Availability of bamboo in abundance in the northeast region and the huge gap in demand and supply of incense sticks in India makes the production of incense sticks in the region a commercially viable venture. Policy support by the Central government in the form of import restriction on raw incense sticks and an increase in import duty on bamboo sticks has revived hope for the sustainability of entrepreneurial ventures of incense making in the region. According to Khadi and Village Industries Commission (KVIC), the current daily consumption of incense sticks in the country is 1,790 metric tonnes while the domestic production is only 760 MT. The shortfall in supply by the domestic incense stick industry is met through the import of raw incense sticks as well as bamboo sticks. The previous Congress-led United Progressive Alliance government reduced the import duty in 2011 from 30% to 10% which led to a surge in the import volume of raw incense sticks from just 2% valued at Rs 31 crore in 2011 to 80% valued at Rs 546 crore in 2019. While the UPA policy change benefited the incense making units in China and Vietnam and importers in India, it led to the closure of 25% of incense sticks manufacturing units in India and a huge loss of jobs and livelihoods. The Bharatiya Janata Party-led National Democratic Alliance government in its previous term included the import of raw incense sticks in the "restricted" category and also increased the import duty on bamboo sticks to 25% to disincentivize import and to promote local manufacturing of incense sticks. India is one of the largest incense sticks producing countries and meets more than 50% of the global demand. This labour-intensive industry with an annual production size of Rs 8500 crore including export volume to the tune of Rs 1,000 crore, provides livelihood to about five lakh people in the country. A split, sliced and sized bamboo stick is the key raw material for making incense sticks but local production of the required quantity is still an issue. The natural advantage for the northeast region is that bamboo species – BambusaTuldaor Indian timber baboo which is considered suitable for Indian incense making units, is available in abundance in the region. The Indian industry has to source the bamboo sticks from China and Vietnam and if the local production does not increase and is not available at a cheaper price then an increase in import duty will be unsustainable for the manufacturing units. The KVIC provides a 90% subsidy to artisans for procuring pedal-operated machines used in making hand-rolled incense sticks and a 65% subsidy for automatic machines. Wide publicity to subsidies available for setting up incense manufacturing units will encourage entrepreneurs to avail themselves of the opportunities to tap the potential of locally available raw materials and eye the domestic as well as the expanding export market. The KVIC supporting 70 women entrepreneurs of seven Self Help Groups in Assam to set up their incense making units at Birkuchi in Guwahati under the Prime Minister's Employment Generation Programme demonstrates the opportunities that are available for the growth of incense making industry in the region. The KVIC has roped in a local manufacturer in the state as their business partner so that women entrepreneurs cannot take the trouble of marketing their finished products. The business model allows the business partner to increase production without capital investment in machinery and is expected to increase competitiveness. With 70 automatic machines, procured by the women entrepreneurs with the KVIC subsidy will produce 5,600 kilograms of incense sticks daily. Availability of bamboo and other raw materials including charcoal sawdust or binding materials at cheaper prices will be critical for the long-term sustainability of these manufacturing units set up by women SHG. The success of this business model will encourage more women SHG members in the state and the region to set up incense manufacturing units. The KVIC as well as the state governments in the region pushing it on a mission mode can turn the region into an export hub of incense sticks. The new policy regime for the incense industry has helped the revival of the manufacturing units in Tripura which has also brightened hopes for expansion and growth of the industry in the region. In addition to the availability of raw materials, the Assam Bamboo and Cane Policy, 2019 is an added advantage for the promotion of the industry in the state as the policy allows bamboo plantation in forest land apart from non-forest and private land. The annual availability of bamboo in Assam is estimated at 7.25 lakh tonnes and alignment of the policy with incense manufacturing can increase the production and cultivators reaping benefit while contributing to India's effort to reduce import and make the industry self-reliant. The Northeast has huge potential for incense manufacturing but the governments and entrepreneurs in the region must be able to realise it to unlock it.