Vikash K Agarwall
Assam’s development essentially focused on attracting investment, expanding in frastructure, and increasing funding allocations. Assam’s economy has been growing rapidly—according to data, it expanded by about 45% between 2000 and 2025, outpacing the national average. The number of registered factories in Assam is increasing from 3000 in 2011-12 to more than 8000 in 2022-23. The MSME sector in Assam is a key economic driver, with over 13 lakh registered units (as of late 2025), including 2.94 lakh in manufacturing, 6.74 lakh in services, and the remainder in trading. Growth is supported by the government’s development policy, focusing on investment, digital adoption, and leadership vision. A large portion of MSMEs operate in the tea, agriculture, and service sectors, with rapid growth in cities like Guwahati, Dibrugarh, and the Jorhat region.
Assam stands at an economic and administrative crossroads. With rising aspirations and finite means, efficiency is no longer optional. Whether in government offices, hospitals, or factory floors, the opportunity to eliminate waste and enhance value is real. Small and medium enterprises show promise, yet competitiveness gaps persist. Lean manufacturing techniques reduce defects, inventory costs, and production delays. In a region seeking to expand manufacturing and value-added industries, Lean could strengthen local enterprises without heavy capital infusion.
Is Assam ready for Lean? The answer depends not only on policy intent but also on institutional will. Adopting Lean is not merely about tools; it is about mindset. Lean is not about cutting expenditure recklessly. It is about eliminating non-value-adding effort & freeing capacity within the existing system.
Assam’s industrial ambitions, particularly in food processing, tea value addition, and small manufacturing, depend heavily on MSME competitiveness. Many small units struggle not with market demand but with production inefficiencies, quality inconsistency, and inventory mismanagement. A small-scale manufacturer doesn’t always lose to bigger companies because of price; sometimes they lose because they are not consistent. Lean manufacturing techniques are used to help small enterprises compete beyond subsidies and incentives. For a state aspiring to strengthen local value chains, this could be transformative. The question now is whether Assam is institutionally and culturally prepared for the transformation.
While Lean thinking promises efficiency and competitiveness, we may argue that for many MSMEs in Assam, it may sound idealistic & even impractical. Unlike large manufacturing clusters in western or southern India, a significant portion of Assam’s MSMEs operate on thin margins, limited automation, and informal management structures. According to state industry data, the overwhelming majority of registered enterprises fall under the micro category, which are often family-run, labor-intensive, and capital-constrained. It may be debatable that before introducing Lean frameworks, the state must first address the foundational bottlenecks of reliable power, stable supply chains, and skilled supervisors. When an MSME is struggling with power fluctuations, logistics costs, and raw material price volatility, process optimization is not the first concern. Assam’s industries face unique geographic and infrastructural challenges: higher transportation costs due to distance from major consumption hubs, shortage of funds, limited access to advanced manufacturing technology, and skill shortages in process engineering and industrial management.
For Assam’s MSMEs, Lean may need adaptation rather than replication. Instead of sophisticated industrial engineering models, the focus could begin with basic inventory control, simple workflow standardization, better space utilization, reducing rework and material waste, and skill development. A sector-specific approach can give a better result than a scientific tool-based approach. Implementing 5S in tea factories can drastically reduce the wastage of motion during peak leaf-collection seasons. Adoption of visual management of over-processing waste by standardizing workflows without compromising the artisanal quality of Muga and Eri silk is another LEAN tool. Just-in-Time (JIT) inventory management can effectively handle the bulky nature of raw materials, thereby reducing the capital tied up in storage within bamboo- and paper-based industries. There is a direct synergy between Lean and the ZED (Zero Defect Zero Effect) scheme. For Assam’s MSMEs to tap into the ‘Act East’ policy markets, Lean is the only way to achieve the price competitiveness required to go global.
The ‘8th Waste’ in Lean is Unutilized Talent. In Assam, where there is a perceived skill gap in the rural workforce, Lean offers a structured framework by adopting Kaizen culture and upskilling the workforce by preparing SOPs. Empowering local workers to suggest small daily improvements & specific skilled individuals by documenting processes allows for easier scaling and fosters a sense of ownership, which is vital for the sustainability of microenterprises. Manufacturing in Assam (cement, chemicals, plastic, and food processing) often suffers from specific regional logistical “waiting” (muda) and energy inefficiencies.
For an MSME in Assam, Lean is the most effective way to compete with larger “mainland” players. Since we cannot always control the transportation costs into the state, we must control the conversion costs inside the factory. The Government of India is providing support to MSMEs in implementing LEAN. To overcome these challenges and embrace a lean approach, MSMEs in Assam need to focus on adopting 5S (Sort, Set in order, Shine, Standardize, Sustain), visual control, and Kaizen (continuous improvement) to improve their competitiveness.
(Vikash Agarwal is a Lean Management and Compliance Advisor working with MSMEs across Northeast India on productivity, sustainability, and regulatory transformation.)