CNX 500 conglomerate with corporate office in Assam. One of the biggest public sector oil company of the country, Oil India Ltd. has its plant and headquarter at Duliajan.

Although having a poor overall industrial performance, there are several other industries, including a chemical fertiliser plant at Namruppetrochemical industries at Namrup and Bongaigaon, paper mills at Jagiroad, Panchgram and Jogighopa, sugar mills at BaruaBamunGaon, Chargola, Kampur, cement plant at Bokajan, cosmetics plant of Hindustan Unilever(HUL) at Doom Dooma, etc. Moreover, there are other industries such as jute mill, textile and yarn mills, silk mill, etc. Unfortunately many of these industries are facing loss and closer due to lack of infrastructure and improper management practices.










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 boasts largest tea growing area in the world, constituting around one-seventh of the global tea production. The state accounts for over 50 per cent in the country’s overall tea production. It also has 16 industrial estates, three industrial growth centres, 10 Integrated Infrastructure Development Depots, 17 industrial areas, 11 growth centres, six mini industrial estates, one export promotion park and one food processing industrial park. Assam is also the most popular tourist destination among the north-eastern states.

Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 9 per cent to US$ 30.72 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 8.65 per cent to US$ 26.16 billion.

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:

  • Under the current Five-Year Plan, a new Institute of Information Technology (IIT) has been set up in Guwahati, Assam in the Public-Private Partnership mode. It will help in promoting research and industrial partnership in technical education.
  • 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.
  • The IT Policy and Tourism Policy of Assam have given special attention towards specific sector development.
  • 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.
  • Industrial growth centres with supporting infrastructure have been set up at Balipara in the Sonitpur district and Matia in Goalpara at estimated cost of US$ 4.5 million and US$ 5.3 million respectively.
  • Integrated Infrastructure Development (IID) centres have been planned at Parbatpur, Serphangguri, Dalgaon, Demow, Bhomoraguri, Malinibeel, Dahudi, Silapathar, Rangia, Banderdewa and Titabar.
  • The Government of India has created a Special Purpose Tea Fund (SPTF) for rejuvenation of the tea bushes. This will benefit about 700 to 800 tea gardens of the state.
  • Border Trade Centres (BTCs) have been established at Mankachar (Dhubri), Sutarkandi (Karimganj) and Darranga (Kamrup).

Assam Industrial Development Corporation Limited

Assam Industrial Development Corporation Limited has been incorporated in the year 1965 and it has been registered under the Companies Act. 1956. The objective of the Corporation as laid down while forming the Corporation are as follows:

» To promote, establish and execute industries / projects or enterprises for manufacture and production of plant and machinery tools, implements etc. which in the opinion of the company are likely to promote.
» To promote and operate schemes for industrial development of Assam.
» To aid, assist and finance any industrial undertaking, project or enterprise whether owned or run by Government, statutory body, private company or individual with capital credit, means or resources for prosecution of its works and business.
» To promote and establish companies and associations for execution of industrial undertakings.
» To procure capital for or to provide machinery equipments and other facilities to any company or association for the purpose of carrying into effect any objects connected with the industrial development and to subscribe for underwrite or otherwise deal with shares, debentures.

Assam Industrial Development Corporation Limited has been striving towards creating high standard industrial infrastructure in Assam for the growth and development of industries in the State.

Strategy and Business Plan adopted for realization of goal:


» Restructuring for project development, appraisal, facilitation and corporate service group activities
» Project development in PPP mode for generating immediate revenues.
» Develop export oriented units in the state for better trade facilitation.
» Use the immovable properties of closed PSUs for better utilization of industrialization.

Business plan:

» With the objective of developing sustainable revenue sources, AIDC shall pro-actively engage in project identification and development of commercially viable project.
» AIDC shall grow into a leading consultancy agency for similar organizations of North-Eastern Region.
» Under the initiative of AIDC with central assistance, two sector specific project namely ‘Mega Food Park’ at Tihu, Dist-Nalbari and ‘Bamboo Technology Park’ at Chaygaon, Dist- Kamrup are under implementation.
» The Corporation has taken steps to set up sector specific industrial parks in PPP mode and following parks are in progress of implementation – Plastic Park at Gelapukhuri, Dist-Tinsukia, Jute Park at Dhing, Dist-Nagaon, Banana Park and Agro Hub at Matia, Dist- Goalpara, Tea Park near Guwahati, Dist-Kamrup, Chemical and Pharmaceutical Hub at Chandrapur, Dist-Kamrup.
» The Corporation has taken steps for implantation of a Corporate Complex and a Commercial & Business Hub at its land at Guwahati to accommodate corporate office of different multinational, central & state corporate houses in the Corporate Complex at R. G. Baruah Road and commercial/ business organizations in the Commercial & Business Hub at G.S. Road.
» The Corporation has taken steps for construction of Border Trade Centres at different places to facilitate border trade with the neighboring countries and already completed one such BTC at Mankachar, Dist- Dhubri and another one at Golakganj, Dist- Dhubri is under implementation by the Corporation.
» The Corporation has already implemented a Ginger Pack House at Amingaon, Guwahati for value addition and cold storage of ginger. For backward facility, the corporation has taken steps to set up four collection centres at four different places of Assam.
» The Corporation had taken steps to set up an Air Cargo Complex in the State to be located at LokpriyaGopinathBordolia International Airport, Borjhar, Guwahati to improve the cargo handling infrastructure facility including cold chain facility.
» The Corporation with the directive of Government of Assam has taken steps for implementation of large cement plant, Calcom Cement Project at Lanka &Umrangshu and IV Fluids project at Amingoan, Dist-Kamrup.
» The Corporation had initiated steps for implementation three MSME Cluster Development Project at Moran, Dist- Dibrugarh at Sonari, Dist- Sibsagar and at Pathsala, Dist- Barpeta.
» The Corporation has taken steps to set up a Regional Food Testing Laboratory with central assistance at Tihu, Dist- Nalbari for urgent need of the food processing sector.
» The Corporation has taken steps to upgrade the existing Export Promotional Industrial Park, Amingaon and Industrial Infrastructure Development Centre, Dalgaon under Ministry of MSME, Govt. of India for better infrastructural facility to attract the entrepreneurs for investment.
» AIDC has implemented various infrastructure projects like Export Promotional Industrial Park, Industrial Growth Centres and Industrial Infrastructure Development Centres to promote large, medium and small industries in the /state. The Corporation has been successful to attract entrepreneurs in these centres and thereby contributed to the economic growth as well as employment generation.
» The Corporation also been instrumental to attract mega investment in the State. At Industrial Growth Centre – Matia, 200 acres of land has been allotted to M/S Kohinoor Pulp & Paper Pvt. Ltd for setting up of a Pulp & Paper Plant with and investment of Rs. 1500.00 Crore and another 100 acres of land is allotted to Ind Swift Laboratories Ltd for setting up of a pharmaceutical unit with an investment of Rs. 1285.00 Crores.


» Enriching the state of Assam through a vibrant and sustained industrial growth.


» Facilitating the continuous and speedy industrial growth through optimal utilization of available resources.


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