Assam is steadily emerging as one of the most promising industrial destinations in Northeast India. With major infrastructure upgrades, improving connectivity, rising consumption, and strong support from both State and Central governments, the region is attracting serious interest from manufacturing units, logistics companies, service industries, and MSMEs.

To accelerate this momentum, the Government of Assam introduced the Assam Industrial & Investment Policy (AIIP) 2023, a forward-looking policy designed to promote industrial growth, reduce investment barriers, and support businesses across all sectors.

This policy is a major update over earlier industrial frameworks and includes more attractive incentives, clearer processes, and a strong push for ease of doing business. Whether a company is planning a manufacturing unit, warehouse, service centre, food processing plant, logistics hub, or startup operation — AIIP 2023 offers meaningful benefits.

In this article, we explain the policy in simple language and highlight how investors in Guwahati, Kamrup, Sonapur, Changsari, Amingaon, Baihata, and other parts of Assam can take advantage of it.

Why Assam Introduced AIIP 2023

Assam has a unique economic position:

• It is the gateway to Northeast India
• It offers access to South Asian markets via Bangladesh and Bhutan
• Guwahati is one of the fastest-growing commercial hubs in Eastern India
• E-commerce, FMCG, food processing, healthcare, tourism, and logistics demand are rapidly increasing

However, industries in Assam have historically faced challenges such as logistics costs, fragmented industrial land, and limited large-scale industrial infrastructure.

AIIP 2023 aims to address these gaps by:

• Offering strong subsidies and tax benefits
• Encouraging new investments
• Supporting MSMEs and startups
• Developing industrial corridors and parks
• Promoting modern logistics and warehousing
• Improving ease of doing business

This policy helps Assam compete with larger industrial states and attract high-value investments.

Key Objectives of AIIP 2023

The policy is built around several core goals:

✔ Encourage large, medium, small, and micro enterprises

✔ Promote value-added manufacturing

✔ Strengthen industrial infrastructure and logistics

✔ Create employment across sectors

✔ Support emerging industries and new technology

✔ Improve overall business climate through simplified approvals

AIIP 2023 is designed to benefit both new investors and existing businesses expanding their operations.

Major Incentives Offered Under AIIP 2023

AIIP 2023 includes a range of financial and operational incentives that reduce the cost of doing business in Assam.

1. Capital Investment Subsidy

This is one of the most important incentives.

• Available for investment in plant, machinery, and civil works
• Higher subsidies for units in less-developed districts
• Helps lower the initial capital burden on industries

This subsidy encourages manufacturing and processing units to expand in Assam’s industrial belts.

2. SGST Reimbursement

To reduce operational costs, the policy offers partial reimbursement of State GST for eligible units.

• Performance-based
• Available for a defined period after commercial production

Encourages long-term operations and consistent production

This is particularly helpful for manufacturing, food processing, and packaging sectors.

3. Power Subsidy

Electricity is a major cost for industries, especially cold storage, processing, and fabrication units.

AIIP 2023 provides:

• Subsidized power tariffs
• Refund of electricity duty (for eligible units)

Encouragement for solar and renewable energy use

This helps improve profitability of industries operating in Assam.

4. Interest Subsidy on Loans

Industries taking term loans for plant and machinery receive interest subsidies for:

• 5–7 years
• Percentage depends on district category and sector type

This makes it easier for entrepreneurs to finance industrial projects.

5. Employment Incentives

Industries employing local youth receive support based on:

• Number of jobs created
• Skill level
• Wage structure

This encourages labour-intensive sectors like textiles, food processing, services, and logistics.

6. Land & Infrastructure Support

The policy supports the development of:

• Industrial parks
• Logistics hubs
• Private industrial estates
• Plug-and-play setups

This makes land more accessible for industrial use, which is one of the biggest challenges for investors.

Sectors Eligible Under AIIP 2023

The policy covers a wide variety of industries:

✔ Manufacturing Sectors

• Food processing
• Plastics and packaging
• Bamboo and wood-based industries
• Pharmaceuticals
• Engineering goods
• Textiles and garments
• Rubber and polymer units
• Paper and pulp
• Electronics assembly

✔ Service Sectors

• Logistics and warehousing
• IT and ITeS
• Tourism and hospitality
• Healthcare services
• Skill development centres
• Repair and maintenance services
• E-commerce fulfilment centres

✔ Emerging Industries

• Renewable energy
• Electric vehicle components
• Drone manufacturing
• Clean-tech and environmental services

This makes AIIP 2023 one of the most inclusive industrial policies in Northeast India.

Ease of Doing Business – A Key Strength of AIIP 2023

The policy strongly focuses on improving the business environment in Assam through:

✔ Single Window Clearance

A centralised digital system for approvals and permits.

✔ Time-bound approval processes

Reduces delays and ensures transparency.

✔ Ease of land allotment

Industrial areas and logistics corridors are being developed across Assam.

✔ Online tracking and documentation

Makes compliance easier for businesses of all sizes.

Why AIIP 2023 Is Important for Guwahati & Key Industrial Zones

Guwahati and its surrounding districts are the biggest beneficiaries of AIIP 2023 due to:

• Strong highway and railway connectivity
• Expanding urban market
• Major logistics demand
• Proximity to industrial clusters
• Active warehouse development

Key growth zones include:

• Amingaon
• Changsari
• Baihata
• Azara
• Sonapur
• Mirza
• Bongaigaon

AIIP 2023 strengthens these zones by attracting investments and supporting industries operating in them.

How Jagati Group Helps Businesses Under AIIP 2023

Jagati Group supports industries and investors by offering:

✔ Strategically located land parcels

Ideal for manufacturing plants, warehouses, or service units.

✔ Ready-to-lease warehouses

Perfect for logistics, distribution, cold chain, and e-commerce operations.

✔ Assistance in choosing the right industrial location

Based on connectivity, growth potential, and policy benefits.

✔ Support with documentation and due diligence

Ensures smooth land leasing or purchase processes.

With its strong network and property portfolio across Assam, Jagati Group helps investors take full advantage of AIIP 2023.

Conclusion

The Assam Industrial & Investment Policy 2023 is one of the most impactful initiatives introduced to boost the state’s economic growth. With strong incentives, simplified approval systems, and wide sector coverage, the policy creates excellent opportunities for manufacturing units, logistics players, service industries, MSMEs, and startups.

Assam’s strategic location, rising consumption, and improving infrastructure make it an ideal destination for industrial expansion — and AIIP 2023 makes this even more attractive.

For businesses looking to set up operations in Assam, this is the right time to explore opportunities, and Jagati Group remains a trusted partner in providing the right land parcels and warehousing solutions.