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Why Assam?
Assam is no longer a peripheral geography; it is now a central and strategic core of India’s future. To businesses, investors, and visionaries, Assam is much more than an opportunity; it is a chance to lead a sustainable, regional, and impactful movement in one of the most vibrant corners of our country.
- A Strategic Gateway to Southeast Asia
- The Industrial Powerhouse of the Northeast
- Policy Supported Growth Ecosystem
- Resource Abundant, and Greater Potential
- Infrastructure that Supports Scale
- Talent, Culture & Sustainability
Why Northeast Matters - and why Assam is at the Forefront
Assam, known as the heart of Northeast India, is not just a state; it is a robust economic corridor full of possibilities, resources, and momentum. With a land area of over 78,000 square kilometers and over 31.2 million people, Assam is the bastion of Northeast India with a unique backdrop of its geography, people, and a thriving economy.
In the last few years, Assam has emerged as one of India’s fastest-growing economies with an impressive compound annual growth rate (CAGR) of 12.62%, signaling a mature and progressive development model underpinned by resource-led creation of growth. Starting from a Gross State Domestic Product (GSDP) of $69.5 billion last year, it has grown at an astounding rate of 19% last fiscal year, exceeding several national averages.
Assam’s economic structure is unique, with a balanced contribution across all the sectors:
- Primary sector (Agriculture & Natural Resources): 35%
- Secondary sector (Industry & Manufacturing): 19%
- Tertiary sector (Services & Trade): 46%
Assam is also increasingly recognized as the economic bulwark and corridor to Northeast and Southeast Asia as it continues to contribute to industrial growth, logistics growth, and inclusive, sustainable growth. From petrochemicals to ethanol, agro-processing to logistics, Assam will not only be part of India’s growth story but will help write the next chapter of inclusivity, eastern resurgence.
Index of Industrial Production (IIP) of Assam
This graph presents a comparison of the Index of Industrial Production (IIP) for the manufacturing sector between Assam and India over a six-year period, from 2017-18 to 2022-23.
Key Observations:
– We note that there are two sets of bars on the graph, Assam and India, which represent IIP readings for that particular year.
– The IIP readings were as follows:
– 2017-18: Assam (124.63), India (126.6).
– 2018-19: Assam (125.46), India (131.5).
– 2019-20: Assam (126.43), India (131.5).
– 2020-21: Assam (132.25), India (129.6).
– 2021-22: Assam (152.42), India (117.2).
– 2022-23: Assam (157.64), India (137.1).
Trends and Observations:
– The IIP readings for Assam continuously increased throughout the six years, including a surge in 2021-22 and 2022-23.
– The IIP readings for India exhibited ups and downs, peaking in 2018-19 and 2019-20, and showing a decrease in 2021-22, before regaining some growth in 2022-23.
– The IIP readings for Assam surpassed those for India in 2021-22 and 2022-23, confirming a stronger growth in its manufacturing-related production than Indian averages.
– Overall, the data suggests superior growth in Assam’s manufacturing subsector over the last few years.
Powering Industrial Expansion in Assam
In the past several years, Assam has surpassed India in terms of IIP growth, or Index of Industrial Production, particularly after the year 2020-21. While there was a pronounced effect of COVID on the economy of India via a nationwide lockdown, Assam showed a strong degree of resilience and recovery. The important drivers of this industrial uplift trajectory have been –
- Increased investments in ethanol manufacturing and clean energy
- Enhanced logistics and warehousing capacity
- Support from the government via NEIDS and local industrial policy
This is a strong signal and indicates a powerful shift – Assam is not only catching up but is also leading or at least is in the lead for some parts of industrial manufacturing. Assam is developing to be a major industrial area of significance for Northeastern India and beyond.
